Источник
RSS feed for topic: Business
15 сентября, 16:03

Default is not in the stars: A positive sign from the bond market

  • 0

Main image:  THE stockmarket's positive mood has managed to survive the tensions over North Korea's nuclear programme.  In part, this is because investors believe that global economic growth and corporate profits will continue to do well.One reassuring signal is from the corporate bond market. The global default rate on speculative (junk) bonds has been dropping; fewer companies are going bust (see chart).  This is the first time the default rate has dropped below 3% since October 2015 when a sudden fall in the oil price caused cashflow problems for the energy sector, particularly in the US. Moody's, a rating agency, thinks the trend will continue, with defaults falling to 2.6% by the end of the year and 2.3% in 12 months' time.The spread (or excess interest rate) paid by speculative borrowers has dropped back after a spike in 2015. Spreads are not as low as they were in 2007 (the height of the credit boom). But given that government bond yields are very low, the total cost of borrowing in nominal terms is extremely subdued by historical standards. That has made it easier and cheaper for companies to refinance themselves, and thus makes a short-term spike in defaults less likely. What could spoil the party? Central banks might tighten monetary policy too quickly and push economies ...

14 сентября, 17:54

Tracking changes: Egypt is making renewed efforts to reform its economy

  • 0

Print section Print Rubric:  The Egyptian government is making renewed efforts to reform the economy through privatisation Print Headline:  Changing track Print Fly Title:  Egypt’s economy UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Tracking changes Main image:  20170916_map001.jpg THE train north from Cairo winds through the lush fields and meandering canals of the Nile Delta, before chugging into Alexandria. The scenery is pleasant on a 180km journey that can drag on for more than four hours. It is slow enough that EgyptAir offers flights on the same route. Egypt’s state-owned, 6,700km rail network, the oldest in Africa, has seen better days. Stations are dingy; trains are dangerous and often delayed. In August 41 people were killed in one collision. It was the deadliest crash since 2012, but smaller ones are common, with over ...

14 сентября, 17:54

Just the job: Ever more Indians are struggling to find work

  • 0

Print section Print Rubric:  Ever more Indians are struggling to find work Print Headline:  Just the job Print Fly Title:  India’s economy UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Just the job Location:  LUCKNOW Main image:  20170916_ASP001_0.jpg A DOZEN hefty wooden crates sit outside a small factory on the outskirts of Lucknow, the capital of India’s most populous state, Uttar Pradesh. On the shop floor inside, where chattering machines bag and package herbal teas, a manager explains what will happen when he opens the crates. “His job will go,” he says, nodding at one boiler-suited operator. “And his over there, and that one’s too.” Improved technology has already boosted the firm’s output fivefold since its launch in 2002, with no increase in staff. The new ...

Выбор редакции
14 сентября, 17:54

Paradise lost: How Hurricane Irma will change the Caribbean

  • 0

Print section Print Rubric:  After one of the most powerful hurricanes ever to hit the Caribbean, the region will have to change the way it plans for disasters Print Headline:  Paradise lost Print Fly Title:  Hurricane Irma (1) UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Paradise lost Main image:  20170916_AMP001_0.jpg FOR three days in early September Hurricane Irma ground through the eastern Caribbean like a bulldozer made out of wind and rain. Tropical breezes became 300kph (185mph) blasts, turning “tin roofs into flying razor blades”, as Maarten van Aalst of the Red Cross put it. Placid seas reared up in giant waves and rainwater coursed through streets. Even when the sun eventually came out the nightmare did not end. Shortages of food and water sparked looting on some islands. Survivors were grateful that fewer than 50 ...

14 сентября, 17:54

Give with one hand, take with the other: Lifting the public-sector pay cap spells trouble for the chancellor

Print section Print Rubric:  Lifting the pay cap eases political pressure but piles on the economic sort Print Headline:  A problem postponed Print Fly Title:  Public-sector pay UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Give with one hand, take with the other Main image:  20170916_brp503.jpg IT WAS one of Britain’s signature austerity policies. Since 2011 pay increases for most public-sector workers have been capped at 1% a year at most. But on September 12th the government announced that prison staff and police officers would receive a pay rise of around double that this year. Now that the pay cap has been lifted for some public servants, others are expecting a pay rise too. That creates a headache for Philip Hammond, the chancellor, who has a budget looming in the autumn. For months Mr Hammond has been under pressure to lift ...

14 сентября, 17:54

Fixing cities: In Detroit, the end of blight is in sight

  • 0

Print section Print Rubric:  What happens when a place accustomed to bad government elects a good one Print Headline:  The end of blight is in sight Print Fly Title:  Detroit UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Fixing cities Location:  DETROIT Main image:  20170916_USP506_0.jpg “SPERAMUS meliora; resurget cineribus”: the Latin incantation, offered by a French Catholic priest after a fire nearly destroyed the city in 1805, is Detroit’s motto—“We hope for better things; it will rise from the ashes.” The once-great city, the “arsenal of democracy” during the second world war and home of the world’s most innovative manufacturers, has almost been ruined a second time. National interest in Detroit has waned since its bankruptcy proceedings, brought on by decades ...

14 сентября, 17:54

Bank of many trades: The many, often competing, jobs of the Bank of England

  • 0

Print section Print Headline:  A bank of many trades Print Fly Title:  The Bank of England UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Bank of many trades Main image:  20170916_bkp510_0.jpg Till Time’s Last Sand: A History of the Bank of England 1694-2013. By David Kynaston. Bloomsbury Publishing; 896 pages; £35. To be published in America in November; $75. MONTAGU NORMAN, the longest-serving (1920-44) and most eccentric governor of the Bank of England, had little time for economists. He quipped to his economic adviser that “You are not here to tell us what to do, but to explain to us why we have done it.” It was a remark that hinted at the commitment to aristocratic amateurism that many feel the bank has displayed for three centuries. Today’s bank is much more professional, but it is nonetheless blamed by the left for failing to prevent the financial crisis and by the right for its bleak ...

14 сентября, 17:54

Self defence: How to protect yourself against the theft of your identity

  • 0

Print section Print Rubric:  The market in services to counter identity theft Print Headline:  Self defence Print Fly Title:  Identity-theft monitoring UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Self defence Main image:  20170916_FND002_0.jpg AS IDENTITY theft has proliferated, so has the number of businesses hoping to make money selling protection against it. Companies such as LifeLock, Identity Guard and PrivacyGuard sell products similar to Equifax’s TrustedID Premier identity-theft protection. That was the service Equifax offered to every American with a Social Security number in the aftermath of its big data breach. Those who enroll in TrustedID are promised notification if their information is offered for sale on the internet. Their credit reports with Equifax, Experian and TransUnion, the “Big Three” credit-reporting ...

Выбор редакции
14 сентября, 17:54

Generation games: Great strides have been made against disease and poverty

  • 0

Print section Print Rubric:  The past 15 years have seen spectacular falls in poverty and ill health. The next 15 are unlikely to be as good Print Headline:  Generation games Print Fly Title:  The Gates report UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Generation games Main image:  20170916_irp002.jpg IF YOU look beyond the rich West, most of which has been in a funk ever since the financial crisis of 2007-08, the world has had an amazing run. Fully 6m fewer children under the age of five died in 2016 than in 1990. Never before have so many people been free of grinding poverty and ill health. Never have women been so unlikely to die as a result of giving birth, or to lose a baby to illness. But the possibility that after this long winning streak humanity could be about to trip and fall is preoccupying Bill and Melinda Gates, a ...

14 сентября, 17:54

Pretty vacant: Why Donald Trump should reappoint Janet Yellen

  • 0

Print section Print Rubric:  Why Donald Trump should reappoint Janet Yellen to lead the Fed Print Headline:  Dangerously vacant Print Fly Title:  The Federal Reserve UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Pretty vacant Main image:  20170916_LDP001_0.jpg ONE of the many fears about President Donald Trump was that he would pack the Federal Reserve with loyalists. That concern has been replaced by another: the central bank’s top echelons are unpacked with anyone. On September 6th Stanley Fischer, a seasoned policymaker and crisis-fighter (see Free exchange), announced that for personal reasons he was retiring early as vice-chairman. That means a fourth vacancy has opened up on the Fed’s board; as a consequence, four of the 12 seats on the Fed’s interest-rate-setting committee are also up for grabs. That number could rise to five ...

Выбор редакции
14 сентября, 17:54

Switching to autopilot: The Fed prepares for its balance-sheet—and its board—to shrink

  • 0

Print section Print Rubric:  The Fed prepares for its balance-sheet—and its board—to shrink Print Headline:  Switching to autopilot Print Fly Title:  The Federal Reserve UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Switching to autopilot Location:  WASHINGTON, DC Main image:  20170916_FNP003_0.jpg NINE years ago, in the autumn of 2008, the Federal Reserve was fighting a financial collapse. To stave off disaster, it lent aggressively—to banks, to money-market funds, even to other central banks. As a result, its balance-sheet ballooned. At the start of September 2008, the month when Lehman Brothers collapsed, the Fed’s assets totalled $905bn (at the time, about 6% of GDP). By December they had more than doubled in size, to $2.1trn. That was only the start. As its ...

Выбор редакции
14 сентября, 17:54

Ripples at the top: Goldman Sachs announces a change in strategy

  • 0

Print section Print Rubric:  America’s star investment bank embraces change Print Headline:  Ripples at the top Print Fly Title:  Goldman Sachs UK Only Article:  standard article Issue:  Closing in on cancer Fly Title:  Ripples at the top Location:  NEW YORK Main image:  20170916_fnp502.jpg IT IS not easy to feel pity for Goldman Sachs. Its alumni lord it in pivotal government positions around the world; from every prestigious business school, applicants queue in hope of a job; its senior executives earn eye-watering amounts; and it has a presence, it seems, in every corner of the global economy. Yet these are troubling times for the bank. It is facing fundamental questions about its business model. Its investors are particularly worried by a precipitous decline in the fortunes of its core ...