US retail sales have failed to see the rise that most economists, and the US Federal Reserve, confidently forecast at the beginning of the year. The theory was that lower oil prices would stimulate discretionary spending, and ensure that the long-promised economic recovery finally arrived. But September sales were up just 0.1% versus August, and […]
Tag Archives | UK housing downturn
London house prices are one of the major faultlines in the debt-fuelled Ring of Fire created by central banks stimulus policies: It is crazy to have created a situation where potential buyers are asked to pay hundreds of thousands of pounds to buy even very basic apartments in unfashionable area It is complete madness that […]
“Year after year we have had to explain from mid-year on why the global growth rate has been lower than predicted as little as two quarters back.” That was the comment, last August, from the new deputy chairman of the US Federal Reserve, Stanley Fischer. This year, he won’t have to wait until mid-year to start the […]
‘Nothing succeeds like excess’. That seems to be the motto of London property developers at the moment. According to researchers LonRes, developers are currently building or planning the staggering total of 54000 new luxury homes in central London. These will all be offered at prices of £1m ($1.5m) and higher, according to the Financial Times. Yet just 3900 […]
The UK no longer leads the world in soccer, as next month’s World Cup will confirm. But it can still hold its own when it comes to creating house price bubbles. China would be the obvious winner of the World Bubble Championship, with Shanghai prices at an eye-watering 29 times average earnings. But London would have […]
One of the blog’s major themes is that it fears the idea of a quick V-shaped recovery will prove wishful thinking. New figures from the Bank of England seem to bear out its caution. The slightly complex chart shows that net UK lending for mortgages (yellow line, then red diamond) has been falling steadily since […]
The UK is expected to build just 135,000 houses this year, compared to 203,500 in 2007. This is the lowest level since 1924, when 87.000 houses were being built (excluding the war period). The outlook for 2009 is also poor, as many current projects date from before the start of the financial crisis. In turn, […]
Another day, another rescue. This time on the other side of the Atlantic. HBOS, the UK’s largest mortgage lender, with a 20% market share, announced this morning that it was being rescued via a merger with the Lloyds TSB bank. The deal was brokered by the UK government. UK Finance Minister, Alastair Darling, told the […]
Every 3 months, the Bank of England publishes its Inflation Report. This is packed with useful charts and commentary on just about every aspect of the world economy. It also normally includes the Bank’s own indicator of where UK house prices are headed. This is based on surveys by the Royal Institute of Chartered Surveyors, […]
Yesterday the UK public had a rare view of what the government really thinks about future house price trends. Photographers snapped Housing Minister Caroline Flint arriving for a Cabinet meeting. And then journalists went to work on reading the notes in her hand. Contrary to official statements, it seems that the government expects ‘sizeable falls […]
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Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry.
The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts.
Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.