HSBC bid ups Nedbank rating

first_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comAtlantic MirrorA Kilimanjaro Discovery Has Proved This About The BibleAtlantic MirrorTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastTrading BlvdThis Picture of Prince Harry & Father at The Same Age Will Shock YouTrading BlvdTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm Show Comments ▼ HSBC’S proposed acquisition of a majority stake in Nedbank received a ringing endorsement yesterday as the Fitch credit ratings agency said it had put the South African bank on a positive rating watch pending completion of the deal.Anthony Walker, a senior director in Fitch’s financial institutions team, said the acquisition “should serve to strengthen and expand Nedbank’s position in the South African banking sector [and] support its strategy of growing its African franchise”.The move by Fitch comes after HSBC on Monday confirmed it had entered into exclusive talks with insurer Old Mutual to acquire up to 70 per cent of Nedbank, beating off stiff competition from the likes of emerging markets-focused rival Standard Chartered.The deal is dependent upon Old Mutual gaining regulatory clearance from the South African Reserve Bank (SARB) to transfer £1.5bn of the proceeds of the sale over to the group balance sheet in order to pay down its debt.However, the group has appeared confident of its chances, with chief executive Julian Roberts commenting that the firm would not have entered exclusive discussions without anticipating clearance from regulators.Analysts have speculated that a deal would be struck at a premium of around 20 per cent to Nedbank’s current market value, meaning that HSBC may pay out anything up to around £5bn for its stake. The bank is eager to ramp up its presence in South Africa, which is currently negligible.Nedbank chief executive Mike Brown yesterday said he would be keen to stay at the helm of the company if the HSBC deal goes through. Tuesday 24 August 2010 7:18 pm Sharecenter_img Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof HSBC bid ups Nedbank rating KCS-content whatsapp Tags: NULLlast_img read more

Anglo relief as Ireland extends aid

first_img More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.com Anglo relief as Ireland extends aid Tuesday 7 September 2010 10:49 pm whatsapp Tags: NULL IRELAND extended its guarantee for short-term bank liabilities, including corporate and interbank deposits, as expected yesterday as the government sought to reassure investors about its financial position.The move came as Irish bond spreads hit fresh peaks amid renewed jitters about the health of the European banking sector piling more pressure on Ireland as it seeks to hammer out a deal with the European Commission over the future of nationalised lender Anglo Irish Bank.Dublin saved Anglo from collapse two years ago when it agreed to guarantee the liabilities of the entire banking sector and finance minister Brian Lenihan said yesterday that guarantee would be extended until the end of the year for short-term liabilities.With Ireland once again at the centre of European debt fears amid concerns over the escalating cost of bailing out Anglo Irish, there were real fears corporate depositors would pull funds out of Irish banks if the guarantee had been left to expire at the end of this month.Analysts said while the guarantee kept Ireland on the hook for its struggling banks, it at least gave them breathing space ahead of a crucial month in which they need to refinace around €26bn (£21.5bn) of funding. whatsapp KCS-content Show Comments ▼ Sharelast_img read more

Carlyle launches student housing investment push

first_img Monday 27 September 2010 8:11 pm whatsapp Carlyle launches student housing investment push Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily Proof CARLYLE Group, the private equity firm known for its large-scale investments in the defence industry, yesterday sealed a joint venture deal with Generation Estates, kickstarting its next big push in the student accommodation sector.Carlyle, led by co-founder David Rubenstein, and Generation said they had acquired one site in Highbury and Islington and are progressing work on a further three sites in London, to build an initial portfolio worth around £350m.The private equity giant believes student housing is an attractive long-term investment proposition due to excess demand and a shortfall of supply, particularly in London. There are currently over 260,000 full time students in the capital, yet purpose-built accommodation can only cater for around 16 per cent of them.The excess demand has led to long-term average rental growth of around seven per cent – a figure which grew to 10 per cent in 2009, Carlyle said.The firm expects the number of post-graduate and overseas students – a group which tends to favour secure purpose-built accommodation – to grow by around 15 per cent over the next couple of years. But it said current supply will struggle to keep up, with only 4,000 new beds due for delivery between 2010 and 2012. Show Comments ▼center_img KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailBern Healthy9 Worst Foods And Drinks For Your HeartBern HealthyLittle-Tricks.comLength Of Your Finger Reveals A Few Surprises About Your PersonalityLittle-Tricks.comBig Data Courses | Search AdBig Data Online Courses May Be Easier Than You ThinkBig Data Courses | Search Adsleeping7 Things That Happen To Your Body If You Sleep on Your Left SidesleepingBigGlobalTravel20 Of The Longest Celebrity Marriages – And Why They LastedBigGlobalTravel Share whatsapp Tags: NULLlast_img read more

CITY MOVES | WHO’S SWITCHING JOBS

first_img Share CITY MOVES | WHO’S SWITCHING JOBS Monday 25 October 2010 7:34 pm whatsapp LazardThe financial advisory and asset management firm has hired Fotis Hasiotis as co-head of the European financial sponsors group, based in London.Hasiotis joins from Bank of America Merrill Lynch, where he was head of EMEA financial sponsors. He originally joined Merrill’s New York team in 2004 from CIBC World Markets, later moving to London in 2008. He started his banking career at Bankers Trust.GartmoreThe fund management group has hired Vincent Houtteville as an investment analyst reporting to Chris Palmer, the head of global emerging markets.Houtteville has two decades of investment experience, most recently as a global financial services analyst at First State Investments. Prior to that, he held roles at Axa Investment Management, covering European financials, and with Scudder Stevens Clark in New York, focusing on insurance and banking.RathbonesThe investment management firm has appointed Sarah Tobey as an investment director.Tobey joins from Rowan Dartington, part of the Astaire group, where she was a company director with responsibility for private clients.Alvarez & MarsalThe professional services firm has boosted its European transaction advisory group with the appointment of Joop de Hoogh as a managing director, based between London and Amsterdam.De Hoogh has previously advised on numerous complex European cross-border acquisitions, disposals and refinancings, with a particular focus on the oil and gas industry. Prior to joining A&M, he headed up the oil and gas sector group within KPMG Advisory in the Netherlands and worked for several years at Shell.Tridos BankHuw Davies has joined the ethical and sustainable banking group as head of personal banking.Davies joins from Nationwide Building Society, where he has been savings product marketing controller since 2007.CapcoThe financial services-focused business and technology consultancy has hired John Quamina from IBM to head up its payments and transaction banking practice, part of the firm’s UK banking team. center_img KCS-content whatsapp Show Comments ▼ Tags: NULLlast_img read more

Starbucks raises forecasts as customers flock back

first_img Share More From Our Partners Biden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.org STARBUCKS raised its full-year profit forecast yesterday, boosting investor confidence its turnaround plan has ushered in a new phase of growth.Rising prices and improving traffic in its stores gave the leeway to hike its fiscal 2011 outlook. US sales at restaurants open at least 13 months jumped eight per cent in the fiscal fourth quarter from a year ago, driven by a six per cent rise in customer visits and a two per cent increase in spending per visit.International same-restaurant sales were up seven per cent, helped by a four per cent traffic increase and a three per cent rise in average ticket.Those factors, coupled with efficiency efforts and cost controls, prompted the company to hike its earnings target for the current 2011 fiscal year to a range of $1.41 to $1.47 per share, from $1.36 to $1.41 previously. Wall Street’s average forecast was for $1.43, near the low end of the new range. Net revenue grew more than 17 per cent to $2.8bn. “The increase really is based on the strength of the quarter we just recorded and the momentum we bring into the new year,” Starbucks chief financial officer Troy Alstead said. KCS-content Starbucks raises forecasts as customers flock back whatsapp Tags: NULLcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen Heraldmoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.com Thursday 4 November 2010 10:46 pm whatsapp Show Comments ▼last_img read more

Greene King posts “strapping” interims

first_imgFriday 3 December 2010 8:54 am whatsapp Show Comments ▼ BREWER and pub group Greene King today released interim results to toast, with profit before tax increasing 17 per cent to £73m.The better-than-expected results were driven by strong food sales and expansion of its managed pubs arm, and saw group revenues rise 4.2 per cent, to £484m from £464.5m a year earlier, in the quarter to 17 October. It also announced that Scottish division Belhaven, which outperformed with profit up ten per cent, will be fully integrated into the group to generate £1m in annualised cost savings.“Current trading remains strong, with Christmas bookings comfortably ahead of last year. Although we expect more challenging conditions in 2011, we are confident that we will continue to trade well,” said chief executive Rooney Anand.Alistair Macdonald, Execution Noble analyst, described the results as “strapping” and said profit before tax was well ahead of consensus estimates of £67m. “Current trading looks to be resilient with like-for-like sales in Greene King retail up 3.8 per cent for the 30 weeks to end November, implying that the two-year like-for-like trend from the first half has continued into more recent weeks,” he said.Suffolk-based Greene King operates both managed and tenanted pubs and is – like several of its rivals – pursuing a strategy of increasing food spend and its managed pub estate while reducing its tenanted pub estate.Managed pubs – where the owner operates the venue, often under a brand name, have proved more resilient in the recession than tenanted pubs as they can achieve greater flexibility and speed on promotions and more consistent levels of service and quality. Its managed pub division, the UK’s third-fastest-growing managed pub business, saw like-for-like sales growth slow slightly to 3.8 per cent from 4.6 per cent a year earlier, but like-for-like food sales increased 8.5 per cent.Its tenanted division, Pub Partners, stabilised with 0.4 per cent profit growth, while Belhaven, which it bought in 2005, achieved £17.5m operating profit.The group’s earnings per share rose 11.5 per cent to 25.2p from 22.6p and dividend was raised 6.8 per cent to 6.3p per share. Greene King operates 891 retail pubs and more than 1,500 tenanted or leased sites in the UK. Greene King posts “strapping” interims whatsapp More From Our Partners Inside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comMark Eaton, former NBA All-Star, dead at 64nypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comPuffer fish snaps a selfie with lucky divernypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comWhy people are finding dryer sheets in their mailboxesnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.com Tags: NULL Share alison.lock last_img read more

All-round positive outlook for 2011 worrying

first_img KCS-content More From Our Partners Police Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgWhy people are finding dryer sheets in their mailboxesnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgConnecticut man dies after crashing Harley into live bearnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comBill Gates reportedly hoped Jeffrey Epstein would help him win a Nobelnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com This is it – the last meaningful trading week of the year. This is the final opportunity for anyone wanting to move around a decent amount of stock or trying to place an order without sending prices haywire. The week when the futures and options expire and we all settle in to the two-week lull before P&Ls go back to zero and we all have to start again.So as we kick back and look forward to the seasonal re-run of The Italian Job, tins of Quality Street in the office and thrashing the Aussies in the Third Test, what market joys will 2011 bring us?No doubt the big themes of 2010 will once again dominate and continue to fray the nerves. Sovereign debt woes, Chinese economic bubbles and US Government balance sheets will be high on the list of worries as ever but, let’s face it, we rallied on equity markets this year with acute concerns on all these fronts. So why not next year?The analysts, and this may be a worry to many of you and to the analysts themselves, seem to be in accord. In accord that stocks and shares can rally nicely regardless of macro issues.“We forecast a 13 per cent gain for European equities in 2011,” say the European strategy chaps over at Nomura.The Credit Suisse team agree: “We forecast a 13 per cent rise in the global markets in 2011.”And over at Goldman Sachs? “Our portfolio strategy team’s end-2011 index targets envisage 14-29 per cent returns across the major equity markets…”So far in 2010 the FTSE 100 has produced a respectable rally of around 7 per cent, and an uptick of over 20 per cent from the July wobble. The argument for a continuation of the rally in the UK and across equities generally is based on several assumptions.HSBC sees UK earnings growth of 16 per cent in 2011. Nomura points to a more proactive deployment of cash flows with CEOs likely to increase organic investment as well as M&A. Nomura’s Ian Scott adds: “Crucially the market is starting to give the green light to more proactive uses of company cash flows.”Elsewhere, Goldman says a combination of better-than-expected growth and moderate inflation at a global level will be positive for risky assets. GS though believes the greatest risk to the positive scenario comes from the post-crisis fiscal overhang.So there you have it. One very unscientific sampling of 2011 expectations. One straw poll which clearly points to a bullish outlook for equities despite the questionable economic fundamentals.I for one am heartened people are looking on the bright side. I just wish it wasn’t across the board positivity. Markets have a nasty habit of making us all look a little stupid every time we get carried away. Anyone remember Marconi circa 2000?Steve Sedgwick is a presenter on Squawk Box Europe each weekday morning on CNBC. http://europe.cnbc.com Tags: NULL whatsapp Share All-round positive outlook for 2011 worrying Show Comments ▼ whatsapp Sunday 12 December 2010 10:31 pmlast_img read more

Northern Foods receives new approach

first_imgWednesday 22 December 2010 7:28 am Show Comments ▼ Northern Foods receives new approach John Dunne Tags: NULL whatsapp Sharecenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definition Food manufacturer Northern Foods said it received an approach from food tycoon Ranjit Boparan, boosting its shares, although it reiterated support for a planned merger with Ireland’s Greencore.Responding to a media report, Northern Foods, the biggest maker of Christmas puddings, said that Boparan Holdings approached it on December 17 requesting information. However, it has not yet made an offer proposal to the Northern Foods board.Boparan, a supplier of chickens to supermarkets and the company behind the Harry Ramsden chain of fish and chip shops, could be looking to threaten the proposed £510m tie-up between Northern Foods and Greencore announced in November. More From Our Partners A ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comWhy people are finding dryer sheets in their mailboxesnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comKiller drone ‘hunted down a human target’ without being told tonypost.com whatsapplast_img read more

Former Nomura VP sentenced

first_img Show Comments ▼ by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’Definition Tags: NULL Former Nomura VP sentenced Matthew Hinds, a former vice president of Nomura, has received a seven-year prison sentence for frauds that cost other businesses £50m. His accomplice, Ganendran Subramaniam, was given 11 years. The two men set up a scheme that involved creating false documents to obtain mortgages that they used to buy London real estate. Hinds was reported to police by his employer in 2007, when Nomura was contacted by a recipient of a false document on the bank’s letterheaded paper. whatsappcenter_img whatsapp KCS-content Read This Next’Pose’ Creator Steven Canals on Life After His Groundbreaking Show: ‘I’mThe Wrap’The Boys’ Star Aya Cash Took Inspiration From YouTube, TikTok and SteveThe WrapHow HGTV’s ‘Renovation Island’ Changed Bryan and Sarah Baeumler’sThe Wrap’Bridgerton’ Stars Phoebe Dynevor and Nicola Coughlan on Daphne andThe WrapBest Wine Gifts & Wine Accessories at Every PriceGayot’Hitman’s Bodyguard’s Wife’ Earns $17 Million 5-Day Opening as Box OfficeThe WrapFox News’ Mark Levin Says Capitol Riot Suspects ‘Would Be Treated Better’The WrapEverything We Know, or Think We Know, About the Time-Keepers on ‘Loki’The Wrap’The Crown’: What Went Into Finding Princess Diana and Margaret ThatcherThe Wrap Wednesday 12 January 2011 9:01 pm Sharelast_img read more

Why Ed Balls is a flawed economist

first_imgThursday 20 January 2011 9:07 pm Share whatsapp Why Ed Balls is a flawed economist Show Comments ▼ LIKE the cat who got hold of the cream, Ed Balls, the new shadow chancellor, could hardly conceal his delight yesterday. But in addition to being the culmination of a colourful tale of personal intrigue, Alan Johnson’s shock resignation will have an electric effect on Westminster. Out goes an amiable, reasonable but incompetent and innumerate shadow chancellor; in comes a combative, ultra-aggressive political heavyweight, a master at twisting statistics and devising economic policies to wage political war. The last residues of New Labour – that centrist, relatively pro-business, pro-wealth creation, version of social democracy – have been swept away. The Brownites now control a Labour party well ahead in the polls; the coalition is about to face a fresh onslaught. Ed Balls was the architect of Gordon Brown’s economic policies, his eminence grise, wielding massive power at the Treasury and imposing his brand of political economy onto virtually all domestic policy. Balls was as much to blame as his boss for the intellectual errors that crippled Britain’s economy. In the mid-1990s, Balls, who studied economics at Harvard, invented an entirely new framework to manage the economy and welfare state. He dazzled political journalists with his knowledge and grasp of numbers. He emphasised the need to maintain macroeconomic credibility and to pacify bond markets; it’s a shame he has forgotten these lessons today. Among Ball’s disastrous errors was his belief – straight out of the 1990s Harvard textbook – that central banks should be turned into agencies exclusively focused on targeting consumer prices, ignoring the money supply, credit and asset prices, and stripped of their traditional job of supervising banks and financial markets. The bubble delivered vast windfalls to the exchequer and house prices boosted consumer spending – but Balls, who thought stability would be maintained and boom and bust abolished thanks to his policies, had completely misunderstood how economies work.A corollary to this was Ball’s doomed tripartite system of financial regulation. He also created a set of fiscal policy rules that were meant to prevent excessive deficits and state debt – they were paper tigers, with definitions changed whenever the rules were about to be breached. Public spending surged from 1999, as did the regulatory burden. Balls also promoted off-balance sheet public sector accounting of a kind that would have made Lehman Brothers blush, with billions of debt hidden from view. An army of micro-economists was hired, placed in every government department and tasked with devising elaborate systems of incentives, tax credits, redistribution and ways of micromanaging behaviour. More people were added to the state’s payroll. In some cases, this was by hiking public sector employment; in others, by snaring millions into complex benefits; for many, work no longer paid. The outcome of all of this was to permanently cut Tory support while boosting Labour’s client state. Economics was politics; politics was economics. The way all policies were judged was redefined in Brown’s favour.Balls learnt all he knows about the relationship between chancellor and Prime Minister from the dysfunctional Blair-Brown duumvirate. That is why Ed Miliband looked so worried last night. Internecine Labour party warfare looms – and British politics is about to become much more [email protected] me on Twitter: @allisterheath by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldSenior Living | Search AdsNew Senior Apartments Coming Nearby Scottsdale (Take a Look at The Prices)Senior Living | Search Ads whatsapp KCS-content Tags: NULLlast_img read more