UK inflation figures have been telling a strange tale lately. On the new target measure, known as the Consumer Price Index, inflation has surged past the Bank of England’s 2% target, to 2.4% in August, …
Bank Charges and UK Inflation
What Delphi’s Bankruptcy Means For The US
Delphi’s bankruptcy is a big deal. It is emblematic of a new set of pressures bearing down on the US. The global rebalancing framework that I continue to embrace suggests that the world’s growth and …
Indian Stocks Still Look Good For Long-Term
Over the past 15 months India’s stock market has risen more than 70%, but strong share price returns over relatively short time periods are not unprecedented in the Indian context. The most recent rise however, …
The Bright Side of the US Consumer’s Decline
There are many dimensions to the world’s imbalances. We tend to focus on the financing side of the equation, stressing mounting disparities in saving rates, current account balances, and debt. But at a different level, …
Fed Hikes Won’t Save Dollar From Debts
The near-certainty that the Fed will raise US interest rates once or even twice more this year is a sharp reversal of the sentiment immediately post-Katrina, which was that they might hold, even cut. As …
Gilts Are Overpriced On UK Rate Cut Hopes
We are currently taking a cautious approach to the gilt market because we believe the market’s continued expectations of further official interest rate reductions after the August cut are too ambitious. We believe the August …