It’s been a grim decade for Britain’s workers – their pay has been on the slide. But things are looking brighter for them now. Simon Wilson reports.
The government should forge ahead with plans to privatise Channel 4, says Matthew Lynn. And small investors should get first dibs on the shares.
The post A Channel 4 sell-off would wake up Sid and reinvigorate popular capitalism was first published on MoneyWeek.
The pig isn't the most surprising revelation from Lord Ashcroft's biography of David Cameron.
Merryn Somerset Webb talks to author Alex Perry about how the global aid industry is corrupting the continent of Africa and holding it back from realising its vast potential.
The Vuhl 05 is a promising start for the Mexican newcomer to the heady world of sports cars.
Central bankers must protect us from the evil of cash, says Bill Bonner.
Dan Denning on the approaching economic winter, the death of German prudence, and how China's bigwigs are getting round their country's capital controls.
If you're a whisky enthusiast, you can now invest in your favourite tipple through a new online platform. Matthew Partridge reports.
In this edition of the Capital and Conflict podcast, Nick and Dan are joined by special guest Ben Traynor, to talk about currency wars, Jim Rickards and understanding central bankers.
The post Capital and Conflict podcast: Currency wars, Jim Rickards and central bankers was first published on MoneyWeek.
MoneyWeek Issue no 762
Merryn and John discuss skewed incentives – why we can expect a more scandals like VW, why the aid industry is holding back Africa, and why big companies aren't as safe as investors think.
The post The MoneyWeek podcast: what VW and the African aid industry have in common was first published on MoneyWeek.
Past success doesn't mean future profits, says John C Burford. Trust the charts and be ready to change your position at a moment's notice.
The post If you want to make money, don’t marry your trades was first published on MoneyWeek.
Merryn Somerset Webb talks to Alex Perry about the opportunities in Africa's vibrant, innovative economy – and the corrupting influence of the global aid industry.
The post Alex Perry: Africa could thrive, if only the aid industry would let it was first published on MoneyWeek.
Wine expert Matthew Jukes reveals the trade secret to buying Chablis for your cellar.
It doesn't have to be a tourist hot-spot to have great food. Chris Carter looks at three forgotten destinations for food lovers.
Energy companies now have to tell customers about the cheapest tariff available. Sarah Moore explains what that means for your finances.
A London-listed fund has just been launched allowing investors to put their money in cybersecurity.
You'd think the fund lists recommended by the better-known online brokers would stand out in some way, says Sarah Moore. But you'd be wrong.
The post Online brokers’ recommended funds are not all they’re cracked up to be was first published on MoneyWeek.
There are good, long-term, defensive opportunities in China, says professional investor Sandra Crowl. Here, are three to tuck away in your portfolio.
A company's shareholders own shares they've bought in the same way they would own an umbrella they bought. But owning the company is a completely different matter.
Book review: Swimming with Sharks: My Journey into the World of the Bankers
Joris Luyendijk's behind the scenes take on life in the City is worth reading for its unique perspective, says Matthew Partridge.
Volkswagen has been rocked by revelations that it cheated in its US emissions tests. Matthew Partridge looks at what went wrong at the German car maker.
With news of running water on Mars, people are excited about space exploration again. That's good for the global space industry – and for those who invest in it.
The post Is there life on Mars? Maybe not – but there’s money in space was first published on MoneyWeek.
From a former mill in a secluded valley in Cornwall to a 15th-century village house in Castle Combe, Wiltshire.
Are automated advisors about to overrun the financial services industry? The world's biggest wealth manager is taking no chances. Cris Sholto Heaton investigates.
Labour leader Jeremy Corbyn has stuck to his guns, but many voters will find his policies hard to swallow. Emily Hohler reports.
Labour leader Jeremy Corbyn and Shadow Chancellor John McDonnell have seven economists advising them on economic policy. But who are they and what do they stand for?
The West flounders as Russian president Vladimir Putin pushes forward with his Syrian plans.
The FTSE 100 climbed higher yesterday, adding a further 0.2% to close at 6,072.
While Japanese stocks have had a summer they'll want to forget, don't write off the recovery just yet.
Stockmarkets can no longer count on the boost from share buybacks.
Recently in my son's junior school class, the pupils could nominate themselves to be the class rep, and put forward compelling reasons. Each put forward a sensible case, probably with assistance from keen parents. The class voted, and the successful candidate had simply offered everyone 'free sweets'. How very Corbyn, I thought.
Put simply...not paying off debt when interest rates are low, is like not fixing that hole in your boat, when the tide's out.
The main difference is most of the public sector bosses are not trying to influence our politicians through donations, sponsorship, loans, etc. unlike many large publicly listed companies and accountancy firms. I agree it is still jobs for the boys though.
Selling Channel 4 sounds like a sensible idea. It might even pave the way to making the BBC a commercial entity, which also sounds like a good idea. As the article says, the rationale for government-owned broadcasting is weaker these days, since we know that commercial broadcasters are viable.
Thanks. I STILL think, in the interests of balanced journalism, that the author might reply
The Bank of England is not private, but is owned by the government. True, it was created to fund the expansion of the Royal Navy.
Most small-time long-term landlords should have factored voids and rent arrears into their business plan before embarking on buy-to-let. But they could not have foreseen that their business loans would become non-tax-deductible, unlike any other business in the country.
The new tax should not apply to loans taken before it was announced.
And I am not a landlord, so have no vested interest.
I think your criticism is justified, it would seem that is take sensational commentary to sell their books.
Andy Haldane is simply thinking about acting as a communist. The reason why people are so concerned with paper money is that the Central Banks have stolen from them, abused their power and made horrific and devasting mistakes to people's lives.
For those who want to change the system really look at what YOU can do now, even if that is just using Bitcoin, barter or keeping gold etc.
Clearly being over leveraged when interest rates will rise at some point is a very bad plan. Not sure what economic forces will force rents down as Bengt seems to be relying on to draw the unconvincing premise that the article is based on.
Also likely that landlords might be vulnerable to future 'tax raids' by cash strapped governments, but so might pension rules etc etc.
The level of informed commentary from a range of money week writers on any property related topic over the last couple of years seem to show a disappointingly poor grasp of the actual processes/risks that actually drive property and seem consistently poorly informed and based on more of a tabloid journalistic view of the topic than one would expect from commentators purporting to understand markets, economics or finance.
The message always seems to be: If you have bought a property that is too expensive, in an area that might be in a bubble, with a limited understanding of market drivers in that area, giving very limited yield and have significantly over leveraged, at some time this millennium you will probably be in a heap of trouble. Totally agree. Not really rocket science, but seems to be about the level of almost every money week property article ever published!!
This will equally apply to any investor who has made consistently poor investment decisions across any other asset class. Occasionally the level of commentary in money week articles on assets such as shares gets to a slightly more informed and less 'tabloid' level. That wouldn't have anything to do with them having loads of equity based newsletters to peddle, but little to gain on developing an informed understanding of some other areas would it?
Totally one sided - bending facts to fit his own narrative. Clearly ignorant of what modern effective development assistance is all about - reforming government, supporting the private sector and building systems for health and education to allow people to shape their own destiny. Mpesa only happened because of Aid. There are debates to be had on how aid can be more or less effective. It is certainly true that done badly aid can be harmful. This black and white pathetic excuse for journalism takes us nowhere. Find someone who knows what their talking about and is capable of a more intelligent discussion.
Yes very easy they could resign!
Heard they are creating a quango to regulate the excessive use of quangos....
[…] Public sector pensions: you should be so lucky – But he also appears to be on the edge of retirement (in his early 50s!). That means he has a choice … PS We are also often told that we shouldn’t make such a fuss about public sector pensions, because the average pension payment is only around £ … […]
Interesting perspective. Related: the War Nerd on the problems of NGO intervention in the Tutsi/Hutu war in Rwanda. https://www.nsfwcorp.com/dispatch/tutsi-empire-interrupted, and Sarah Lacy's Brilliant, Crazy, Cocky http://eu.wiley.com/WileyCDA/WileyTitle/productCd-0470580097.html
I wish it was possible for Landlord to transfer their BTL into a crowfunding. I don't even use my capital gains allowance. This way at least, by selling in small pieces I can make use of it....
Plus it would make me a passive investor, rather then been actively involved in management.
On crowdfunding, I did noticed the yield on rents are around 2.5%. They seem to be selilng this on the basis that house prices are going up, but there is a risk house prices can go down.
I once had the temerity to suggest to a 'green' friend of a friend that the solution to the climate problem might be to apply technology to effectively scrub the atmosphere. She's wasn't pleased.
And why? I think she thought I missed the point. Consumption was the problem which was causing climate change. Well, I don't think so. Climate change is not about saving the planet. The planet will survive just fine. Its about saving us. In which case technology is a valid solution. And somewhere along the way, I admit, it would be nice to show my kids what a lion looks like when they grow up.
Technology in my view, is nothing more than a magnifier for human labour, much like capital.
So it is the solution to everything. The problem I have is when we don't adopt technology because it results in less profit. I don't really have an answer to that one. Morally I feel, it should always be profitable to feed the hungry, and I don't doubt we have the ability to do so, but we seem more interested in preserving numbers on balance sheets which seem to be fictitious anyway. Or at least questionable.
Apparently if we lose the Rugby, we will lose 3bn in stock market values. This is due to stock prices dropping a little? Or not being as high as otherwise? But if you don't buy or sell, the loss is never realised. Its a rubbish illusion that bears no relation to reality.
Why do we care more about this than about feeding everyone? Anyway, great article. The malthusian argument has long since been debunked.
In think LandOfC concedes too much by admitting every business is parasitic.
Most businesses take something and add value. You add value when you renovate; LofC's first point.
The second point is the scary bit. By merely buying something and then taking rent, you become a Rentier. You don't add value, but instead occupy a monopoly of sorts on houses in exactly the place you bought your house (a very localised monopoly).
You have joined the 'entitled' group and are taking income off the 'economic slaves'. (Sorry for the very colourful language.
Every day I commute 1.5 hours to get to work. I know when I do so that I pass many houses occupied by the older generation who bought their houses when London wasn't so big. Their house is now inside of London and represents an obstacle to me and my economic participation in London by having to pass it on my way to work. That's why that house is worth so much, and its value has nothing to do with the efforts or even the intentions of the people that own those houses.
Correct, there isn't a bottomless pot of money. So why is the government hell bent on making it more expensive for tenants?
Are all these tenants with credit problems, zero hour contracts or otherwise low paid going to magic up a deposit, qualify for a mortgage then clamber over each other to buy up homes as they come onto the market because landlords are selling up?
Are the first time buyers with their amazing first time buyer incentives going to race out and grab a new build home with finance they can't get because they don't qualify at reduced prices because developers will of course build without making any profit just to keep buyers happy.
I think most landlords or at least those who manage their own business know whats coming and hence they are requesting that the government actually has a think about what they are proposing. The only other solution will be higher rents. Just how much depends on the final draft of the reduction of the mortgage tax deduction.
As per my separate comment, there is an individual who corroborates this claim in the movie The Forecaster when he pulls out one of Armstrong's old laptops with the original files still on it. Though this individual closely connected to Armstrong, so not what I would consider "independent" confirmation.
Plenty, see this call from 2010 about the Australian Dollar reaching $2 against the USD. https://twitter.com/BullionBaron/status/511440258685095936
I have been wondering about that 1998 slide for several years since discovering it. Not really "proof" per se, but in the movie about Armstrong "The Forecaster" they power on a laptop from that era, running what appears to be Windows 98, showing what they claim is the original PowerPoint file, see screenshot here: https://twitter.com/BullionBaron/status/649697172141686784
Landlords; You assume the tenant has a bottomless pot of money with which to pay the rent which you unquestionably consider your right to demand. One day this will hurt Landlords, who will say "I never saw this coming".
You should have kept hold of your ten year old diesel if it was a Euro 3 model, the shenanigans started with the introduction of the Euro 4 standard around 2005 and the diesel particulate filter which is an absolute balls up of an invention that was then bolted onto every diesel engine since not just VW. The DPF needed fraudulent performance claims to make the market accept it but now we are stuck with something that does not work the way its supposed to and lumbers the motorist with higher fuel consumption and those that are not into diy a £1000 replacement cost when they go tits up which they are prone to do at anything after as little as 40,000 miles.
Difference between commodities and buy to let in the UK at least. There is huge demand for rental properties whether the economy is up or down. As a landlord you would be lucky to have an empty property which is ready to go for more than a few days.
I have to agree though that there are many 'New' landlords who are highly leveraged, it will only take an interest rates rise to normal levels to make many rentals not perform particularly well. Osborns tax on turnover will only result in tenants paying more rent to compensate for the extra tax expense on landlords as well as the market demand resulting from reduced supply, landlords who own the majority of their properties and are less affected will simply raise rents to market values. The only beneficiary of this will be the treasury. So they are setting everyone up for a fall. The government will use landlords as the scapegoat when everyone is complaining about un-affordable rents.
I have a buy to let in Birmingham and if anyone wishes to follow Merryn's advice I would suggest you buy in the center close to the rail station as possible. My investment has not been my best, it has been a long wait and I do not expect to be in profit for another 5 years. Birmingham is a city that has lost its place in the world the manufacturing base was decimated in the 1980's and nothing really has so far replaced it.
Just like Nostradamus, eh?
Most of us have made nominal money through rising house prices that will never be released because we need a roof over our heads.
Some of us have made a lot of real money (with the bank's complicity) in the BTL market. It was a window of opportunity that enabled quite ordinary individuals to tap into inflationary house prices relatively painlessly.
Fooling around with borrowed money to make more money without much effort is the preserve of a very small group of people, mostly working in the City of London. Did we really expect the gravy train to go on forever? Too many people have jumped on the train and it is in danger of derailing the housing market.
The government is making landlordism increasingly expensive. The next step will be an instruction from the BoE that banks should restrict their BTL loans to say 5% of their lending book.
I share your view that prosecution and imprisonment for senior executives who commit crimes would be a big step forward. I've spent a lot of time over the past few years investigating financial services crimes, and have reached the view that the single biggest obstacle to reforming that sector is that the Financial Conduct Authority is too close to those at the top of the firms it supposedly supervises, particularly the banks.
Both the Financial Services and Markets Act 2000 and the Financial Services Act 2012 contain well-drafted criminal offences relating to misrepresentation and concealment of material facts, carrying sentences of up to seven years. The perorations the FCA puts itself through to avoid charging senior figures at RBS, HBoS/Lloyds, Barclays and Capita have to be seen to be believed.
"However, given the overpriced nature of bonds generally, and the risk of
rising interest rates, we’d be reluctant to invest big in the asset
class at all right now, beyond a holding of the most liquid bonds for
asset-allocation purposes." Some examples would have been nice.......
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