Consumer prices started rising in 2021, and the rise has quickly gathered speed. Many politicians and central bankers were caught by surprise. They initially claimed that price inflation was provoked…
The EU recently announced partial financial sanctions on Russia, designed to keep payments for energy moving. The EU accepted the contention – disproved below – that a bank either gets…
European growth stutters along as fear of deflation exerts pressure on the ECB to loosen monetary policy further.
A company is mismanaged when some indicators are in the red such as factory costs higher than those of its competitors; highly unprofitable activities; general and administrative costs much higher than those of its competitors; too many employees in too many locations; outstanding wages and incredible social benefits; various waste; assets sold at low prices and no return on investment; lack of reaction to badly needed reforms.
If the Banque de France’s 2012 financial statements are compared to those of the Bundesbank (German Central Bank), it can be argued that the Banque de France is very poorly managed.
The staff costs are higher at the Banque de France than in the Bundesbank! This is one of the conclusions of our comparative study “Banque de France vs Bundesbank”. On the one hand, 1.45 billion euros, in the other hand, 700 million euros! Regarding pension costs, the comparison also makes a significant difference: 440 million euros in France compare to the Bundesbank’s 100 million. With this precision: the Bank of France pensions are not funded …
The statistics tell us that recession is over. Yet, while this has triggered tapering in the USA, it has also prompted a new of ECB promises to keep interest rates low. In the meantime, EU authorities do not seem how to deal with the world of banking, which is far weaker than meets the eye.
GDP in the EU area seems to be growing, but at a very slow pace. Although financial market remain sanguine, the real estate sector presents a mixed picture, with bad news coming from heavily indebted countries. While waiting for better news, the authorities are devoting their attention to the rating agencies.
Six years after the crisis exploded, experts still find it difficult to come up with satisfactory criteria to evaluate the banking industry. The good news, however, is that regulators are gradually becoming aware of how banks succeeded in circumventing the rules.
In the two months since we last reported, the media has focussed on the rebound in the EU area, where in the second quarter GDP grew at an annualised rate of 1.1%. The atmosphere has been optimistic, so optimistic, that even the Aug 20 confirmation by Germany’s Finance Minister Schaueble that Greece will default again caused barely a ripple. Even the stock market wobbles over fears of military conflict with Syria were muted (Dow Jones down 4.4% in August). The roundly castigated term “austerity” has appeared only rarely. When it does get a mention it is always used pejoratively, to explain why certain countries continue to have problems. For example, Portugal’s July announcement that it needs to renegotiate its 2011 bailout package is blamed on previously implemented austerity.