Only Mario Draghi's ECB can avert global calamity before the year is out

Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after.

Gold still looks good – but miners look even better

Have you ever sat down and worked out your personal inflation rate? I have. The latest official statistics suggest that the consumer price index (CPI – the Bank of England’s official ‘target’ measure) rose at an annual rate of 2.8% in May. But I reckon my cost of living has risen by a lot more. Having looked at all my costs – and I mean all, from the 5.8% rise in the price of a kilogramme of tomatoes, to the 2.4% rise in the price of a loaf, to the 6% rise in the cost of filling up my car, to the whopping 14% rise in the cost of a bag of potatoes – I reckon my annual inflation rate is sitting at more than 6% – 6.3% to be exact. The chances are, unless you live with your parents and spend most of your income on new electronic goods (which are about the only things that consistently fall in price these days), your own cost of living is probably rising at a similar rate.

How to profit from America’s manufacturing comeback

“The future of manufacturing is in America, not China” declared Vivek Wadhwa in Foreign Policy magazine this week. Wadhwa argues that technology is going to save the US. In fact, “technical advances will soon lead to the same hollowing out of China’s manufacturing industry that they have to US industry over the past two decades”.

Lord Green is pushed on HSBC money laundering

A shadow treasury minister has written to Lord Green, trade minister, demanding answers about HSBC’s money laundering problems in America and Mexico.

Citigroup CEO Vikram Pandit: It's about getting back to the basics of banking

In a rare interview, Citigroup CEO Vikram Pandit tells the Sunday Telegraph how he plans to change the culture at the US giant.

Sceptics abound as Mario Draghi's ECB bond 'bluff' electrifies global markets

The European Central Bank has opened the door to emergency support for the Spanish and Italian bond markets, setting off a blistering rally on bourses across the world.

Euro exit beats begging bowl, says Cascos

The regional leader of Asturias in Spain has become the country’s first major figure to call for a radical change of strategy and exit from the euro, unless monetary union is fundamentally reformed.

Europe is sleepwalking towards imminent disaster, warn top economists

The euro has completely broken down as a workable system and faces collapse with “incalculable economic losses and human suffering” unless there is a drastic change of course, according to a group of leading economists.

Eurozone danger mounts as Spain spins out of control

Spain is battling to avert a fully-fledged sovereign rescue after borrowing costs spiralled out of control, with dangerous knock-on effects in Italy and Eastern Europe.

Blaming the Spanish victim as Europe spirals into summer crisis

It is time for Spain and the victim states to seize the initiative.

Spanish debt crisis returns as Germany nears bailout fatigue

Spanish borrowing costs have surged to euro-era highs despite draconian fiscal cuts and backing from the German parliament for the country’s €100bn (£78bn) bank rescue package.

Monti plans 'Greek-style' takeover of Sicily to avert default

Italian premier Mario Monti is mulling emergency action to take direct control of Sicily’s regional government before the island spirals into a full-blown financial crisis, fearing contagion to the rest of Italy.

Fund managers expect more trouble in Germany

Fund managers from across the world have begun to doubt Germany’s ability to withstand further shocks from the region’s debt crisis, registering a stark change in view since the late spring.

Euro tumbles as Asian funds shun EU chaos

The euro has plunged to multi-year lows against a range of currencies on fears of a deepening slump in Italy and Spain, and ugly disputes between eurozone leaders.

Spain bows to EU ultimatum with drastic cuts

Spanish premier Mariano Rajoy has raised VAT sharply in a humiliating volte-face and pushed through €65bn (£51bn) of drastic austerity measures to comply with a European Union ultimatum, risking a downward spiral into full depression.

Germans in court battle to block eurozone bailouts

The German Constitutional Court may take up to three months to rule on an injunction by private citizens and Left-wing lawmakers aimed at blocking the eurozone bailout machinery, leaving markets hanging in suspense as the eurozone debt crisis eats at confidence.

Debt crisis: ECB pledges action as southern Europe buckles

The European Central Bank has vowed to do whatever it takes to hold the euro together after the North-South gap in borrowing costs reached fresh extremes, pushing the two halves of monetary union closer to breaking point.

What I Wish Ben Bernanke Knew About Japan

I've called Japan my "other" home since 1989 and in that time I've seen it change in ways that ought to scare the pants off you. I say that not to ruin your day, but because I fear we are headed down the same exact road as long as Ben Bernanke and his central banking buddies think it's easier to print money than actually stimulate real growth. In doing so, they are re-creating Japan's "Lost Decades" here at home with years of smoldering, piss-poor growth as our destiny. Yet it doesn't have to be that way. We can still choose a different path.

Is it time to buy Chinese stocks?

This week, the cover story in US financial paper Barron’s warns readers to expect a hard landing in China. It covers all the bases. China has relied too much on exports (not a viable model when your customers in the US and Europe have no money) and infrastructure building (not viable when you’ve built too much of it already). So now it faces a property crash, and tighter credit, just at a time when it’s trying to become a consumer-driven economy. That’s a tough task for anyone to tackle. It’s even tougher for a country burdened with vested interests who would rather keep the state-owned enterprises in control than let the private sector breathe. Oh, and on top of that, there’s a change of leadership to cope with. However, it doesn’t add anything new to the story that MoneyWeek readers wouldn’t already have picked up from our various China covers over the last couple of years. (Read this piece from June 2011 for a full rundown of the bear case: China is heading for a fall – here’s what it means for you). And that got me thinking. If the China story is only now hitting the mainstream, and there’s not much new to add to it – well, maybe it’s time to have another look at Chinese stocks…

Capitalism is in crisis but it's still our best bet for prosperity

The last couple of weeks have not been good for capitalism. The Libor scandal has come on top of yet more disputes about executive pay. This has brought forth the usual catcalls from the left and the usual kneejerk responses from the right.

German president tells Angela Merkel to come clean on EU debt deal

Joachim Gauck, the German president, has ordered Chancellor Angela Merkel to clarify exactly what she agreed behind closed doors at the EU crisis summit ten days ago.

Euro break-up: Let Germany lead the northern core and France the rest

The respected economist and Telegraph columnist summarises the argument for an orderly break-up of the eurozone if a struggling member was forced to leave that won him the Wolfson Economics prize.

One thing is clear– the Bank knew Libor was broken and did nothing

Paul Tucker, the Bank of England's deputy governor, says he is keen to give evidence to the Treasury Select Committee "as soon as possible" to clarify what he sees as the misconceptions surrounding the Libor fixing scandal.

Fraud trial for Rodrigo Rato over Bankia collapse

Rodrigo Rato, the former head of the International Monetary Fund, is to face trial for alleged fraud in connection with the spectacular collapse of Spanish lender Bankia.

Debt crisis: Italy's deficit to double, but Germany's to halve

Italy has almost doubled its deficit forecast, as Germany halved its, underscoring the increasing lag of "sinner states" that could persuade the European Central Bank to cut interest rates on Thursday.

Debt crisis: Greece admits it's off track on bail-out terms, as troika inspects

Greece's new finance minister, Yannis Stournaras has admitted that the country is "off-track" to meet the conditions of its bail-out agreements while his predecessor warned Athens would need three-years to get back on track.

Falklands oil players on the cusp of something huge

Stand by for action! The Falklands Islands could be making headlines again very shortly. And this time, it won’t be Cameron and Kirchner who are dominating the headlines.

The best emerging market to buy now

This Thursday’s Bank of England interest rate decision has investors’ mouths watering. Even more money-printing seems to be on the cards. Similarly, India’s central bank has been standing firm against its government too.

The $289 Trillion Problem

Two hundred and eighty-nine trillion dollars. An unimaginable amount. That is the total of derivatives outstanding at the top five US bank holding companies as of March 31, 2012, according to the Office of the Comptroller of the Currency (OCC).

Debt crisis: Live

European Central Bank policymaker, Joerg Asmussen, urges Greece to stick to its reform agenda as markets digest data showing a slide in Spain, Greece and Italy's manufacturing activity and a rise in unemployment across the eurozone.

Bank of England prepares £200bn economic stimulus

The Bank of England is preparing to unleash a £200bn stimulus package for the economy by printing more money this week and relaxing financial regulations.

Europe’s bad debts 'will bite in 2013’

Bad debts in the eurozone are a “ticking time bomb” for the continent’s economy, with the worst effects expected to be felt next year, a report has warned.

Euro debt crisis: is complete pessimism justified?

Rarely have economists and policy-makers emitted such unmitigated gloom.

Italy has won this euro battle, but not the war

Long-suffering investors, desperate for some good news, have seized on the headlines from the latest in a long series of “last-ditch” European summits.

After Barclays, the golden age of finance is dead

Retribution and regulation are sure to follow the Barclays scandal, but if the City is shackled, Britain as a whole will suffer