
The "shareholder spring", which has seen UK institutional investors rise up against corporate greed and 'rewards for failure', and which is named after last year's populist uprisings across the Middle East, has got off to a remarkable start

One of the features of the credit crunch era has been the rise in price of what are considered to be “safe haven” assets. We have seen this in currency markets for example with the rise of the Swiss Franc and the Japanese Yen which has overrun the efforts of their respective central banks to stop it. More recently we have seen in in the surge in prices in some government bond markets which allow those governments which benefit from this to borrow at what I consider to be extraordinarily low levels.

One of the clichés of real estate investing is that you can make more of everything but you can't make more land. The implication is that real estate has to be a one way bet. More people competing for a share of an asset that can't be expanded very readily must equate to constantly rising prices, or so the law of supply and demand might seem to suggest. The constantly increasing cost of office and residential property in the world's top cities provided an obvious case in point through the 20th century and for much of the first decade of the 21st Century.

Consolidation and rationalization of assets are set to be the main focus of mergers and acquisitions (M&A) activity for the consumer products sector over the next 12 months. This is according to a Deloitte survey of executives at major European consumer product companies.

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I was taken back by the vitriol that was leveled at Sir Mervyn King after his Today lecture last week (amusingly summed up in an earlier post by Shaun Richards of Mindful Money). The Bank of England governor, due to step down in 2013 after a ten-year term, was lambasted for a multitude of sins.

One of the astonishing features of the Greek elections on May 6th was the reaction of the markets. The German DAX index crashed from the mid 6600s down to 6370, then, by Tuesday morning, it had shrugged off the election results in France and Greece and returned to the 6600s. This might have been because investors realised that any consequences from the elections would take a while to play out, since forming a Government in Greece from a shower of fragmented parties, looks like being a long job. But it might also have been because the ejection of Greece from the eurozone, as and when it happens - a racing certainty since the election results demonstrate that the Greek population rejects the EU's imposed austerity - is views as a positive thing for the eurozone, if not for Greece.

There can surely be no-one who has not grasped that mid-April 2012 has brought with it not just another bout of euro-jitters, but a serious wobble in one of the eurozone's biggest economies, that of Spain. At the time of writing the rate on Spanish 10 year bonds was creeping up to unsustainable levels and the markets had begun to show considerable unease about the amount of Spanish government debt on the books of Spanish banks.

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Yesterday evening the Governor of the Bank of England gave a lecture for BBC Radio’s The Today Programme. Of course there is already an obvious weakness here as it should be Mervin King receiving a lecture for his (lack of) performance! This has been followed up by an interview on The Today Programme this morning. Governor King has repeated his usual trick of discussing matters in a broad sweep in an attempt to make himself look intelligent, magisterial and dignified. He invariably avoids detail as it is often inconvenient. You know the sort of thing, inflation which is invariably above target becomes on its way down to it. Even the casual observer has started to spot that it has supposedly been on its way down to its official target for quite some time now!
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