Author Archive: Economist

rss feed

Author's Website

Why Volkswagen's share price has fallen so far

Why Volkswagen's share price has fallen so far

ON SEPTEMBER 21st, the share price of Volkswagen (VW), the world’s largest carmaker by units produced, fell by 17% in just one day. Investors dumped the firm’s shares after it was accused by America’s Environmental Protection Agency (EPA) of cheating emission tests on its diesel-powered vehicles. Although Volkswagen’s chief executive, Martin Winterkorn, has apologised for faking the […]

September 21, 2015 | By | Reply More
Modi's bumbling aviation boom

Modi's bumbling aviation boom

INDIA is the fastest-growing aviation market on the planet, according to the International Air Transport Association (IATA), an industry trade group. No thanks to government. After being elected last year on a pro-business reformist ticket, Narendra Modi, the prime minister, is back-peddling on his administration’s pledge to modernise the sector. After 15 months in power, opined […]

September 21, 2015 | By | Reply More
Carmaker is accused of fiddling emissions tests

Carmaker is accused of fiddling emissions tests

AMERICA has long troubled Volkswagen. The German carmaker, which vies with Japan’s Toyota as the world’s biggest, has never made much of an impression in the land of the gas-guzzler with its small saloons and hatchbacks. Despite selling over 10m cars a year worldwide VW’s market share in America is a paltry 3.5% despite frequent […]

September 19, 2015 | By | Reply More
Three economic crises, cutting rates and banning cash

Three economic crises, cutting rates and banning cash

ANDY Haldane, the Bank of England’s chief economist, has given some of the more thought-provoking speeches of any central banker in recent years (see here and here). His latest effort is bound to capture a few headlines, not least because it heads off in three separate, but interesting, directions. The first is to ponder what […]

September 18, 2015 | By | Reply More
The zero rate trap

The zero rate trap

SO THE Federal Reserve didn’t push the button after all. All the speculation and the debate will now have to focus on October or (more probably) December for the first increase since 2006. On balance, we feel this was a sensible decision; the Fed didn’t want to join the ranks of banks that tightened too […]

September 18, 2015 | By | Reply More
Why good jobs numbers may never be enough

Why good jobs numbers may never be enough

THE Federal Reserve’s interest-rate-setters opted for caution when they voted not to raise rates at today’s meeting. On some measures, things look better than when the rate-setting committee last met in June. The committee’s median growth forecast for 2015 has risen from 1.9% to 2.1%. Unemployment has fallen faster than expected, to 5.1%. But with […]

September 17, 2015 | By | Reply More
Global concerns mean the Fed leaves rates unchanged

Global concerns mean the Fed leaves rates unchanged

THE world will have to wait for the first American rate increase of the Twitter and iPhone age. Citing concerns about the global economy, the Fed decided to leave rates unchanged at 0-0.25%. Jeffrey Lacker was the one Fed governor to dissent, arguing for a quarter-point increase. In the run-up to the announcement, investors seemed […]

September 17, 2015 | By | Reply More
Death and transfiguration

Death and transfiguration

EDWARD GIBBON, the great English historian, begins his “Decline and Fall” with a glowing portrait of the Roman Empire in the age of Augustus. The Empire “comprehended the fairest part of the earth”. Rome’s enemies were kept at bay by “ancient renown and disciplined valour”. Citizens “enjoyed and abused the advantages of wealth and luxury”. […]

September 17, 2015 | By | Reply More
Welcome to the Promised Land

Welcome to the Promised Land

REPORTS in April that Roman Abramovich, a London-based Russian businessman (pictured), had bought a hotel in Tel Aviv’s posh Neve Tzedek neighbourhood for 100 million shekels ($25m), probably to convert into a private home, caused barely a stir in the local business community. The owner of Chelsea Football Club is only the latest in a […]

September 17, 2015 | By | Reply More
Progress without profits

Progress without profits

“WHEN my hair gets long, I kind of look like him.” Matei Zaharia jokingly evades the question about what he thinks of being compared to Bill Gates. But the 30-year-old Romanian-Canadian computer scientist is indeed reminiscent of Microsoft’s former boss in his early days: he is considered one of the most brilliant geeks of his […]

September 17, 2015 | By | Reply More