World economy

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Energy: China’s Achilles’ heel?

BEIJING | China is thirsty of energy. It’s the world’s biggest consumer of energy and the second consumer of oil. The world’s biggest country needs energy more than anything in order to keep the engine of growth working at high speed. Furthermore, development and urbanisation plans might put their dependency on foreign resources to the brink due to an increasing need of energy to power its vast urban areas. So,…

WalMart DoTheMath

The United States: diminishing growth

By CaixaBank research team, in Barcelona | The US economy is leaving behind its vigorous start to the year and is on way to a weaker scenario than the consensus had expected at the end of April, after the publication of the gross domestic product (GDP) flash estimate for the first quarter. The main reason for this weaker tone lies in the loss of dynamism in the labour market’s recovery….


The bursting of the war bubble looms over the defence industry

An unwritten rule seems to warrant that US defence spending is kept immune to the ups and downs of the nation's GDP. The extraordinary dimensions of the current economic downturn, nevertheless, is testing its past resilience to any sort of moderation. Public investment in military affairs has largely been the result of foreign policy and global strategy, government cabinets since 2001 would surely protest from Washington. But a federal deficit…

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Goodbye to the American Golden retirement?

NEW YORK | Times are tough for pensions. Retirement plans are not golden anymore. After the crisis, U.S. companies started to get rid of many pension funds or are allocating less money for them. And while the market has substantially recovered from the 2009 low, pension funds portfolios as well as supplemental savings and retirement accounts for individuals remain significantly smaller than they were at their peak. Last year, Standard…

Ben Bernanke

Bernanke’s speech on Europe: reading the tea leaves

NEW YORK | Federal Reserve’s chairman Ben Bernanke attended his semi-annual monetary policy report to Congress on Tuesday and Wednesday, insisting that the Fed remains in close contact with European authorities but the alarms of spillover are still on. “I don’t think they [Europe leaders] are close to having a long-term solution that will solve the problem and until they find those long-term solutions, we’re going to continue to see…


British inflation draws a faltering economy

LONDON | Since the consumer price index began to record UK’s month on month inflation back in 1996, the downturn experienced in the clothing and footwear section from May to June this year has doubled the next largest decrease. The data, released Tuesday by the Office for National Statistics, brought inflation from 2.8 percent to 2.4 percent, while the retail price index fell, too, from 3.1 percent to 2.8 percent….

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How hard would killing off the euro be?

Depicted more often than not these days as the number 1 enemy of the global economic recovery, even we at The Corner cannot help but wonder the big what-if question: couldn't the European Monetary Union just manage to orderly dismantle itself before it causes further damages? After checking the figures from the Review of the International Role of the Euro paper by the European Central Bank, the answer is that…


Koala Capital’s Marc Garrigasait: “industrial activity is in full contraction”

By | How long will it take for the euro zone to finally set its mechanisms and tackle its imbalances? The euro country members only started to do some serious work in the last summit, said Marc Garrigasait, president of Koala Capital Sicav, in a conversation with VP. What feelings do you go through while watching your stock market monitors? I've never lived through a period in which not only…

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British Eastern Airways agrees to refinancing from Santander

Humberside-based air transport business Eastern Airways Europe said Thursday its future expansion plans are now backed up after securing refinancing from Santander Corporate Banking. Eastern Airways Europe is a regional air transport business operating in the UK and across Europe. The business was founded in 1997 as a service for oil and gas workers living in the UK and working offshore. Since then, Eastern Airways has evolved to provide transport operations…

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Japan’s recovery needs sustainability

By CaixaBank research team, in Barcelona | The upswing exceeded expectations with a first quarter GDP that grew by 1.0% quarter-on-quarter and 2.6% year-on-year. This momentarily places Japan at the head of advanced economies in terms of growth. However, the forecast for the whole of 2012 hardly reaches 2.5%, as the composition of the national accounts raises doubts regarding the sustainability of the upswing. Unusually, the growth of the first…