INVESTORS in Britain and around the world have been sent into panic today after China’s stocks plummeted by 8.5 per cent – the largest one-day fall in almost eight years.
The FTSE 100 was in the red this morning after share indices in the world’s second-largest economy suffered their worst drop since 2007.
The fall in China is part of a wider slump in the country’s stocks that first began in mid-June, amid fears the China’s finance bubble had burst.
Previously China’s indices had almost doubled in the space of just a year.
The country’s Government had managed to briefly calm nerves with a raft of support measures, but today investors appeared to have lost all faith in official efforts to prop up values. Continue reading
A RUSSIAN banker who survived being shot six times in an assassination attempt in London could help police solve the murder of a political leader in his home country.
German Gorbuntsov has been living under 24-hour armed guard in the UK since the shooting outside his apartment in Canary Wharf in 2012.
But now police in Moscow believe the 49-year-old businessman could help them solve the murder of Russian opposition leader Boris Nemtsov, a strong critic of President Vladimir Putin, who was killed in February.
A German blitzkrieg force in Poland symbolizes Europe’s new military direction.
To half of the alliance, the Cold War is over. To the other half, it’s back on. Seventy percent of Poles say they view Russia has a major threat, according to a Pew poll published in June. For Germany, it was a little over half that.
This dissonance is at the core of NATO’s weakness. And it was exposed in last month’s Pew poll.
Collective defense is at the heart of NATO, under its Article V. But in only two countries out of the eight surveyed, did a majority say they felt they should honor that commitment: the United States and Canada. In Poland and the United Kingdom, those in support fell only slightly short of a majority. Continue reading
The crisis in the eurozone was set to escalate on Monday night after the Germans said they could not write off Greek debts without offering financial assistance to Ireland, Spain and Portugal.
George Osborne, the Chancellor, on Monday urged Angela Merkel, the German chancellor, to consider backing down to ensure there was not a “disorderly exit” from the eurozone.
He said “the situation risks going from bad to worse” and warned that “Britain will be affected the longer the Greek crisis lasts and the worse it gets”.
He suggested Britain could fly planeloads of euro notes to Greece to assist stranded tourists.
Several Western countries issued travel warnings for Greece on Sunday, as the Greek government shut down all banks and imposed capital controls following the breakdown of talks between Athens and the European Union. British and American citizens traveling or living in Greece were advised to have enough cash on hand, as ATMs were quickly running out of currency. In a late-night televised address to the nation, Greek Prime Minister Alexis Tsipras said banks would remain closed until July 6 –the day after Greeks vote in a nationwide referendum on whether to accept the bailout terms proposed to Greece by its creditors. Police tightened security around ATM machines, as lines were reportedly formed in petrol stations in the capital. Continue reading
The possibility of Britain leaving the European Union sometime in the future worries European bankers a great deal more than the prospect that Greece might be on its way out soon.
Britain’s inclusion in the EU is more important to the bloc’s long-term future than whatever happens to Greece, bankers attending a financial industry conference said, even as last-ditch talks aimed at keeping Greece solvent and avoiding a possible exit from the euro zone rumble on in Brussels. Continue reading
This is how the Fourth Reich is coming to be. If you’re still looking for Nazis, you’re 70 years too late. The German hegemony is conquering through other means.
“You have not anchored Germany to Europe,… You have anchored Europe to a newly dominant, unified Germany. In the end, my friends, you’ll find it will not work.“
– Margaret Thatcher
How right she was.
This video below may help one to understand some of the seemingly obtuse demands from the Troika with regard to Greece.
The video is a bit dated, but the debt scheme it describes remains largely unchanged. The primary development has been the creation of an experiment called the European Union and the character of the targets. One might also look to the wars of ‘preventative intervention’ and ‘colour revolutions’ that raise up puppet regimes for examples of more contemporary economic spoliation.
London: Germany has disclosed that it is making contingency plans for Greece to leave the euro as “make or break talks” are expected to end without agreement.
Wolfgang Schaeuble, Germany’s finance minister, said he was not hopeful that Greece and its creditors would reach agreement on the release of new bail-out funds.
With Greece set to default on a US$1.1 billion ($1.4 billion) debt repayment, Mr Schaeuble said that Angela Merkel’s government was making emergency plans for the country’s exit from the eurozone. Continue reading
The country’s room to manoeuvre really is almost gone
Greece is on the brink of crashing out of the eurozone. So what’s new? Haven’t we been reading headlines like that for the past three years. Continue reading
German tanks are rolling into Poland as part of a major Nato exercise as the US mulls over whether to deploy heavy weaponry in eastern Europe.
With its own currency, Greece would be able to support its banking system and even engage in QE
It is widely accepted that a return to the drachma, involving a major fall in the exchange rate, would, on average, impose heavy costs on ordinary Greeks. This may indeed be widely accepted, but it happens not to be true.
There is a serious lack of understanding of the economics of devaluation – even in some surprisingly high places. What passes for wisdom on the subject is heavily influenced by the experience with fixed exchange rates, which the UK, and most of the world, gave up in 1971-72. In the classic cases, when countries resorted to devaluation it was because of a “balance of payments” crisis, an excess of imports over exports.
The retrenchment of U.S. foreign policy under Barack Obama is triggering major changes in relations with formerly stout allies around the globe.
In Europe, Asia and the Middle East, trust in the Obama administration among U.S. allies is at an all-time low and reflected in numerous policy decisions, undermining one the America’s most important foreign policy assets.
For the United States, relationships with the United Kingdom, Japan and Israel have plummeted. The result is the pursuit by these nations of policies that are much less supportive than in the past of U.S. leadership and foreign policy priorities.
In the United Kingdom, David Cameron and his Conservative Party have just won re-election by a surprisingly large margin. The prime minister’s relationship with President Obama is best described as “proper” but there are no close personal ties like those that marked relationships between past U.S. presidents and UK counterparts. Continue reading
RUSSIA is likely to have gathered “valuable intelligence” on Britain’s nuclear programme which could put us at risk of attack, senior RAF officials have warned.
This has given opportunities for “intruders” which could “prejudice the security and effectiveness” of Trident, they said.
In a letter to a newspaper, the officers wrote: “The need to reintroduce Maritime Patrol Aircraft (MPA) into the British frontline is now widely recognised.
A senior official at the Bank of England “inadvertently” sent research assessing the economic dangers of the UK leaving the European Union to an editor at a national newspaper.
The Bank was left in an embarrassing situation on Friday after it accidentally emailed details – including how to fend off inquiries related to the report – directly to the Guardian newspaper.
A Bank spokesperson said that the error was “unfortunate”. Continue reading