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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

If it’s not rates, it’s drugs: a new banking scandal

Today’s headlines refreshingly deviate from previous days, with HSBC’s involvement in money laundering and financing drug trafficking, terrorism and everything else that is bad. Surely, the paranoia behind and intensity of the bank’s investigation isn’t helped by the Libor scandal, which in itself isn’t helped by the financial crisis or Occupy Wall Street or all those bad-banker stories (Hello, Greg Smith, hello, Bruno Iksil…) that have been around lately.

Also, the IMF has slashed global growth forecasts in appreciation of the sticky molasses that is the world economy right now. The new forecast for 2012 is growth of 3.5% globally, with the eurozone shrinking by 0.3%. The UK, so it says, will only expand by 0.2% this year. This comes as inflation hits a 32-month low of 2.4%.

That links nicely to the decline in foreign direct investment in China, which is down almost 7% or $12bn from last year. The FT debates whether slower growth is the right way for the country. read article

The US unemployment rate, which hasn’t undercut 8% in 41 consecutive months, which could change monetary policy with regard to additional quantitative easing. The Keynesians, mostly Paul Krugman of course, are jumping up and down crying out to leave the inflation rate alone to stimulate job creation. read article

Marissa Mayer has been appointed CEO of Yahoo. She was previously an executive and spokesperson for Google. She is the company’s fifth CEO within four years. For feminists Mayer may just become a poster child: head of a tech/internet company and pregnant when she got the job. That’s right, Mayer may only stay with Yahoo over the summer, as she’s expecting a child in October. But that’s just marginally interesting, because with its search business continuously losing ground and its online ad share declining to 9% this year, Yahoo’s future is a little bit all over the placeread article

Otherwise, German investor outlook for the coming 6 months (ZEW index) is down and Moody’s downgraded 13 Italian banks, including the country’s largest lenders.

So long.
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One Response

  1. princess1960 says:

    CHINE for some reason you give to much power …????
    HSBC biger bank UK is in CHine and HONG KONG is follower others scandals bank’s (is not surprise) because we are in monetary crisis so ..one by one we will hear scandals (for me is one exuse) to belelive what happening in world .
    IMF nice step
    INFLATION not big problem

    UNEMLOIMET big problem
    YAHOOwe will see..(big reclam) small job.
    thank for the inf.
    ah ..IT bank’s i know ..very good what they needed CAPITAL
    THE SAME WITH SPAIN
    I don’t know where Merkel will find so much money because how i know just IT AND SP needed 800 bil eu
    and Mercel doesnt have only 500bil (i am not exacte)
    i think we will have big changes in EUZ .
    not so long

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