As day two came to a close in Lough Erne, G8 leaders made progress towards tightening regulations on tax-dodgers, but remained eerily quiet on Syria
David Cameron won a hollow victory at the G8 summit this afternoon when the world’s most powerful leaders were able to agree to a set of core principles with which to combat corporate tax evasion. The joint declaration will ensure governments share t...
The IMF suggests the rise of a “three speed economy”; the EU is in the slow lane, the US in the middle and emerging markets in the fast route
At the recent IMF Spring Meetings, experts highlighted the discrepancies in the growth rates of countries around the world. PwC, who six months ago coined the term “two-speed economy”, has revised its analysis to include a third speed lane. “Whilst ...
With Mark Carney having been appointed Governor of the Bank of England, the first non-Briton to hold the position, many anticipate that his progressive methods will help revive a moribund economy. But he’s not without his critics.
Mark Carney’s reputation as a leading economist has been earned through the use of enterprising, if sometimes controversial, reform; it was with just such measures that he guided Canada, his home country, through the global financial meltdown. He has ro...
It’s not uncommon for companies to pay over the odds for coveted acquisitions, but Rio Tinto’s disastrous record of misevaluation and carelessness under Tom Albanese is difficult to beat
Following an imprudent error of such magnitude that it tarred Tom Albanese’s last few years at Rio Tinto, the CEO stepped down in January of this year. Far from demonstrating the necessary precision and acumen required of mining sector acquisitions, Alb...
With Argentina’s economy in dire straits, the country urgently needs a change in direction. Instead, President Cristina Fernández de Kirchner has trod the populist path by nationalising private assets and picking a fight over the Falklands
First elected as Argentinian President in 2007, Cristina Fernández de Kirchner began her term riding a wave of popularity. The election wasn’t even close, with Kirchner winning 45.3 percent of the vote, over double that of her nearest rival. Her husban...
After a century of unprecedented ideological and financial success, innovation and technological development has plateaued. Could this signify the demise of innovation-driven growth?
When George Stephenson invented the steam locomotive and then went on to build the Stockton and Darlington railway in 1821, he changed the way people and merchandise got around for good. Less than 100 years later airplanes were crossing the Atlantic, and ...
Political change and expansion drive presents opportunities for private equity deals in Japan, as Shinzo Abe rings changes. But with Japan’s record over the past two decades, investors remain cautious
The private equity market in Japan is set to see a significant upturn in activity in the coming year as a consequence of the relaxed regulatory policies being implemented by new Prime Minister Shinzo Abe. The Prime Minister was sworn in to office at th...
Bernard Arnault loves to catch friends and enemies off guard, though much of the time his surprises are far from welcome, writes Selwyn Parker
That’s how French business magnate, art collector and, most notably, Europe’s richest man conducts himself on a daily basis as the method by which he’s built up LVMH, arguably the world’s greatest purveyor of luxury goods. Arnault is once again...
Slow progress following the 2010 earthquake has led dissatisfied aid providers to reconsider support
When the last tremor of the Haiti earthquake faded away in January 2010, it left some 300,000 dead and about the same number of wrecked homes in its wake, not to mention the destruction of schools, hospitals, government buildings, roads, lighting and just...
The Democratic Republic of Congo needs to make better use of its natural resources to adequately support its growing population, says Eustache Ouayoro, Country Director at the World Bank
The signs are there, although they are still somewhat tentative, that the Democratic Republic of Congo (DRC) may be emerging from its many years of conflict and instability and navigating its way towards a new development era. It cannot come soon enoorder...
Watch World Finance’s exclusive video coverage from the floor of the 2012 FELABAN Assembly, in Lima, Peru
Watch World Finance's exclusive video coverage from the floor of the 2012 FELABAN Assembly, in Lima, Peru...
The Indian economy has faltered in recent years, as international investors remain sceptical of the country’s potential. Can a series of reforms jump-start growth and entice much-needed capital into the country?
Generally considered second only to China as the economy to watch going into the 21st century, India has long offered huge potential but little tangible evidence of becoming an economic powerhouse. Since government policies during the 1990s liberalised th...
Jules Gray reports on another high-profile example of corporate whistleblowing, shedding light on the need to offer employees incentives to come forward
When an employee at an organisation becomes aware of serious malpractice, the chances of them doing more than turning a blind eye for fear of serious consequences are usually very slim. Having the courage to actually stand up to bosses and co-workers is o...
As Russia makes history with WTO accession, Europe considers a greater role in trade finance deals. Landmark ECA and PXF contracts, though, are still dominated by the private sector
Historic news this August, as Russia officially became a member of the World Trade Organisation (WTO) after 20 years of negotiations and debates over preferential treatment for domestic manufacturers. A spate of major deals involving its oil, petrochemica...
India’s government has recognised the need for a better education system, and so has started investing heavily in primary and secondary eduction. But is investment alone the answer?
Clip on a harness, lift your legs and hurtle down a wire towards the sharp corners of a 15th-century Rajasthani fort. As you whizz, you might have a few niggling doubts. Was the zip-wire serviced by someone who knew what they were doing? Is the safety adv...
European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...
Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.
In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.
A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.
A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.
While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.
Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.
Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes.
Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.
There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.
Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.
8 February 2007
HSBC warns of subprime mortgage losses
2 April 2007
New Century goes bus
14 September 2007
Wholesale markets have dried up
17 March 2008
Rescue of Bear Stearns
7 September 2008
Rescue of Fannie Mae
15 September 2008
Lehman Brothers file for bankruptcy
3 October 2008
US congress approves $700bn bailout
14 February 2009
$787bn stimulus approved by congress
The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve
The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks. The embargo lasted five months, and the effects are still seen today.
1923 – 1924
The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.
The Great Crash
Recovery and Recession
After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.
The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.