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Dangerous housing bubble in China

China’s housing bubble is starting to look a lot like the US before the crash

China’s property market is staging a major turnaround as property prices in tier-1 cities have heated up quickly over the past few months. For the first quarter, residential prices in Shenzhen are up nearly 80% year-over-year, while those in Shanghai were up by roughly 65%, according to figures cited by Capital Economics analysts.  Sat., 30  April 2016. 

Germany and ECB debate on low rates

Draghi defends ECB as Merkel enters low-rates debate

The head of the ECB robustly defended its cheap money policy on Thursday against sharp criticism from Germany, as the country’s leader entered a debate that has driven a wedge between the euro zone’s central bank and its biggest economy.  Thu., 28  April 2016. 

French company scores huge Australian submarine contract

 France’s DCNS Wins $39 Billion Australian Submarine Contract

Australia snubbed a bid from Japan to award one of the world’s biggest defense deals to France’s DCNS Group, opting for a contract that will generate jobs in Australia and minimize a backlash from its major trading partner China. The French offer for the A$50 billion ($39 billion) contract to build 12 submarines trumped those by Japan’s Mitsubishi Heavy Industries Ltd., Kawasaki Heavy Industries Ltd., and Thyssenkrupp AG of Germany. DCNS will build the fleet in Adelaide and the project should create about 2,800 jobs, a point Prime Minister Malcolm Turnbull made in announcing the winner Tuesday ahead of an election expected in July.  Tue., 26  April 2016. 

TTIP trade deal

Germans rally in Hannover against US-EU talks

German police estimate that more than 30,000 took part in the peaceful protest rally in Hannover. Many carried placards with slogans that read: “Stop TTIP!” The demonstrators have also been voicing their anger over the secrecy surrounding the ongoing TTIP negotiations. “The TTIP between the American continent and Europe is very dangerous for the democracy, for our nature and for the rights of the workers,” protester Florian Rohrich told the BBC.  Mon., 25  April 2016. 

China’s debt binge

Soros Says China’s Debt-Fueled Growth Echoes U.S. in 2007-08

Billionaire investor George Soros said China’s debt-fueled economy resembles the U.S. in 2007-08, before credit markets seized up and spurred a global recession. China’s March credit-growth figures should be viewed as a warning sign, Soros said at an Asia Society event in New York on Wednesday. The broadest measure of new credit in the world’s second-biggest economy was 2.34 trillion yuan ($362 billion) last month, far exceeding the median forecast of 1.4 trillion yuan in a Bloomberg survey and signaling the government is prioritizing growth over reining in debt.  Thu., 21  April 2016. 

Huge Chinese investment fund for start-ups

Chinese government’s startup investment fund is bigger than the GDP of Denmark

Chinese government’s startup investment fund stands at $337bn (£236bn, €299bn), larger than the GDP of Denmark. Stick that in your accelerator programme and smoke it. During a conversation at Money 2020 Europe in Copenhagen, Neal Cross, managing director and chief innovation officer of Singapore’s DBS Bank was emphatic about exactly where the epicentre of fintech was happening. He said a lot of people have yet to grasp the awesome scale of innovation taking place in China right now.  Wed., 20  April 2016. 

Who will buy Yahoo?

Bids due ahead of earnings

The Yahoo fire sale should reach a turning point this week. Any company with an interest in buying all or part of the troubled Sunnyvale, Calif.-based Net company is expected to have its bids in Monday. Dozens of companies are said to be interested in Yahoo — some published reports suggest as many as 40 — including Verizon Communications (VZ). Mon., 18  April 2016. 

Brexit could cost The City 100,000 jobs

Leaving the EU could put at risk up to 100,000 financial services jobs by 2020

A UK exit could also reduce the sector’s contribution to the economy (GVA) by 2020 by up to £12 billion (a reduction of nearly 10%), compared with a projection based on the UK remaining in the EU. Fri., 15  April 2016. 

EU seeks more tax details from big firms

More tranparency

The European Union has unveiled plans to force large companies to disclose more about their tax affairs. They will have to declare publicly how much tax they pay in each EU country as well as any activities carried out in specific tax havens. Tue., 12  April 2016. 

Negative Interest Rates

IMF defends negative interest rates despite risks

The IMF on Sunday defended negative interest rates set by central banks, given “significant risks” of slow growth, while acknowledging potential for dangerous boom-and-bust cycles. Mon., 11  April 2016.