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UK Economic Recovery- Tech Driven?

The UK economy took a little breather in the last quarter of 2014, with economic growth slowing down across many sectors.  However there were exceptions which demonstrate that certain areas of the UK economy are driving forward the recovery with others relatively stagnant.

One of the most important surveys in the last few weeks is that of the KPMG/Markit UK report which tracks various economic indicators.  It is particularly interesting to monitor the performance of the UK technical sector and compare it with other areas.   The UK Technical sector has been of increasing importance to the UK economy for many years and it seems that it growing by the year, the last quarter of 2014 demonstrated the highest performance gap for the last 8 years.

The tech sector continues to outstrip virtually every other sector of the economy, with new business gains, new products and even allowing for slow cost inflation (which can often effect demand for technical products).  Many new product launches helped perhaps inflate this difference but it has also resulted in a higher investment spending across the sector.

This is of course important to jobs as well and there is evidence of substantial employment increases to help fuel this growth.   Employment in the IT sector is also traditionally fairly well paid and can contribute to other sectors and overall growth of GDP.  The outlook remain positive, although perhaps with some slight reservations along with the rest of the economy.

There is no doubt that the IT sector is becoming in increasingly important to the UK economy.  There is also evidence that the pattern of employment in the UK is diversifying from the traditional roles.  There is much evidence to demonstrate  that more and more people are becoming self employed or working across several roles rather than the standard 9-5 one company employment model.   It is important to develop these sectors as they typically create highly skilled, adaptable and well paid employees.

One area which has shown a huge increase is that of people who leverage the internet to provide their main source of income.  Many thousands of people now do business purely online, with virtual businesses contributing a small but growing contribution to the internet.  Digital products and services like this from Ireland are bought and sold all across the world, providing income for thousands.

Jane Hallins

http://www.anonymous-proxies.org/

Russia’s Economic Prospects Look Gloomy

A couple of years ago, myself and several potential investors attended a presentation by a whole host of people and managers urging us to invest in Russia.  At the time it seemed like a very sensible thing to do, however a few short months later it’s looking like exactly the opposite.

The Russian economy doesn’t seem to have much to look forward to anymore with political and economic events combining to push it deeper into recession.  This week those prospects were underlined as Moody’s cut Russia’s debt rating yet again, bringing it down to ‘junk status’.

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Unfortunately these ratings often become a self fulfilling prophecy as the fall in ratings will inevitably affect capital investment and the cost of borrowing.  Standard and Poor have already taken this step and reduced the rating last month.  Both agencies predicted a deep recession which will carry on to 2016, consumer confidence is key with domestic demand also falling in light of such reports.

So what has caused Russia’s fall from economic prosperity so quickly? There are obviously many factors but most could be managed except for one – the fall in oil prices.   The market is now awash with oil due to the global recession and other factors like the US fracking boom – Russia’s economy is linked directly to the oil price which of course has plummeted. All of Russia’s other problems could easily be handled if there was a high oil price, there isn’t so it’s running a severe deficit until it recovers.

Much of the rest of Russia’s woes are largely self inflicted, the sanctions which have been imposed are due to it’s intervention in Ukraine’s territorial problems.   Unfortunately control and access to the media is tightly controlled, so there is significant spin on these events.  Although some Russians have access to other sources of news by using VPNs to access things like the BBC abroad – http://www.iplayerabroad.com/. Most people are restricted to the Russian controlled media.  This means that Russian’s are further likely to adapt a siege mentality when it comes to domestic spending.

The likelihood is that Russia will suffer further sanctions unless it pulls back in Ukraine, which at the moment seems likely.  Despite Putin’s rhetoric, the economy is likely to continue to decline over the next few years, especially with a major hike in the price of oil looking likely for a significant period.

Technical Reference

 

UK Economic Growth is Fueled by Consumer Spending

There are not many convincing recovery stories across Europe yet, but the growth being seen across the UK economy over the last 18 months is genuinely encouraging.  Whilst most European countries hover around 0% growth rate and many looking at more recession, the UK economy seems to be moving forward.

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However there is a worry that this might not be a sustainable growth and the recovery is simply being pushed by increased consumer spending.  Today the news is filled with hysterical shopping scenes as the American ‘Black Friday’ promotion is embraced by UK retailers, seems to add more evidence to this idea.

The problem is that growth that is completely dependent on consumer spending is not sustainable in the long run.  UK consumers can’t keep spending to maintain economic activity, without incurring debts and following the road that partly caused the crisis in the first place.   The Japanese economy has seen this type of growth in the 80’s when consumers would routinely discard their TV sets every year in order to purchase the latest model.

The growth in the UK economy is also combined with falling exports to the eurozone and some measures suggesting business investment is falling too.  Trade has actually caused a negative impact on growth for the last quarter, which suggests that this consumption is partly causing UK imports to rise heavily too.

If the Euro countries where expanding too, then this wouldn’t be too much of a problem, with consumer spending merely providing some impetus.  However as exports fall to the doom laden Euro economies, consumer spending simply won’t be enough.  Much of the UK’s recovery has been based on austerity measures which means that the wages of these consumers haven’t been rising either.

There are some encouraging signs that wages are starting to increase but nothing dramatic.  If the recovery filters into pay cheques then consumer spending might be maintained in 2015.  There are some interesting articles on this situation in the UK economic press and online media, you can access some of these by obtaining a British IP address – here.

There’s not yet a crisis in the UK economic recovery however it desperately needs an improvement in it’s main trading partner’s economies – across the channel.  Until that happens, the recovery and growth may not continue.

Joe Simpson

Writer on technology, entertainment and economics.

Source:http://iplayerusa.org/index.php/proxy-to-access-bbc-iplayer-abroad/ 

 

Food and water crisis in 3rd world countries

During the credit crisis all over the world and influencing so many of western people, there is some much more dangerous crisis happening in 3rd world countries in Africa and Asia. More than 783 million people don’t have an access to a safe water for drinking or using in their homes. What is more tragic – more than 2,5 billion people doesn’t have access to adequate sanitation. These are worrying numbers as it is more than one third of worlds population.

Food crisis has taken place drastically in recent years as the human population grows and it becomes hard to support it with food. There is not much land for agriculture left either. All this can lead to more than 30% of worlds population starving by year 2020 as said by World Bank. During the last 30-50 years tremendous amounts of forests in Africa, Asia and south America has been cleared to gain wood and land, however the land is not usable in agriculture for growing crops. Droughts in Africa lately has raised the food prices and the poorer people can not afford food and starve.

The threat is real and we in the west are directly responsible to some effect as the debt is owed to institutions and banks in the developed world.  Check out the reports and documentaries on this issue, there’s some decent reports from the British media particularly the BBC.  You will need to buy UK IP address to access the broadcasts from outside the United Kingdom.

Droughts have severe economic, nutritional and poverty effects. It is not only the 3rd world countries in the risk of food or water crisis. Nowadays because of weather change droughts are often developed even in US and Europe. Because of dry weather there has been incredible decrease of maize and soybeen crops in US. Therefor no one is protected. We have to think of better and more effective ways to produce food and grow crops. The forests and original biospheres should be saved as they help preventing droughts as well as produce oxygen.

In looking for better ways in producing food it can be always suggested to check  good baking tips for saving money, water and time. Such small actions could give a little but important benefit to everyone. Take a look at http://best-baking.com/ for some great tips on baking delicious cakes and other bakery products. Take your action and help fighting poverty now!

Czech Economic Programme produces Growth

Many have claimed these are long overdue, but the Czech Government currently working as a coalition have released it’s predictions for the period up to 2017. Overall it’s a fairly optimistic outlook, with public spending recovering without any increase in debt levels.  It is expected that this increase in public spending will largely be covered by higher growth levels.  There was some expectation about information on various efficiency drives and cost cutting initiatives promised by the coalition – unfortunately there was little about these.

For anyone who follows Czech economics and politics there will be little surprise that one of the hot topics is that of the level of Value Added Tax (VAT) being set.  This has been a major source of disagreement between the parties who make up this coalition.  It is thought that there will  be some sort of agreement with a plan to introduce a lower level of VAT in the near future.  In the interim period is it expected that the current rates will drop a single point to 14 and 20% respectively.  Many want these drops to be much higher as well as simplifying the current rates into a single VAT and removing the lower and higher rate levels.

Growth figures look encouraging yet unspectacular, it is hoped that the Czech economy will grow by 2.0 % in the 2015 period.  This is up a few ticks from the current growth rate of 1.7%, public deficit figure currently are running at 18 and look set to rise over the next year before falling back to a manageable 1.7% of GDP in 2017.

There are specific reasons that public spending has jumped over the last 12 months.  One of the major reasons is the end of certain measures in the country’s austerity programme.  This year sees the end of a public sector pay freeze, and increased wage settlements will pay a large part in the increase in the levels of the public deficit rise.  There are also several large infrastructure projects being initiated over the next few years, some of these supported by EU grants and loans.  Some of the most important are directed at increasing the country’s telephone and broadband infrastructure.  This is especially important as there is a growing need to support the digital marketplaces and economy – there are many encouraging start ups which could end up being the next Facebook or Twitter!

Henry Cavanagh

 

iPad and the Economics of the World

It was a huge deal when these were attempting to sell 1 million a month during those times. Now we understand that was a poor start.

Since its launch, Apple has offered nearly 200 million I pads. Apple continues to be losing market-share, really, but nevertheless has the majority of the tablet PC sector’s earnings. A superb summary of the landmarks of iPad history is found at the the app store website. The writer describes how a iPad clarifies how it motivated his mom to use both the web and a computer, and enlarged the audience for accessibility and on-line media.

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Another post is from 2010, the CBS Information report of the launch. An analyzer from Wired is quoted as stating “it will make the computer vanish.” Fundamentally, the report expresses the thought the iPad becomes a television set, a mag, a paper, a-game, a publication, and virtually other things that can be achieved with a data-stream.  If you combine with an VPN client, which are available from a wide variety of services like this

There was incredulity in 2010, that this is simply another gadget. The theory was adopted by some print companies. They launched the notion of reactive design for electronic content as an important tool because of their customer’s media installation strategy. Now all produced content has to take care of the extensive variety of communications and imaging all through media formats, from movie to packaging to signage.

Tablet PC aren’t going away, they are becoming better. The tendencies of cloud-computing, more affordable and quicker broadband, and expanding reliance on movie, future tablet PC, and smart mobile, increase is supported by all. Have you been participating? Is the company an important partner for making communications operate in as many formats as there is potential?

Further reading

http://thenewproxies.com/quick-ip-address-changer/

Canada’s Economy Restrained by Consumer Debt Levels

Consumer spending is restrained by a cooling housing marketplace and under performs the USA mainly due to large household debt amounts and Canada’s economic system will develop only modestly over the following two years, a Reuters survey found.

Those forecasting are virtually unchanged from January’s survey and lower than outlooks for the USA, which will be anticipated to increase 2.7% in 2014 and 3% in 2015.

Economists decreased their outlook for annualized increase in the 1st quarter of the year to 1.7% from 2.2% in January’s survey. Predictions for the remaining quarters of the year and the 1st half of next yr were virtually unchanged.

National demand, and in change, consumer outlay, has been among the significant reasons why Canada’s market recovered more rapidly in the monetary disaster than the USA.

That need was mainly a result of a housing boom, that has been fuelled by record-low borrowing expenses. Unlike in the USA, which endured a punishing house market crash, Canada’s home market has moved in a straight-line up for a long time.

But the home marketplace is now cooling-down, and a couple of market watchers remain worried about threats of an US-fashion crash. Along with high-flown home debt degrees, that’s created the Canadian customer more careful about disbursement.

Truly, Canada’s disposable home debt-to-earnings ratio reaches a close-record-high of 164.0%. By comparison, U.S. families reduced their indebtedness in the aftermath of the crash.

Economists in Wednesday’s survey anticipate Canada’s home market to continue to great.

Prognosticators anticipate that amount to fall farther to 172,000 houses next yr, compared with the 180,200 forecast three months past.

Canadian housing starts reached a yearly pace of over 200,000 in the price-fueled growth that adopted the monetary disaster.

Nevertheless, the majority are perhaps not worried about an out right crash.

“We nevertheless view that as a low chance threat now.

A substantial increase in the Bank of Canada’s key interest in the present 1.00% and a surprising fall in job would be two causes, Issa included. He does not anticipate either to occur.

Rising prices will climb up to 1.9% next yr, a contact away from the reserve bank’s 2 percent goal, the survey revealed. Nevertheless, another survey taken before this month discovered the banking isn’t likely to raise its key interest rate until the 3rd quarter of next yr.

Obviously this is just a basic economic summary and for up to date information on the Canadian economy, it’s best to check out the local TV and media sites.  To watch the main TV stations if you’re based outside Canada will require a proxy server to access them – you can find one here.

The greatest prospect for the Canadian market is an exporter resurrection, which will be anticipated to happen over the following two years as more powerful U.S. economic growth prospects to increased need for Canadian products – including electricity, automotive and mineral exports.

New governor of the Bank of England Mark Carney

A poorer Canadian dollar may also help by fostering exporters’ revenue in local currency periods. A Reuters survey ran early this month identified foreign trade strategists anticipate the money to weaken over the next 1 2 or even 3 months.

Trouble in Asian Markets

For anyone who takes an interest in global economics, our eyes have been largely looking at Western economies for tales of woe, stagnation and debt for some time.  But there are signs that this situation may be starting to reverse.

From our last post highlighting the recovery in the UK and some of the European countries we know turn our eyes to Asia where this week the major share indices all took a tumble.

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The problem seems to have come from the economic data being released from the two big players in the Asian market – China and Japan.   Both reports seem to be pointing towards a slowdown in the area.  The Hang Seng fell by nearly 2% and the Nikkei index closed down around 1%.

So what was in these reports to cause such a steep fall?  Well although it was not much of a surprise given the situation Japan finds itself in, the record deficit reported was still larger than expected.  What was probably more damaging though was that it’s 2013 growth estimates were revised down to combine with this bad news.

The startling figure in the Chinese figures was the fall in it’s export levels – a huge drop of 18%.  There were very few analysts expecting a fall of this magnitude and the markets took the news very badly indeed.   The Asian sell off was swift and heavy and even took down the linked Australian share index down 1% too.  There’s an interesting piece on the Newsnight programme currently available on the BBC website – I use this to watch BBC Iplayer in Ireland and

Most of the big miners took a hit, companies like BHP and Rio Tinto supply the raw materials that fuel the growth in the Asian market particularly China.  The hits were inevitable simply because the values of the metals fell in line with the news, copper fell to it’s lowest level since early last year.  Iron ore futures and steel also both dipped sharply in response to the publication of the data.

China is beginning to feel pressure on all fronts economically, and even reported that very rare event a trade deficit of about $22 billion dollars in February, only twelve months ago the corresponding figure was another surplus, an enormous switch in fortunes.  This is a sharp warning that the economic advantages that China has built it’s growth on are beginning to wane, you can only manipulate your currency value for so long and the competitive advantage of lower labour costs don’t last forever as an economy adapts.

Further Information on IP address Modification here.