MarketLine Blog

Posts written by Theodore Delimaris

BoE interest rates: It is time for a raise


On June 15, the Monetary Policy Committee of the Bank of England decided once again to keep interest rates at the record low of 0.25%. However, the big news is that the unexpected 5-3 vote on that decision signals a change of a monetary policy, amid rising inflation that threatens households’ real income. This was no surprise as inflation in the UK economy reached 2.9% in May, keeping up its accelerated trend. In fact, this rate has surpassed the target rate of 2% set by the BoE, quicker than expected…. Read more

Sanctions against Qatar: The huge costs for a large exporter that also spread to the global economy


The ban of transportation of goods and citizens’ movements from and to Qatar, implemented by the most powerful Middle-Eastern countries (Saudi Arabia, UAE, Bahrain and Egypt) was a huge diplomatic shock that entails a series of economic effects. Indeed, it seems that politics are a force of impact for a small geographical country that is heavily engaged in global trade. Qatar, one of the richest countries in the world, with large trade surpluses based on gas and oil exports, will have to sustain the consequences of that dependence. Taking into… Read more

US Retail Apocalypse: Price-sensitive consumers rather than online-purchasers shape the industry


The term “US Retail Apocalypse” which is used to describe the downsizing trend of some of the largest US retailers is characteristic of the widespread belief that online retail has transformed the structure of the US retail industry by incurably altering the habits of US consumers. However, such an explanation is proved to be extravagant based on statistics and data regarding e-commerce penetration. In addition, the steady growth of discount retailers is one of the facts that disapprove this theory of e-commerce prevalence as a distribution channel and key reason… Read more

French elections: Economic considerations and policies will shape the final outcome


First of all, the preference of French voters is clarified from the polls as three quarters of voting preferences tend to be gathered among center to right wing politicians. This indicates certain prevailing trends of voters such as the need for sense of security and the adjustment of France’’ foreign relations with Europe and the rest of the world. Nevertheless, even immigration and foreign relations are associated with economic policies over unemployment, welfare state, national security and certain industries of the French economy. Especially, unemployment and social protection are fundamental… Read more

Airline Industry: Heading to value differentiation


Price differentiation of an airline company has been implemented so far on the means of absorbing the consumers’ willingness to pay for the same service, an economy class with frills. In this way, not much price differentiation existed on the value of services as the distinction made was only between economy and business class. This distinction of services was too steep to keep out many consumers that would be available to pay for the price of a ticket with no frills and lower quality of services. The surging penetration of… Read more

Greek debt crisis: Why Grexit is not an option


It is actually proven that undoing a fatal mistake of relying on an overvalued currency does not correct matters. The no alternatives case for the Greek economy on staying in the single currency union is easy to realize after having a close look at its macroeconomic figures that reflect something of an economic collapse. In fact, the heavy reliance of the Greek economy on services and at the same time its lack of a national productive base  rule out the possibility of achieving growth through the adoption of a devalued… Read more