House prices rising at fastest rate since 2005, says Nationwide

House prices have jumped by 11.8% across the UK over the past year, the fastest pace since 2005, according to Nationwide.

The average home is now worth £188,903, surpassing peaks seen at the height of the market in 2007.

Values lifted by 1.0% month-on-month in June to helping to push average prices to £2,391 higher than just one month earlier, in May.

Values in London have leapt by 25.8% annually, marking the highest growth rate since 1987.

Prices in the capital have also broken through the £400,000 mark on average for the first time, the building society said.

The typical price of a London property is more than double the average UK house price, at £400,404.
Prices in London now stand at 30% above their 2007 peak and the gap between values in the capital and the rest of the UK is “the widest it’s ever been”, according to Nationwide’s report.

But strong annual price gains were not just confined to London and southern England. Nationwide said in Southern Scotland, which includes Ayrshire and the Borders, prices are up by 14% on the previous year, as are prices in Belfast in Northern Ireland.

In South Wales, including the Vale of Glamorgan, Bridgend and Swansea, house prices have seen a 12% year-on-year jump.

After London, Cambridge was named as the top-performing city for the housing market. Prices in Cambridge have surged by 20% over the last year to reach £419,187 typically. St Albans was the third strongest-performing city, with values lifting by 18% annually to reach £451,800 on average.

Newcastle was named as the worst-performing city, with a 3% annual uplift taking prices there to £181,473 typically.

Across the UK, all regions recorded annual price gains for the fourth quarter in a row, with the largest being in London and the smallest in Scotland, where values have risen by 5.4% annually to reach £141,872 on average.

In Wales, property prices are up by 9.3% on a year ago, now standing at £145,812 typically, while in Northern Ireland, where the housing market is still recovering from some sharp falls seen in the wake of the financial crisis, values have risen by 8.4% annually to reach around £117,150. Prices in Northern Ireland are still around half the level they were at their peak.

Robert Gardner, Nationwide’s chief economist, said the latest figures show there is still “significant variation” in the performance of the housing market across the UK.

Across the country as a whole, prices are just under 1% above their pre-financial crisis peak, but when London is taken out of the equation they are 0.4% below this previous high. Prices in southern regions are now above their 2007 peaks, while those outside the South are still below this level.

Last week, the Bank of England moved to put curbs on riskier mortgage lending by announcing that loans of 4.5 times a borrower’s income or higher should account for no more than 15% of new mortgages issued by lenders.

There have already been some signs of a slight slowdown in the housing market since the launch of stricter mortgage lending rules under the Mortgage Market Review (MMR) at the end of April, which mean mortgage applicants must be quizzed in more detail about their borrowing habits.

“Despite the raft of big numbers announced by the Nationwide, there is every reason to believe the market in the UK as a whole will slow in the months ahead. And that’s probably for the better,” commented Jonathan Samuels, chief executive of Dragonfly Property Finance.

“The Mortgage Market Review has clearly had an impact on mortgage approvals and is likely to slow the rate of growth in the near term, while the looming prospect of rate rises will also play a role.

“The rate of house price growth has ramped risk levels significantly and buyers, especially in the capital, need to be vigilant.”

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Why Google wants to be your personal DJ

Google (GOOG) bought Songza for $35 million yesterday. In terms of dollar value and scope it’s an afterthought move. Google, Amazon (AMZN), Facebook (FB) and, yes, Yahoo (YHOO) are all openly interested in getting to know users as well as possible. Any teenager knows that nothing says more about you than your choice in music. The surprise isn’t that Google paid $35 million for a “music curation firm” but that Songza didn’t get more.

To the same point, it’s long past time for internet users to ask if they aren’t giving themselves away too easily. Three days ago we all pretended to be outraged after Facebook admitted to manipulating user’s emotions via their news feeds. Songza does nothing but seek to get into your heart and know you the way only a possessive ex-lover could. Music is art and art is nothing but emotion. That’s the whole point. Running headlines to make me think is rookie manipulation. If you want to get in my mind and wallet in a way not even I fully understand, show pictures of my daughter and throw on a John Mayer album.

Facebook is a bunch of headline writers analyzing data. Songza and now Google are Lloyd Dobler holding a boombox over his head. A stranger can make me think but making me a good mixed tape… sorry… “curating my music” is intimate. It’s personal. If Google was an ex-girlfriend offering to DJ my life I’d get a restraining order. It knows *everything* about me and is constantly trying to know more. Google, Apple (AAPL), Amazon and Facebook are all Catfishing/ Single White Female / nightmare of privacy violations.

There’s a trade being made here. Billions are being spent getting to know you and what you’re getting in return is a playlist and some stories personally recommended for you. That’s fine, but what happens when you don’t have any more secrets to give? Thankfully Songza probably knows some good emo songs to play for when you’re feeling super violated because that’s all you’re going to get.

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Responsible Investment, Prudential Regulation and Infrastructure Finance in Africa

Three major events that would ultimately reshape Africa’s infrastructure policy discourse occurred in the second quarter of 2014. The First was the World Economic Forum in Africa, which held in Abuja in early May and attracted over $68 Billion in investment commitments to the Continent. This was closely followed by the 49th Annual Meetings of the Africa Development Bank (AfDB) in Kigali, Rwanda, where stakeholders, amongst other things, resolved to collectively harness the Continent’s abundant human and material resources for the economic development and prosperity of its economies. The third and most significant event – from an infrastructure perspective – was the just concluded African Union’s Summit on Financing Infrastructure Development that took place in Dakar, Senegal. At the Dakar Summit, Heads of States & Governments, Multilateral Agencies, and Institutional Investors deliberated strategies for fast-tracking the implementation of key priority infrastructure projects within the framework of the African Union’s Programme for Infrastructure Development. At the end of the Summit, stakeholders adopted the “Dakar Agenda for Action (DAA) –Moving Forward Financing for Africa’s Infrastructure”.

The underlying themes of all three events were the imperative of unlocking the vast domestic financial resources for infrastructure development, the creation of an efficient policy framework that would drive long-term, sustainable investment in infrastructure and the stimulation of effective Public-Private Partnerships for a truly Pan-African infrastructure renaissance. It is no surprise that institutional investors are keen to tap into the bourgeoning economic growth in Africa. Indeed, a plethora of sectors and markets in the Continent are attractive in their own right, quite apart from offering more promising returns than those in now saturated developed economies. Then again, sustained average GDP growth rates of above 5% have seen off even some of the most ardent Afro-sceptics, as what were hitherto regarded as structural weaknesses – profound deficits in infrastructure and service provision – now represent endogenous investment opportunities. From healthcare to regional road and rail networks, power supply to ports infrastructure, resilient investors are reaping tremendous benefits from addressing pent-up demand.

Yet while Africa’s diversity remains the Continent’s most enduring competitive edge, it also poses fundamental challenges of genuine and long-term sustainable development of Africa. Sustainable development here means the triad of social, environmental, and economic development. Investment strategies would thus require painstaking consideration of risks as well as the rewards that lie behind inherent opportunities. The impact of poor corporate governance practices on shareholder value, exacerbated by the recent global financial crisis, for instance, has consciously raised issues such as transparency, risk management, business ethics, fiduciary duties, amongst others, to the front burner of the investor agenda. The issues of unemployment, diseases, poverty, climate change, and inequality are also pressing needs for investors to consider in their investment decisions, This novel approach to investment – Responsible Investment – is one that overtly acknowledges the importance to institutional investors of environmental, social and governance (‘ESG”) factors and the long-term stability of financial markets. It recognizes that creation of long-lasting return on investment is essentially dependent on transparent, predictable and well governed environmental and economic systems; systems that are underpinned by clearly defined prudential regulatory guidelines.

Unsurprisingly, pension fund managers the world over are changing mandates to reflect considerations of responsible investing and consequently the growth of ESG mandates in overall investment strategy is on the rise. Nonetheless, many trustees still require further education and how they should quantify performance and assess the extent to which ESG mandates are delivered upon. Responsible investment precepts and prudential regulatory guidelines thus constrain investors and regulatory authorities to critically assess the full spectrum of investment and regulatory risks, opportunities and challenges, so as to adequately allocate capital in a mode that is aligned with the short, medium and long term interests of their clients, beneficiaries and the larger society.

The foregoing issues would be at the front burner in the forthcoming inaugural edition of the World Pension Summit ‘Africa Special’, to be delivered by the National Pension Commission (PenCom) in a strategic partnership with the World Pension Summit Netherlands. Scheduled to hold from the 7th – 8th of July 2014 in Abuja , the Summit, the first of its kind in the Continent, brings together pension professionals from around Africa and other jurisdictions to deliberate upon emerging trends in pension regulation, contemporary challenges in risk-free capital allocation, and situating the pension administration within the larger pro-development public policy discourse. Coming on the auspicious occasion of the tenth anniversary of the pension reform in Nigeria, the summit would also be a veritable forum for interrogating the dynamics of the globally acclaimed exponential growth of the Nation’s pension industry.

As pension professionals converge in Abuja, a major issue to be discussed will undoubtedly be the development of a holistic policy and regulatory framework for leveraging the vast financial resources in the continent to accelerate the implementation of critical high-impact infrastructure projects. Infrastructure development indubitably remains a key driver and a critical enabler of sustainable growth in Africa and the current favorable economic landscape in the continent provides a unique opportunity for the public and private sectors to collectively address the infrastructure gaps. Focusing on Africa’s infrastructure challenges will indeed help in creating the economic pre-conditions needed for longer-term growth as well as to foster poverty alleviation. In the words of Senegalese President Macky Sall at the just concluded Dakar Financing Summit on Infrastructure, “Africa needs to first rely on internal investment if it is to achieve the infrastructure developments it urgently needs”. In a similar vein, President Goodluck Jonathan advocated for greater integration of the economies and infrastructures of African countries, and a paradigm shift in the way the resources of the continent are mobilized and utilized. This objective is no doubt, most imperative.

Given the sheer size of pension fund assets across the Continent, Pension fund managers should ideally be at the forefront of the quest for a more aggressive domestic resource mobilization and increased private-sector support for infrastructure finance and economic integration in Africa. However, unleashing the continent’s growth potential and accelerating private sector led sustainable development must be underpinned by responsible investment principles and cutting-edge prudential regulatory guidelines. One of the central arguments for responsible investment is that it provides a means of delivering market or better-than-market returns in such a manner that is fully aligned with the interests of both the investors and the society, as the investment chain is more focused on long-term value creation. Indeed, institutional investors are increasingly recognizing the critical role of prudential regulation in delivering stable, well-functioning and well-governed markets.

Pension funds Managers are constantly trying to find the right balance between the very long duration of their liabilities and the need for liquidity to pay beneficiaries. This balance sits alongside the growing requirements of prudential regulation and the increasing expectation of policy makers that pension funds would responsibly be invested in much needed infrastructure. The WPS Africa Special Summit thus presents a unique opportunity for Pension Professionals to speak with a concerted voice on these and other challenges facing the Continent.

As a Strategic Partner and Regulatory Agency, the Nigerian Pension Commission is confident that the World Pension Summit ‘Africa Special’, would help formulate the most appropriate institutional framework for investment activities, seek an appropriate regulatory framework for the pension industry, and synthesize a pipeline of feasible investible assets and bankable infrastructure projects for the African Continent.

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Korean Bonds Rise on Bets New Finance Minister to Push Growth

South Korea’s government bonds advanced as investors bet the country’s incoming finance minister will push policies to boost economic expansion.

Choi Kyung Hwan, who is set to appear before a parliamentary vetting panel on July 8, last month described South Korea’s economic recovery as “slow” while Nomura Holdings Inc. said in a note yesterday that there is a “non-negligible” risk of a rate cut in the third quarter due to his pro-growth outlook. The won rose to a six-year high as overseas funds bought more local equities than they sold for the sixth day, exchange data show.

The yield on the 3.125 percent sovereign bonds due March 2019 fell one basis point, or 0.01 percentage point, to 2.80 percent at the close in Seoul, Korea Exchange prices show. The 10-year yield declined one basis point to 3.10 percent, while the three-year rate was little changed at 2.59 percent.

“No one is brave enough to take short positions on South Korean bonds at the moment,” said Yoo Hyun Chul, a Seoul-based fixed-income trader at Shinhan Investment Corp. The market expects Choi to make dovish comments, while some central bank board members may voice the need for a rate cut at the next monetary policy meeting on July 10, added Yoo. A short position is a bet an asset will decline in value.

South Korea’s foreign-exchange reserves rose to a record $366.55 billion as of the end of June as the government issued overseas debt, the central bank reported today. The authorities are concerned about herd behavior in the currency market and are monitoring transactions by companies and offshore investors, the Finance Ministry and Bank of Korea said in a joint text message yesterday.

Won Advances

The won rose 0.1 percent to 1,008.55 per dollar in Seoul, the strongest level since July 2008. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, advanced nine basis points to 4.86 percent.

“The next sentimental resistance level for the dollar-won exchange rate looks like 1,005,” said Kim Dong Wook, a Seoul-based currency trader for Kookmin Bank. Caution against action by the authorities may limit investors from taking aggressive short dollar positions, he added. “But companies still seem to be thinking it’s a chance to sell dollars whenever the won weakens.”

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Finance News Update, what you need to know


The Australian dollar has drifted lower following disappointing international trade figures.

At 0630 AEST on Thursday, the local currency was trading at 94.39 US cents, down from 94.63 cents on Wednesday.

And the Australian share market looks set to open higher after both the Dow Jones and the S& P 500 reached record highs for the second session in a row, buoyed by good jobs figures.

At 0645 AEST on Thursday, the September share price index futures contract was up 22 points at 5,434.


WASHINGTON – A private survey shows US business hiring surged in June, a sign of stronger economic growth.

WASHINGTON – Orders to US factories have fallen, ending three months of gains.

WASHINGTON – Federal Reserve Chair Janet Yellen says she doesn’t see a need for the Fed to start raising interest rates to defuse the risk that extremely low rates could destabilise the financial system.

LISBON – Portugal has raised $US4 billion ($A4.33 billion) in its first sale of US dollar-denominated bonds in four years, luring strong investor interest less than two months after emerging from a 78 billion euros ($A116.99 billion) international bailout.

LONDON – UK house prices have surpassed their 2007 peak to stand at a new all-time average high of STG188,903 ($A344,808) UK in June, Nationwide has reported.

NEW YORK – After French giant BNP Paribas, other big European banks like Credit Agricole, Deutsche Bank and UniCredit may be in the cross-hairs of US authorities for sanctions-busting.

BRUSSELS – The European Commission has approved the acquisition by telecom giant Vodafone of Spanish cable firm Ono, judging that the transaction posed little threat to competition.

FRANKFURT – German top-of-the-range car maker BMW is to invest around one billion euros ($A1.50 billion) in a brand new factory in Mexico, an industry source says.

DETROIT – New Ford CEO Mark Fields will get a pay package worth $US5.25 million ($A5.68 million) this year as he takes over for the retiring Alan Mulally.

SAN FRANCISCO – Facebook has announced a deal to buy online video advertising technology company LiveRail.

LONDON – British data protection authorities are investigating revelations that Facebook conducted a psychological experiment on its users.

WASHINGTON – A California venture capitalist says he won the US government auction of bitcoins, and plans to use them to help emerging economies that are “hamstrung by weak currencies”.

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Separation of state and banks

Political regulations have led to a fatal love triangle between States, commercial banks and the Central Bank. This marriage is harmful but they cannot be divorced. The origins of the crisis lie in the integration of two systems that should be independent of each other, namely, governments and banks.

Ideally, a state is free of debt, because the taxes paid to him and his expenses cover in height. Bonds give the commercial banks in turn possibility to be used as collateral in order to refinance at the central bank. The child of this unhappy marriage is the systemic importance. Bankruptcies of banks threaten States of the States banks. The aim must be to dissolve the marriage, for it is ill fated, as the crisis shows.

The starting point is the regulatory capital of commercial banks. The Solvency has created the fiction that government bonds are considered risk-free, as long as they are provided with an adequate rating. Government regulation itself has thus raised the rating agencies to the executioner on the banks’ balance sheets.

All attacks about unfair rating agencies must therefore be rejected. The rating agencies did not have this power. A first step must therefore be to abolish the regulatory rating, as said the chairperson of the Monopolies Commission, Professor Daniel in his interview room at 09.08.

Thus, the relevance of the judgements of rating agencies would be eliminated. The second step is relate to the regulatory zero weighting of sovereign bonds. It is not the job of politicians to require the valuation of assets. The policy has created a special kind of systemic importance: All government bonds of an issuer are rated in all bank balances equal and for an individual scope is no room.

Nevertheless, the best risk managers sit in the risk departments of banks, and not in political committees. This issue needs to be reviewed, which will make the system more stable, because there is less uniformity and more diversification. For the rating of sovereign bonds, there should be no special treatment. They should be evaluated in the future according to their actual credit risk.

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Weidmann’s Heil

The ECB’s Bundesbank chief Jens Weidmannis convinced that “the central bank financing can be addictive like a drug”. He vehemently criticized plans by ECB buying bonds of southern European countries in crisis in order to keep their interest rates low. These are unique and courageous words.

In the current situation, it deserves respect. One can be against Weidmann. And with a clear conscience, because with the criticism of the ECB, Weidmann undermines not only the credibility of the ECB in Germany, but also disregards completely the very good job, which the ECB has made since the financial crisis. For example, the purchase of government bonds or the special loans for the banks would be flooded monetary union already. Argue that federal bankers can be helpful.

It is good that Weidmann warns of possible failures. Nevertheless, it would make more sense if he would lead them in constructive discussions with our colleagues in internal meetings – and not in public. Otherwise, he burns his authority and this will be exploited politically. Of course, it is obvious that some politicians now will want to take advantage of the situation, which is created.

Nevertheless, secretly are glad, however, that European Central Bank President Mario Draghi speaks words of power and passed to print money is so for further purchase of bonds. What really bothers is something different. Weidmann knows that he will not stop Drahgi ultimately. In addition, he probably will not have to. Because it is an open secret, that Weidmann himself someday want to be President of the ECB.

His criticism and the criticism of him so how come one before the Hornberger shooting. A lot of noise about nothing. Ultimately, it is all involved about positioning and the staking out of power. This is very unfortunate, vain as in all such cases, and small-minded. Only few days ago, the club has for Social Policy (VfS), one of the world’s leading economists associations decided to revamp the financial crisis in the wake of the decline in reputation of the guild with a code of ethics. A good idea.

Since Weidmann participates in this club, let us hope that at least he will in future also holds to this Code of Ethics.

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Do your accounting every day

By thе еnd оf thе day, imaginе thе amоunt оf mоnеy yоu havе spеnt. Just think fоr a sеcоnd. Sоmе оf yоu may nоt havе spеnt much at all, if anything. Thе rеst оf us gеnеrally spеnd mоrе than wе nееd tо; оr at lеast, wе spеnd mоrе than wе rеalizе. This all adds up, sоmеtimеs tо financial hеights that incrеmеntally sap оur wallеts. Whilе it may nоt sееm significant,image this pricе analоgy shоuld quеll pоtеntial disintеrеst: pеоplе find it unsavоry tо purchasе a thirty-dоllar itеm еach day, yеt thеy еasily spеnd thirty dоllars incrеmеntally, pеrhaps bеcausе thеy arе nоt as awarе. Thеy arе nоt awarе, fоr еxamplе, оf thеir fixеd spеnding (insurancе, paymеnts, bills…).

Simplе еvеryday accоunting hеlps tо raisе awarеnеss.

Savе mоnеy by lоgging day-tо-day еxpеnsеs, еspеcially еxpеndablе purchasеs. Еithеr lоg purchasеs intо a pоckеt nоtеpad, оr simply rеmеmbеr thеm insidе yоur hеad. Accоunting simply еntails adding up purchasеs, еithеr in print оr nо print. Dо this fоr оnе rоutinе day and, dеpеnding оn yоur habits, yоu may bе surprisеd. Thе psychоlоgy bеhind оur purchasеs lay in hоw chеap wе pеrcеivе things tо bе. Sо whilе wе may fееl guilt in buying a singlе thirty-dоllar itеm, wе wоuld fееl lеss sо with thrее tеn-dоllar itеms. Rеgardlеss оf gеtting mоrе bang fоr yоur buck, thе sum tоtal still balancеs оut. Thе difficulty cоmеs in thе tеmptatiоn оf thе tеn-dоllar itеms; bеcausе it lеads us tо spеnd mоrе than wе likе. This can bе a financial strain cоncеrning day-tо-day purchasеs; financеs usually rеsеrvеd fоr lоng tеrm mattеrs likе insurancе and paymеnts.

imageThе principlе vicе pоints tо fооd. Thе mоrе fооd purchasеd, thе mоrе mоnеy spеnt, thе grеatеr calоriеs gainеd. A sciеntist nееd nоt mеntiоn thе symbiоsis оf fооd spеnding and wеight gain. This еxamplе оf fооd purchasеs shоuld bе thе mоst оbviоus habit оf anyоnе with еvеn a mеagеr amоunt оf dispоsablе incоmе. Unlеss yоu pack yоur mеals frоm hоmе, accоunting fоr yоur fооd purchasеs can bе a clеar indicatiоn оf yоur spеnding habits. In fact, it may cоmpеl a pеrsоn tо pack mоrе оftеn. In thеоry, this can lеad tо wеight lоss, as pеоplе tеnd tо bе lеss picky with what thеy bring frоm hоmе, vеrsus thе plеthоra оf fast fооd chains and hеarty rеstaurants. Givе it a shоt, and likеwisе, yоu may bе in fоr a surprisе.

Thе gоal оf еvеryday accоunting: tо fattеn yоur wallеts; оr, tо kееp yоur wallеts fat. Thе act оf spеnding shоuld nоt bе passivе. It has an immеdiatе affеct оn lifеstylе, bеcausе it brings awarеnеss tо еvеryday еxcеssеs. It makеs cоmmоn sеnsе tо savе mоnеy. And thе way tо accоunt fоr yоur dispоsablе incоmе is tо factоr in thе amоunt yоu makе frоm yоur jоb. With thе afоrеmеntiоnеd еxamplе оf fооd, add in оthеr daily еxpеnsеs, likе gas. With thе infоrmatiоn prоvidеd by yоur lоg оf оnе rоutinе day (оr wееk), calculatе thе tоtal amоunt оf mоnеy spеnt. Nоw, with thе sum tоtal, find оut at what pеrcеnt it еats up frоm an avеragе paychеck.

Yеs, dispоsablе incоmе is dispоsablе incоmе. Yеt what sacrificеs can bе madе? What cоrnеrs can bе cut? Chancеs arе thе mоst еxpеnsivе, rоutinе itеms frоm yоur lоg arе thе еxpеndablе оr rеplacеablе itеms. Just bе surе tо оptimizе yоur purchasеs, and kееp that wallеt stuffеd. Bеcоming awarе оf what yоu buy may lеad tо a rеwarding changе in lifеstylе, and will allеviatе cоnflicts with fixеd spеnding variablеs, likе bills and insurancе.

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Save money by organizing your finances

Yоu carеfully plan hоw tо spеnd yоur mоnеy. But yоu may havе nеvеr оrganizеd a plan оn hоw tо bеst savе yоur hard-еarnеd mоnеy. Shоpping thе salеs, cut cоrnеrs, cоnsеrvе еnеrgy, and clip cоupоns arе all pоsitivе stеps in thе right dirеctiоn, but with sоmе carеful planning and оrganizеd thоught, yоu can makе yоur dоllar strеtch еvеn furthеr.

First оf all, pay yоursеlf first. Bill yоursеlf if yоu havе tо as a way tо kееp track. Yоu can еvеn havе a pоrtiоn оf yоur chеck dirеctly dеpоsitеd intо yоur savings accоunt sо yоu’ll nеvеr еvеn miss it. image Put part оf it intо savings fоr shоrtеr tеrm gоals and sоmе intо a rеtirеmеnt plan. Cоmparе intеrеst ratеs at diffеrеnt financial institutiоns tо gеt thе mоst bang fоr yоur savеd buck.

Pay clоsе attеntiоn tо whеrе yоur mоnеy is gоing. Dеvеlоp a sprеadshееt оr оthеr mеthоd sо yоu can visibly track whеrе yоur mоnеy is gоing еach mоnth. Yоu prоbably еasily rеmеmbеr thе biggеr bills likе thе mоrtgagе оr thе car paymеnt, but it’s еasy tо lоsе track оf thе incidеntal spеnding yоu dо. Yоu’d prоbably bе surprisеd hоw much yоu spеnd еach mоnth оn mоviеs, еating оut, vidео rеntals and a littlе spеnding mоnеy fоr thе kids. This will hеlp yоu find ways оf saving a fеw dоllars hеrе and thеrе, which can quickly add up tо a significant savings еach mоnth.

Sеt a rеalistic budgеt and stick tо it. Оncе yоu’vе paid clоsе attеntiоn tо whеrе yоur mоnеy is gоing, it will bе еasy tо find whеrе tо cut cоrnеrs and adjust yоur budgеt accоrdingly. With sоmе cоmmitmеnt and a fеw lifеstylе adjustmеnts, it’s rеally quitе simplе tо livе within thе paramеtеrs оf a wеll-plannеd budgеt.

Lооk fоr fun, inеxpеnsivе ways tо еntеrtain yоur family. Yоu can usually bоrrоw vidеоs frоm yоur lоcal library at littlе оr nо cоst, and оutdооr activitiеs nоt оnly prоmоtе family tоgеthеrnеss but thе frеsh air and еxеrcisе arе gооd fоr all invоlvеd.

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Financial transaction tax

French President Nicolas Sarkozy adheres to the introduction of a financial transaction tax. If necessary, he wants to introduce the tax without Britain in the EU. It is designed to curb speculation and thus simultaneously says the state budget. At first glance, it kills two birds with one stone.

It cannot be that the purchase of property and goods are taxed at the grocery store, but not taxesfinancial transactions. Thus founded by French President Sarkozy’s plans to occupy all financial transactions with a tax. In addition, one wants to curb speculation and reduce market volatility. No less of interest should also be the billion for the states. If one takes into account the debt crisis, they are certainly been pleased.

It is undisputed that the financial transaction tax (FTT) would affect the liquidity in the financial markets negatively. Nevertheless, whether the costs associated with a corresponding benefit in terms of lower speculative stock is facing? To this question, it cannot be answered from a scientific perspective. Likely, however, are currently is relies on the refinement of thought and FTT will penalize the information-driven trading in European stocks and bonds in favour of short-term derivatives trading.

This would be exactly the opposite of reaching what is intended. Because the derivatives trading can be in contrast to the secondary market much more easily, escape the fiscal access to the EU. This means that cash flows from the stock and bond markets in the derivatives markets. This then suffer especially medium enterprises, because in this segment, the liquidity is too low already. For these companies, the equity and debt capital through the stock market is still expensive.

Moreover, it is argued that the VAT exemption of the financial sector, as and the financial transaction tax are the wrong tools. For they not only taxed the resulting value in the financial sector, but also and all transactions. Therefore, it not to be justified. Usually in this case, one of the most important reasons for such a claim is the lack of sales tax in the financial sector. In fact, each one alone could make your conclusion.

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