Written by Econintersect
Early Bird Headlines 13 June 2016
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Global
Surging yen sends Nikkei tumbling 3.5 percent ahead of BOJ meeting (CNBC) Asian markets ended sharply lower Monday, ahead of central bank meetings in the U.S. and Japan this week and amid jitters over the upcoming referendum on whether the U.K. would remain in the European Union.
Oil prices fall as economic concerns rise (Reuters) Oil prices fell on Monday, weighed down by Asia’s darkening economic prospects and a related strengthening in the U.S. dollar, which makes fuel imports for countries using other currencies more expensive. Yet, high Middle East tanker charting and strong car sales in China provided some support, traders said. Brent crude oil futures fell back below $50 per barrel, trading at $49.89 at 0644 GMT, down 65 cents, or 1.29%, from their last settlement. U.S. crude was down 64 cents, or over 1.3%, at $48.43 a barrel.
Bitcoin price smashes $600 barrier and leaps to trade above $650 in one day (City A.M.) The recent bitcoin price rally continued in full force this weekend, as prices smashed through the $600 (£421) mark and rose to trade above $650 in a single day on Sunday. Yesterday the price of a single bitcoin reached highs of $652.54, according to CoinDesk. By the evening, the cryptocurrency was still trading up more than five per cent on its opening price of $611.78. Bitcoin hasn’t traded above $650 since early June 2014.
The World Is on the Brink of Peak Fossil Fuels for Electricity (Bloomberg) The way we get electricity is about to change dramatically, as the era of ever-expanding demand for fossil fuels comes to an end – in less than a decade. That’s according to a new forecast by Bloomberg New Energy Finance that plots out global power markets for the next 25 years. Call it peak fossil fuels, a turnabout that’s happening not because we’re running out of coal and gas, but because we’re finding cheaper alternatives. Demand is peaking ahead of schedule because electric cars and affordable battery storage for renewable power are arriving faster than expected, as are changes in China’s energy mix. Econintersect: This view is not shared everywhere. See Renewable Energy Survey Results.
U.S.
Why The “Underground” Economy Is Growing (Talk Markets) The author says there is a part of the American economy that is not being measured by the official statistics, possibly by 1% of 2% greater growth rate than the 2% or so measured, on average, over the past several years.
Radical Islam accounts for few recent mass shootings – but also some of the deadliest (The Washington Post)
EU
Sweden’s warning to Britain: ‘If UK quits, it will spell end of European Union’ (Express) The June 23 poll could give other member states the courage to call for a vote and demand new terms, warned Sweden’s Minister for Foreign Affairs and Deputy Prime Minister Margot Wallstrom. Whether Britain votes to remain or leave it could still spell disaster for the EU, she said.
UK
Fintech helps to push foreign direct investment in UK financial services sector to highest level since 2006 (City A.M.) Foreign investors can’t get enough of the UK’s financial services market, with a report out today discovering that fintech has helped push foreign direct investment (FDI) to its highest level since 2006. The research by professional services firm EY discovered that, in 2015, there were 94 FDI projects in the UK’s financial services sector, which in turn generated 8,138 jobs.
British fishermen want out of the EU – here’s why (The Conversation) Of all of the industries affected by Britain’s membership of the EU, fishing is one of the most significant. The Common Fisheries Policy, which governs where fleets can fish in the EU and sets quotas to conserve fish stocks, is known for being incredibly unpopular. And our recent polling shows that this translates to a near unanimous desire among British fishermen to leave the EU. The following graphic shows poll results among UK fishermen:
BREXIT Polls at 55% – Will the Euro Crash & Burn? (Alternative Economics) Martin Armstrong points out that UK GDP has declined after joining the EU. He implies that it would have been better without the EU. (Econintersect: We doubt that is a provable proposition.) He also suggests the Brexit would start an unraveling of the EU.
London’s young renters are the only people in Britain spending over half of their income on rent, according to new research (City A.M.) Londoners are spending the vast majority of their income on rent, according to new research. The average cost of renting a one-bedroom home in London is £1,133 ($1,640) per month, which takes up nearly 60% of the average under 30’s post-tax income, nearly 10% over the national average. Rents have increased by 27% since 2007, outpacing a 16% growth in incomes.
