The debate on whether or not the global economy will slip into recession continues to take a substantial share of the financial pages.
One view is that talk of a world recession is overdone given that the global economy has experienced four years of annual growth (continue reading…)
2008 has started with the usual debate on the outlook for the world’s economies. Creating much comment is whether or not the US will slip into recession.
Recently the US Federal Reserve has indicated that it favours greater “insurance” against the prospect of an economic downturn. This has been taken in some camps as a signal that the Fed will cut interest rates by 50 basis points this month. The Fed has reduced the US benchmark rate by 1% since September. (continue reading…)
Continuing speculation on the extent of the sub-prime lending issue, and how the authorities may react to it, is maintaining its grip on the financial markets.
Most recently, US equities have risen to their highest level in a month on the back of an expectation that the US government may implement a plan to limit (continue reading…)
The sub-prime mortgage situation is continuing to create unrest in equity markets with the uncertainty surrounding the scale of the lending issue prolonging the markets’ insecurity.
In the US, the S&P 500 has fallen over recent weeks to the extent that it has now given up the gains achieved in 2007 to stand at 1,416.77, a loss of 0.1% for the year to date.
Asian stocks have also (continue reading…)
The sub-prime mortgage situation continues to dominate the headlines.The US Federal Reserve’s move to reduce its benchmark interest rate by half a percentage point reportedly surprised many economists who had been expecting a quarter-point cut. (continue reading…)