Brexit talks turn ugly over Gibraltar

As previously discussed a few times, bitter over Brexit, the EU will now find ways to punish Great Britain and gun for Gibraltar and even the Falkland Islands. In regards to Gibralter, it will go on the offensive and support a separation, whereas with the Falkland Islands it will turn a blind eye.

 

Royal Gibraltar Regiment on parade outside Buckingham Palace in London (Photo: Defence Images)

 

Britain has said Spain can have no new powers over Gibraltar, as Brexit prompts hard talk on sovereignty, security, and borders.

“We will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes”, the British prime minister’s office said in a statement on Sunday (2 April).

The British defence minister, foreign minister, and the chief minister of Gibraltar issued similar comments in a debate prompted by the start of Brexit talks last week. Continue reading

CREDIT CRUNCH TWO? Fears for US economy grow as credit card lending reaches 9-year high

The US economy grew far less than expected in the second quarter of 2016 taking the annualised rate to just 1.2 per cent – below expectations of 2.5 per cent.

At the same time, credit card and overdraft lending has soared to its highest level since 2007. Continue reading

China aims to break U.S. hold in Asia with rival to World Bank

Beijing diplomats on charm offensive to rally support for new institution free from U.S. control.

China wants to set up a multilateral development bank in Asia to break the U.S.’s financial hold on the continent, the Financial Times reported Tuesday, citing officials familiar with the matter.

It said that Chinese officials have been touring Asia and the Middle East drumming up support for a new institution with $100 billion in capital, with a view to financing major development projects such as infrastructure. The FT said 22 countries across the region have expressed interest so far. Continue reading

Deutsche Bank to slash U.S.-based assets by $100 billion: FT

(Reuters) – Deutsche Bank has laid out plans to reduce its U.S. balance sheet as the U.S. Federal Reserve adopts new rules to shield the country’s taxpayers from costly bailouts, the Financial Times reported on Sunday.

The lender is expected to reduce its $400 billion balance sheet in the United States to around $300 billion in part by reassigning operations such as its Mexican arm and its Frankfurt and Tokyo-based repo businesses that are currently part of its U.S. business elsewhere, the FT reported. Continue reading

The Great Italian Auto Bailout — Courtesy of U.S. Taxpayers

At the beginning of 2014, Detroit may be bankrupt, but they’re cheering the five-year-old U.S. auto bailout in Italy. That’s because after being the beneficiary of billions in U.S. taxpayer largesse, Fiat, the leading Italian auto company, is going to buy its final stake in Chrysler from that other big bailout recipient, the United Auto Workers (UAW).

“Chrysler’s Now Fully an Italian Auto Company,” reads the Time magazine online headline. But wait a minute! Wasn’t the bailout supposed to be about saving the American auto industry? Continue reading

PRISM makes trade deal a mission impossible

“Data spying scandal threatens EU-US trade talks, headlines the Financial Times, reporting on the latest twist in the story about allegations the US intelligence service, the National Security Agency, routinely gathered phone records and tracked internet use of citizens in a surveillance programme called PRISM. The news emerged following a leak by a former Central Intelligence Agency employee who was named by The Guardian as Edward Snowden, 29. Continue reading

Germany Demands More Control Over Greece

Germany will allow Greece the extra time it wants to pay off its debt, in exchange for more control over Greece spending, according to a paper leaked to the Financial Times.

Greece’s creditors are agreeing to give the nation an extra two years to pay off its debts, according to several media reports. The extension will cost €16 to €18 billion. But the German proposal would subjugate Greece to tough conditions in return. Continue reading

Bank of Japan opens fire in currency wars

While the Federal Reserve under Ben Bernanke is holding off on additional quantitative easing measures, across the Pacific the Bank of Japan has initiated a new round of asset buying.

According to the Financial Times , the Bank of Japan has announced that more quantitative easing is being implemented in the island nation due to “slowing growth and persistent deflationary forces in the world’s largest economy.”

In the new round, the Bank of Japan will buy $61 billion of assets to inject greater liquidity into the economy as the “lost decade” lingers years longer than its name implies. In addition to the asset buying, the Bank of Japan is maintaining interest rates between zero and 0.1% .

With the recent move by China to relax controls on the yuan, currency devaluations continue to be implemented as a Keynesian response to recession by governments and central banks around the world.

Full article: Bank of Japan opens fire in currency wars (NASDAQ)