The UK economy is a known mess.
In Q2, the economy shrank 0.7%.
Not only is the country back into a double-dip recession, but the economy is even growing slower than the Eurozone, where Q2 GDP only shrank 0.2%.
A big culprit is the austerity agenda of Prime Minister David Cameron, who came into office in 2010. Cameron cut government spending, with the aim of restoring confidence and unleashing the private sector.
The path has been such [...]
he Reserve Bank of Australia cut its key cash interest rate again on Tuesday, in a widely-expected effort aimed at protecting the domestic economy from increasing global growth risks.
The cash rate was lowered by a 0.25 percentage points to 3.5%.
“The board judged that, with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of [...]
The S&P 500 closed at about 1,370 at the end of last week, exceeding David Kostin’s target of 1,250 for the end of 2012. Kostin, chief U.S. equity strategist at Goldman Sachs, told Bloomberg TV that he is sticking by his forecast despite the S&P’s recent run.
Kostin said there were three main reasons for his call:
The U.S. economy is stagnating, growing below trend.
In a weak economic growth environment, markets historically have a flat multiple
2012 is [...]
Will the lower rates preferred by the voting group’s doves eventually lead to a faster growing economy and a higher stock market? It appears to us that lower interest rates are not having their usual stimulative effect. The Fed seems to be “pushing on a string” for lack of a better term. In our opinion, the high level of personal debt is keeping many consumers from boosting their purchases in [...]