Death Star Economics



Tuesday, #37: vacation

Once more, I am tired of reading and writing about the eurozone crisis, so I decided today to be a holiday from all the drama. Enjoy.

UK consumer price inflation slowed down! From 5% down to 4.8%. But wait a minute, is that right? According to a bunch of RBS economists, it’s more than right. The UK has been so boldly above its target that it’s expected that inflation is down to just above 3% by March 2012.
According to the poor 2012 outlook for the British economy by the OECD, the UK is in a technical recession, which is unlikely to change if people don’t start spending money. Obviously, even though Tesco is quoted in the following article, this does not apply to Tesco’s mixed nuts, which recently rose by about 30p! read article
The low inflation rate, and with it the slow growth, make another £75bn quantitative easing push in February very likely. read article

In October, a firm called Latour Trading kicked Goldman Sachs of its throne as largest high frequency trader in the world. In the week from October 3-7, Latour accounted for 4.9% of all trading on the New York Stock Exchange, about $571m worth of shares. That may be surprising, but what far more interesting is that nobody seems to know anything about the company. The beginning of the article I’m referring to says Latour’s website doesn’t open and that is true. Weird for a technology-based company, right? And how do capital requirements work if you buy and sell $4bn worth of shares in a time frame that is shorter than the blink of an eye? The thought is scary, but it’s also kind of cool… read article

Very much in line with this: Joris Luyendijk, Guardian blogger and explorer of the world of finance, meets a “quant guy” for lunch. read article

Well, Apple, someone had to say it: your products ain’t cheap, yo. As the tech firm is losing ground to Google in the mobile advertising business, much like everybody else, minimum commitments with Apple shrunk from $1m to $500,000 to maybe even $400,000. In 2010, Apple’s slice of the mobile ad market was worth $94.5m or 15% overall, which is not bad for a computer company, but not great for an advertiser that wants to take down Google. read article

So long.

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