Five things investors learned this week

15th November 2013

1) UK CPI Inflation is down to 2.2%, nearly on target, but the Bank of England’s quarterly inflation report leading experts to predict that rates could rise earlier than expected, but not until the turn of the year 2015/2016.

2) Warren Buffett has bought a $3.45bn stake or 0.9% in Exxom Mobile in the second quarter as Investment Week reports following SEC filings from Berkshire Hathaway.

3) Janet Yellen, the deputy chair of the Federal Reserve, defends quantitative easing at the Senate hearings expected to confirm her in the top job as the Wall Street Journal reports. BNY Mellon suggests it could see an era of accommodative “Yellenomics”.

4) BSkyB loses Champions League football to BT for a princely £900m as the Daily Mail reports, but the plot is thick. Intriguingly, BT is using football, not as a ‘battering ram’ for Pay TV (Rupert Murdoch famously said that was what he was doing in the early nineties), but as a bonus for signing for its broadband services and that strategy seems to be working. Now with the BSkyB price having taken a battering to the tune of £1.3bn, the Telegraph speculates that the price could be low enough for Rupert Murdoch to launch a bid to take over the whole firm and place it fully within his Fox stable. He currently owns 39%.

5) The World and especially the Eurozone could be facing deflation. The Economist wonders about what action banks can take including raising inflation targets. That might not be popular in many quarters.

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