The End of Austerity?

The End of Austerity? By Filipe R Costa We're living in a year of extremes. Record high equity prices, record low oil prices, record low inflation levels, and even record low Olympic swimming times. But the biggest extreme is effectively the extent to which central banks have pushed their monetary policies, stretching their policy tools to the limits, setting record low interest rate levels and purchasing record amounts of financial assets. Activist monetary policy has become so entrenched in investors' minds that some now believe we're moving to a new investment paradigm, grounded in zero interest rates, very low real rates of return, and near-zero inflation levels, which appear to be here to stay for the foreseeable future. For the last 30 years, central banks have been very effective at keeping inflation levels under their radar whilst leading interest rates to single digits. The independence of central banks from governments and the move from "monetary targeting" towards "inflation targeting" allowed central banks to increase their effectiveness. But during the last few years, we have also witnessed a progressive shift from fiscal policy towards monetary policy as the main economic adjustment tool… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,879.42, a decrease of 15.18 points. The FTSE 250 rose 9.52 points to finish at 18,025.97. The FTSE All Share dropped 5.69 points to finish at 3,750.71. The FTSE AIM All Share finished at 795.19, up by 3.53 points. Recent acquisitions have helped drug firm Dechra Pharmaceuticals (DPH) increase its revenues by 21.7% to £247.6 million during the year ended 30th June. The company reported a pre-tax profit of £14.5 million with management saying that prospects for the future were good and that the recent purchases had significantly improved their pipeline. Dechra shares rose by 100p to 1,400p. Don't miss our September issue! Click HERE to read. Energy specialist Flowgroup (FLOW) more than doubled its revenues for the six months ended 30th June as it booked sales of £41.8 million. Despite this, the operating loss widened to £8 million as the Flow Battery segment of the business continues to struggle and management look to reduce its cost base. Shares in Flowgroup ended the day flat at 11.88p after climbing earlier in the day. AIM-listed oil and gas explorer Pantheon Resources (PANR) saw its shares sink by 40.17% to 89.75p after the company announced that the drilling of a horizontal well at Eagle Falls had failed due to a series of equipment failures. The firm said that they had hoped to use the technique to improve recoveries, but will revert to vertical drilling in the future. Tomorrow's news today Berkeley (BKG) and Johnson Service Group (JSG ) will release interim results. Quote of the day "A dream doesn't become reality through magic; it takes sweat, determination and hard work." - Collin Powell Latest Stories Chart of the Day: UK Oil & Gas By Zak Mir Horse Hill has been such an epic story of billions of barrels, ramping, counter ramping, and intrigue that one would consider the whole situation as being a little too exciting for most small cap punters… Click Here To Read The Full Story The FED loses momentum again with 'Dusty' jobs report By Filipe R Costa After a quiet August, we are back to business as usual, which is 90% about following central banks and 10% about following everybody else. Almost one decade after the peak of the financial crisis, global markets still rely heavily on central banks… Click Here To Read The Full Story The Evil Diaries: Gulf Keystone, Pantheon & envious regulators By Evil Knievil Easy money? Lucian Miers phoned latish Friday afternoon and pointed out to me that I just had to buy Gulf Keystone (GKP) 6.25% bonds at 20.75 cents in Norway since they would convert into ordinary shares at 1.1p in seven weeks' time... Click Here To Read The Full Story Something for the Weekend – Le Crunch for Apple By Adrian Kempton-Cumber I know what you must be wondering. What sort of things do I ponder when I'm not thinking about the markets? Well, I'm glad you asked. Three things are playing on my mind… Click Here To Read The Full Story Chart of the Day: Cloudtag By Zak Mir One of the notable issues with bear bloggers, and indeed those who make negative calls on shares, is that unlike those who are on the buy side one rarely hears anything in terms of a mea culpa if the call turns out to be wrong… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. 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