Nvidia’s share price (NVDA) during a five-day period up to January 28th Source: Google Finance, 2025 On Monday 27th of January, Nvidia (NVDA) suffered a 17% fall in its shares, constituting a $592.7 billion drop in market capitalisation – the total value of company shares held by investors – from $3.5 trillion to $2.9 trillion and corresponding to a fall in share price from $142.62 to … Continue reading Chart of the Month: January 2025
At its peak, the English East India Company (EIC) was not only the first multinational company of its day, but was also the largest corporation of its kind: the EIC surpassed the scale and power of many nations, effectively becoming the governing authority of India, one of the most economically productive regions of the era. Furthermore, even though the East India Company’s monopoly on trade waned in … Continue reading Corporate Colonialism
The economic theory suggests that when central banks cut interest rates, bond yields decline. Interest rates are the annual return investors receive from a bond. If the central banks issue new bonds at a lower rates, existing bonds – which yield a relatively higher return – will be received with higher market demand, thereby driving up bond prices. Consequently, their yield, defined as the quotient … Continue reading The US Bond Market Puzzle: Higher Yields Amid Cuts
We’ve all heard of the video rental giant – Blockbuster. Its Founder David Cook opened nearly 10,000 global stores and generated billions in annual revenue. Yet in the early 2010s, the name disappeared from high streets, with its last corporate-owned store shutting in 2014. How did a company that dominated its industry fail so spectacularly, and more importantly, how can companies today learn from its … Continue reading From Blockbuster to Bust: Lessons for Companies Facing Innovation
Freetown Christiania is an experimental self-governing community in Copenhagen, amidst the “hippie” counter-culture movement of defiance that characterised the time. Born in 1971 from the occupation of an abandoned military base, Christiania defies conventional economic norms, operating without private property and with a unique model of communal ownership and resource sharing. Over the past 50 years, it has evolved into a sustainable micro-economy that draws … Continue reading Christiania: Economic Lessons from Copenhagen’s Self-Governing Society
In the aftermath of the 2008 global financial crisis, Greece was faced with crippling debt. Resulting in the implementation of austerity measures (policies which reduce government spending and shrink the budget deficit), slumping GDP and overall political instability. Despite the UK being one of the largest economies in the world its national debt (£2,686 billion) has been ever rising, especially after the pandemic and specific … Continue reading Britannia on the Brink: Is the UK Turning into Greece Lightning?
What strategies would be most effective for improving UK productivity? Introduction Enhancing productivity, defined as the ratio of output to input volume [1], is critical to unlocking higher UK economic growth. Productivity improvements account for half of the differences in GDP per capita across countries (Chart 1). Growth in labour, capital, and Total Factor [2] productivity would translate into higher standards of living and prosperity growth. As Krugman … Continue reading UK Productivity
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