Investment Markets Overview – w/e 17 Jan 2014

The UK banking sector was headline news this week and not just over the rightness or wrongness of bankers’ bonus’s, which are suggested to be heading towards 200% of salary for a selected few including at the tax-payer owned Royal Bank of Scotland. A more important point, that of the size and concentration of the UK banking sector, has been raised by the opposition Labour party as the battle-lines are being drawn ahead of the 2015 General Election.Britain has one of the most concentrated banking systems in the world, with just four banks controlling 85% of small business lending,” according to Labour’s leader, Ed Miliband, going onto to say, “we have to get to the root of the decades-long problem in British banking: too much power concentrated in too few hands,” promising a cap on the size of any UK bank, including proposed new entrants should Labour return to power. Without delving too deep within the debate, an observation is that although the US has about 6,900 FDIC-insured commercial banks, the big five, like their UK counterparts, have the monopoly, so increasing the numbers doesn’t necessarily improve matters. Perhaps a wider debate should be about the very basis of the fractional banking system, and the monopolistic control of it by politicians and the bankers.  

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Subscribe to the Full Investment Markets Overview Newsletter which contains the following:-

additional commentaries:

  • US economic data . . .

  • Euro-Zone   . . .

  • The UK . . .

  • Out East   . . .

  • The $US index  . . .

  • Within the commodities complex  . . .

  • Economic data due next week includes  . . .

  • China’s effort to rein in runaway credit is being hampered by infighting between the central bank, the People’s Bank of China, and the nation’s banking regulator,  . . .

Charts:

  • Indices Weekly
  • US CPI Y on Y vs US PPI Monthly
  • UK Retail Sales Y on Y vs UK Retail Sales Ex Auto Fuel Y on Y
  • Australia Unemployment Rate vs TR/J CRB Commodity Index Inverted
  • Commodity 1 Week Moves

Table:

               13 Indices, 11 columns of detailed information, for accurate analysis

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“Forewarned is Forearmed
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Click  HERE to view Details of the full version of this Newsletter

which includes full text and detailed Charts for each section

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