Economy

Economy

Dynamism and creative power of US markets guarantee long-term trend of strong growth, Berkshire Hathaway up 19% per year on average for 52 years, has outperformed S&P 500 every year, says Warren Buffet in annual letter to shareholders 

Danish smart phone company ID2me goes bankrupt after only one year, intended to challenge Apple and Samsung 

Burger King owner company buys Popeyes, acquisition includes 2,600 restaurants of which 97% run on franchise basis, price USD 1.8 billion 

Alan Greenspan says gold standard should have remained, policies were actual problem, says own decisions as Fed chief would not have been different 

Increasing share of children born out of wedlock partially explained by men's declining value on marriage market as opportunities for employment in manufacturing decrease 

US pharmaceutical companies worry over Trump's deregulation agenda, claims to be unable to sell products without government control process 

Kyrgyzstan central bank wants all citizens to own 100 grams of gold, bank facilitates purchases and sales of bars between 1-100 grams 

Snap Inc, the company behind Snapchat, set IPO valuation to USD 19.5-22.2 billion, despite user growth slowing 50% last quarter of 2016 

Market concentration growing problem while antitrust fines increase, regulations part of cause as well as technological shifts and network effects making more markets trend toward winner-takes-all 

Putin and Russian central bank in intimate cooperation to clean up corruption in banking system, estimated to require 3-5 years of takeovers, receiverships and closedowns, banks accused of hiding bad debt 

Apple market cap once more over USD 700 billion after strong January report and expectations for new Iphone 

Malta's economy forecast to grow above EU average, unemployment at record lows but shortage of skilled workers problematic, EU commission thinks open trade weakens country while state owned development bank strengthens 

Tenants in expensive cities oppose new housing despite theoretically being beneficiaries of increased supply 

Vincent Geloso: Growth in post-war period overestimated due to erroneous assumption that homemakers do not produce anything, value must be subtracted from GDP growth associated with transition to wage labor for married women 

Federal Reserve holding USD 1.75 trillion US mortgage bonds expected to start selling these in 2018, sparks worries of higher interest rates and pressure on the US mortgage holders 

WeChat expands payment between users to include gifts in gold based on prior currency based success when 300 million chat users signed up 

Book store chain Waterstones posts profit for first time in several years after comprehensive new strategy with focus on independence for individual stores and from large publishing houses 

European insurance federation Insurance Europe says new directive Solvency II sets too high capital requirements which can harm customers, insurance industry and entire economy 

Deutsche Bank places ad in several newspapers to apologize for misconduct one week after announcing EUR 1.4 billion annual loss, 7,000 lawsuits still ongoing 

Spotify on brink of bankruptcy after two cancelled IPOs, unpaid obligations converting into pricing discounts and 1.5 billion USD in debt making the company too expensive to acquire even for the largest potential buyers 

Sharp posts quarterly profit for first time in two years, new management has focused on cost savings and faster decision making 

Bitcoin faces crisis which requires political rather than technical solution, stakeholders will follow own interests rather than technical arguments, says Rick Falkvinge in interview with Cointelegraph 

Cinemas in US invest in serving alcohol to keep movie goers coming back, 32 states have lightened regulations in last two years but not New York due to heavy Broadway lobbying 

Increased ethnic diversity in California city councils leads to lower public spending and fewer votes for incumbents, points to disagreement leading to lower spending according to research published in American Economic Journal: Economic Policy 

Medicinal cannabis unicorn Canopy Growth Corp. changes ticker symbol on Toronto Stock Exchange to WEED, stock price has tripled in last 12 months 

Tesla Motors changes name to Tesla Inc as part of transformation to energy company in addition to producing cars 

War on cash example of classic baptists-and-bootleggers thesis, restrictions supported by defenders of nominal purpose to fight crime as well as profiteers of actual negative consequences, namely governments expecting larger tax revenue from digital money streams – difference from prohibition era in 1920s is both sides working openly and in collaboration 

Silicon Valley entrepreneurs not investing in art unlike previous generations of San Francisco elites, less materialistic and often do not own their homes, much less expensive interior decorations 

Russia's economic problems worse on a regional level, may result in increased tensions and fuel nationalist breakup of the country 

On date of payment, Apple does not pay Irish tax imposed by EU Commission, EU Commissioner shows understanding as total is 13.9 billion USD, Irish government has previously criticized European intervention 

Gold price up as market surprised a president actually does what he said he would do during campaign, according to market analyst at Oanda Corp in Singapore 

24 year old entrepreneur makes USD 345 000 in 2 months by beating crowdfunded project to market with stress cube 

Warren Buffett has purchased USD 12 billion worth of stock since election, sold stock worth USD 20 billion during 2016, according to interview with Charlie Rose 

Iran to ditch USD as currency of choice in reports for other currencies as sanctions have minimised trade with USA, greater value found in alternatives according to official report 

Venugopal Reddy, former central banker in India: Gold is the ultimate currency, part of Indian culture and acts as insurance for women, time for a new comprehensive gold policy 

Real estate prices fall in India after demonetization, cash shortages impede transactions but are good for middle class according to study 

Bitcoin wallet company Xapo gets approval to operate in Switzerland without banking license, joins self-regulatory organization 

Stock price up for Israeli security company Magal as hope grows to help build Mexico wall, has previously built walls between Israel and West Bank 

John Cochrane: Corporate taxation should be abolished since it is payed for entirely by consumers through higher prices and workers through lower wages 

Amazon enters ocean freight industry to improve control over their logistics, already owns trucks and planes 

EU to impose new import tax on Chinese steel, states intention to counter price dumping 

90 billion USD in commercial real estate debt to mature in 2017, analysts predict 13% default rate, worst off are suburban malls while high profile skyscrapers have regained since financial crisis 

Bank insiders sell 100 million USD worth of stock and 350 million worth of options in wake of Trump victory 

Toshiba crisis intensifies, losses in US nuclear power division 1.7 billion USD higher than expected, board expected to announce plan for breaking up company and sell assets 

Portugal's abundant lithium attracts Australian mining company planning to invest in local production of compounds for battery factories in Europe, high demand from car industry predicted 

Deutsche Bank's involvement in Banca Monte dei Paschi di Siena case lined with alleged suicides and accounting fraud, hid losses and transactions off-balance-sheet through corporate and derivative approach 

Central banks sell USD 405 billion of US treasuries, China's selling at its highest since 2011 while holdings at its lowest since early 2010, excess supply might force Yellen to reverse course if demand ebbs 

Strong decline in Indian diamond industry after war on cash, December imports down 4.7%, affects global market as up to 90% of uncut diamonds processed in country 

Jim Rickards: Desperate Fed might be forced to use 1934 "nuclear option" devaluing USD against gold, would increase commodity prices causing price inflation they thus far have failed to create 

Chinese exports decline by 7,7% during 2016, biggest annual drop since 2009, unchanged exports to US 

George Soros lost USD 1 billion on Trump's election victory, bet on a decline in the stock market 

Sanctions against Russia have cost EU EUR 17.6 billion and 400,000 jobs according to Austrian Institute of Economic Research (German)

Uranium prices near 12-year low after 41% decline last year, strong demand from China and India expected while Japan uses stockpiles 

Former CEO of collapsed MF Global Jon Corzine to pay USD 5 million in fines, no criminal charges despite USD 1.2 billion of client money used for speculations gone wrong in 2011 

First Majestic Silver may join class action lawsuit against silver price manipulating banks, CEO Keith Neumeyer in talks with legal team and other miners 

Venezuela issues USD 5 billion in bonds at 10 bolívar/USD while market values 1 USD at 3200 bolívars, bonds maturing in 2038 valued at 43% of face value 

Maersk Oil shut down production at Denmark's largest gas field Tyra which accounts for 90% of the country's gas production, finds no economic viable solution 

Spanish banks to return EUR four billion to customers for fixed minimum interest rate on variable mortgages in decision by EU Court, practice outlawed in 2013 

Credit Suisse pays USD 5,28 billion to settle US investigation into bad mortgage-backed securities, books USD 2 billion charge 

Peak gold production expected in 2019, new discoveries and reserves on decline, larger companies continue to buy up competitors 

Italy to inject EUR 20 billion into debt-ridden banking sector after Monte Paschi fails to raise funds 

Total market value of Bitcoin hits record high of USD 14 billion as Chinese yuan weakens, India demonitizes economy and global political uncertainty increases 

Italian bank Monte Paschi may fail to raise EUR 5 billion in capital, nationalisation feared, valued at EUR 478 million after stock collapse 87% this year 

Federal Reserve may crimp Trump's spending plan for growth by raising rates to contain inflation, Goldman Sachs says 

India surpasses UK in GDP for first time in nearly 150 years, driven by rapid economic growth over the past 25 years and decline in value of the pound last 12 months 

IMF chief Christine Lagarde remains at her post despite being convicted in French court of negligence concerning incident during her time as France's finance minister 

Uber's full-year loss may exceed USD 3 billion as exit from China crimps growth, Bloomberg says 

Apple challenges EUR 13 billion tax demand, claims European Commission ignored expert statement and used absurd method to calculate largest amount possible 

Maduro suspends discontinuation of bank notes after massive protests in Venezuela, blames delay of new higher denomination notes on "enemies abroad" 

Goldman Sachs settles for 56.5 million USD in rate-rigging lawsuit, several other banks to follow 

US Federal Reserve raises rates 0.25 percentage points, stocks fall — hints to possible more rapid rate increases to come 

Mobile manufacturer Foxconn gives 25% of workers paid leave, lack of cash halves demand in India, mass layoffs might be next measure 

Swiss National Council to discuss question of making banking secrecy constitutional, banks and initiative takers disagree on consequences (German)

EU Economics Commissioner Moscovici pledges that there is or will be no Italian banking crisis, says EU has capacity to handle situation 

Bill Gates, Jeff Bezos and 18 other big investors form new venture capital company to invest at least 1 billion USD in green technologies 

Bloomberg publishes excerpts from chat where banks conspire to manipulate silver price down, among them HSBC, Deutsche Bank, UBS, BNP Paribas and Barclays 

Japanese conglomerate Sumitomo buys Ireland-based Fyffes for 751 million EUR, is the largest importer of bananas in Europe 

Venezuela prohibits largest denomination banknote of 100 bolivar, will be removed from circulation within 72 hours prior to introduction of new banknotes, said to be a way to combat smuggling and fraud 

Rick Falkvinge: Fighting organized crime terrible excuse for war on cash, extremely beneficial to nation if free sector uses its currency  

Tristin Hopper: Emotionally more satisfying to donate cans of food than money to charities, but not rational from economic, logistical or timing perspective 

Trump names Gary Cohn to lead White House National Economic Council, third Goldman Sachs chief to get significant position in administration despite Trump claims of Clinton being puppet of company 

Gary North releases biblical reworking of Economics in One Lesson by Henry Hazlitt, also updates book according to recent findings and shifts underlaying ethics to foreground 

Kristofer Harrison: Tragic to see how Elon Musk has gone from world's most talented tech entrepreneur to crony capitalist par excellence  

Chinese direct investment in US climbs to record high of 18 billion USD during first half of 2016, mainly in real estate, tourism and technology 

Egon von Greyerz: Banking system will implode, USD 1,5 quadrillion of derivatives unsustainable, central banks will print desperately, hyperinflation arrive before new stable system can replace the current 

EU should decentralize and the euro should be abandoned, Europe not sufficiently homogeneous to be considered one single entity, according to 2016 Nobel Memorial Prize in Economics winner Oliver Hart 

Conspiracy among other banks to manipulate silver price found in documents from Deutsche Bank lawsuit, chat records between banks show market rigging 

ECB extends quantitate easing program, Draghi says program is open-ended and will continue until inflation targets are met 

China and Egypt sign currency-swap deal to strengthen bilateral trade, part of China's strategy to increase the use of it's currency in world trade 

Tyson Foods launches venture capital fund to invest in lab-grown meat and other alternative protein sources 

Chief economist of Saxo Bank names possible 2017 outlier events with high-impact potential – Bitcoin price triples, Brexit does not happen, EU-wide government bonds introduced, large bailout of banks in EU, cancelled payments on high-yielding bonds reaches record 25% 

EU fines Credit Agricole, HSBC and JPMorgan 0,5 billion EUR for manipulating Euribor, derivatives totalling 6,4 trillion EUR affected by cartel – Deutsche Bank, RBS and Societe Generale previously fined 

Russia increases gold reserves with largest purchase in almost 20 years, downturn in gold considered good opportunity to buy, only gold insures against political risk according to statement from Central Bank 

Goldman Sachs slashes Indian GDP estimate by 2.5 pp, 60% of transactions hurt by lack of cash as government discontinues large bills, purchasing index in freefall 

Pfizer ordered to pay 84,2 million GBP fine as UK competition authority sees 2,600% price hike as illegal overcharging, will appeal decision since new prize was still 25% lower than competition 

State controlled Royal Bank of Scotland reaches settlement with three financial institutional investors accusing bank of misleading share holders during financial crisis, to pay USD 1 billion fine 

Indian government's war on cash leads to closing of pawn shops, major blow to the poor as short term loans with gold as collateral are no longer possible outside banking system 

Worst month for bonds since the 90s, USD 1.7 trillion of value lost as 30-year-old bull market could be ending 

Indonesia suspends OPEC membership, didn't accept suggested cut in production, would as net importer of oil not benefit from higher oil prices 

OPEC reports first production decrease in eight years, lowers output by 1.2 million barrels per day, Russia expected to participate in plan despite not being member of oil cartel