8 August 2019 FT — Articles to Read

8 August 2019


Question: According to MSN: Money, my divorce cost me over $17,000: These were the biggest surprises.  What were “these”?


Aggressive rate cuts and dismal data accelerate dash into bonds – Pg. 1

  • Invetors piled further into the safety of government bonds yesterday as fears deepened over the state of the global economy after a trio of central banks cut interest rates and data in Germany raised concern that it was heading for recession
  • US Treasuries, which have benefited from their “haven” appeal, extended their rally, with the yield on the 10-year note falling up to 11bps to 1.593% – the lowest level in nearly three years. Bond yields fall when prices rise
  • Gold, deemed another safe asset by investors, topped $1,500 for the first time in six years after rising 2%
  • The market moves came as central banks in India, New Zealand and Thailand signaled worries over a slowing global economy by cutting interest rates by more than expected
  • US Treasury yields have fallen about 40bp this month as trade tensions between Washington and Beijing have escalated
  • The market value of outstanding negative yielding bonds is now at a record $15tn,…


Indian central bank battles global slowdown with rate cut – Pg. 3

  • The Reserve Bank of India has cut interest rates for the fourth time this year, joining other central banks across the region in easing policy to battle an intensifying global slowdown
  • India broke with international convention by cutting interest rates by 35bps instead of the usual increment of 25bp, bringing its benchmark repo rate to 5.4%, the lowest in almost a decade
  • In India, the effects of a slowdown are already being felt in everything from the stock market, which suffered its worst July in 17 years, to a drop in car and motorcycle sales
  • The country’s claim to be the world’s fastest growing large economy was recently undermined after GDP growth fell to 5.8% in the first quarter of 2019,…
  • …widening global trade dispute will threaten India’s ability to grow at the 8% a year that the government targets
  • China’s decision to allow its currently to slide below Rmb7 to the dollar in response to new tariffs threatens India’s competitiveness as an exporter,…
  • In response India raised tariffs on a range of US goods, and last month introduced a budget that included stimulus measures as well as further tariffs. Separately, the central bank yesterday announced stimulus measures designed to boost lending to consumers and troubled shadow banks


Big Four purge risky audit clients – Pg. 11

  • The UK’s largest accountancy firms are stet to purge risky or unprofitable audit clients after a string of corporate collapses and scandals sparked increased regulatory scrutiny of the sector
  • Big Four firms EY, KPMG, Deloitte and PwC, and mid-tier accountants Grant Thornton and BDO, …
  • Auditors have warned that companies in volatile sectors, such as retail or outsourcing, and businesses that have faced criticism over their financial controls and governance were the most likely to be dropped


Answer: (1) Moving out ($3,000); (2) Refinancing car loan ($6,480); (3) Individual car insurance; (4) Separating phone plan ($350); (5) Title loan payoff (Prof Note: Article mentions the husband took out a title loan and wife had to pay it off); (6) State filing fees for divorce; (7) Therapy ($1,200)