Economics
Why two thirds of the crisis was not our fault
By Valentina Magri It was mid-September when the two major economic events that have irreparably changed our lives occurred: the Northern Rock bank run in the UK (13th September 2007) and Chapter 11 for Lehman Brothers in the US (15th September 2008). In the Eurozone today Italy and France are sick and Germany does not feel very well. The UK is out of recession and the economy is in better shape than its European counterparts, even if some labour market issues have not...
Meet the ‘Challenger Banks’
By Mark Somers, Technical Director at 4most Europe The economic risks of a more fragmented banking system… Big banks are in decline. That’s what many politicians are trying to achieve and what some experts are predicting will happen in the near future; whether that speculation will ring true, only time will tell. But for the UK, a more fragmented banking system brings with it many implications both positive and negative in terms of the economy and of course, the consumer....
Africa Rising
By Ikràn M.Omar @IkranM Despite Africa's long prophesied ascension as the next economic powerhouse there are still questions to be answered on whether this could ever materialise. The main question is whether it is a safe and solid investment. To invest in anything there needs to be a prospect of a strong return. You can never to be too cautious when entering any market let alone an emerging one. As Africa ascends she is showing exciting growth that is attracting many investors....
China’s growing footprint in Latin America
By Rohan Chatterjee @RohanChatterje1 China’s exponential growth has brought it to the doorsteps of geographically separated and historically disconnected, Latin America and is fast on way to becoming a key trade partner and surpassing the United States as the continent’s most important economic partner. The key driver behind China’s expansion into Latin America is relatively simple: its growing demand for raw materials. Latin America not only offers the desired resources but also a potential market of 500 million people to...
Four letters that will energise America
By Robert Sun America is in danger of becoming the world’s first “derivative economy.” Once renowned around the world for our prodigious ability to manufacture, invent, and revolutionize, the U.S. is becoming a place where pastimes take precedence, image is king, and quick money is the goal. Eighty years ago, banking profits accounted for less than 5% of all U.S. corporate profit. In recent years they peaked at around 40%. College graduates are lured with the promise of making big...
Four reasons to worry about your job
By Valentina Magri All that glitters is not gold. ONS data released on August 13th for the second quarter of 2014 shows that Britain currently enjoys a record low unemployment rate at 6.4 per cent and an increase in employment (+167,000 persons). The jobs market seems to also be improving for youngsters aged 16-24; their unemployment rate fell from 19 to 16.9 per cent. In addition, the British economy is in better shape than any of its other European counterparts,...
The rounds
By Jack Peat I never imagined myself as someone who would begin a sentence "back in my day". It's the sort of cringe-worthy prelude you'd hear your parents or grandparents utter which meant for most children they’re either about to be bored by irrelevant nostalgia or lectured on traditional values, often both. But since the turn of the century we have witnessed such seismic change that I feel obliged to tell you, that back in my day, things were a...
Could London become the crowdfunding hub for the UK?
By Luke Lang, co-founder Crowdcube For many British businesses, raising finance has become increasingly difficult in more austere times with banks, VCs and other financial institutions reigning in their lending. In fact, raising money is difficult at the best of times, which has led startups and growth businesses to seek alternatives. Crowdfunding is still a relatively new concept, which has seen its popularity grow since around 2011 when the likes of Crowdfunder and Kickstarter first appeared in the headlines. In...
Rumours of the Dollar’s death have been greatly exaggerated
David Landon Cole The bitcoin - a currency based on a hash function - is often touted as the future and a recent article on The London Economic buys into that. I have a few objections with the piece that I'd like to look at. The premise for the article is an unattributed post on Reddit. The post claims that the US Federal Reserve commissioned research internally into the bitcoin, suggesting that it would overtake the mighty greenback between 2021...