Pound staggers as Bank of England hints at interest rate cut September 27, 2019 Sterling fell today as a top official at the Bank of England flagged a possible interest rate cut to offset continued Brexit uncertainty. The pound fell to its lowest value against the dollar in almost three weeks as BoE official Michael Saunders said the Bank may lower interest rates. “Quite why this is moving the [...]
Bank of England could cut interest rates if Brexit uncertainty persists, says MPC member September 27, 2019 The Bank of England may need to cut interest rates even if a no-deal Brexit is avoided, according to a member of the monetary policy committee (MPC), which sets the rates. Michael Saunders has said that the Bank may have to cut rates if the “slow puncture” effect on the economy from Brexit uncertainty persists. [...]
If Jeremy Corbyn really cares about ‘the many’, he should rethink his aversion to markets September 27, 2019 A common complaint over the past three years is that no one can talk about anything other than Brexit. But that wasn’t true at the Labour party conference this week. Unlike the Liberal Democrats, who barely gave way to any policy discussion beyond revoking Article 50, both the Labour leader and shadow chancellor confronted all [...]
Consumer confidence edges up in September September 27, 2019 Consumer confidence grew slightly this month but remained negative overall as uncertainty continued in the run up to the 31 October Brexit deadline date. Despite the two point increase, consumer confidence was still minus 12 points in September compared to a score of minus nine in the same month last year. Read more: UK consumer [...]
New IMF boss Kristalina Georgieva: Global economy must be prepared for downturn September 26, 2019 The incoming head of the International Monetary Fund (IMF) has warned that preparations for a global economic downturn “could soon be tested”. Kristalina Georgieva, who will succeed Christine Lagarde as the new IMF boss next month, said that warning signs are “now flashing”, echoing fears of an upcoming recession in the wake of geopolitical turmoil. [...]
ECB’s German hawk quits as bank prepares to loosen purse strings September 26, 2019 The only woman on the European Central Bank’s board quit last night, as the bank prepares to resume pumping money into the struggling Eurozone economy. Sabine Lautenschlaeger felt it was the right time to leave, according to reports, and will quit the bank on 31 October. Read more: ‘We had to respond’: ECB defends move [...]
Deutsche Bank CEO: Central banks lack tools to prevent economic crisis September 25, 2019 The turnaround boss of Deutsche Bank struck a gloomy tone over the future of the world economy today, warning that central banks have already “turned on the money tap to the limit” and forecasting that the current US-China trade war will persist. Christian Sewing, who is chief executive of the struggling German lender, told banking [...]
In such volatile times, the safest assets aren’t necessarily what investors think September 25, 2019 Given the climate of intense uncertainty, the FTSE index remains remarkably resilient. It currently sits almost bang in the middle of the 7,000-7,600 range, where it has been since the beginning of January 2017. Brexit does not seem to trouble share prices. Nor do the threats by John McDonnell, Labour’s shadow chancellor, to carry out [...]
Sterling rises as Supreme Court scuppers Boris Johnson’s Brexit plans September 24, 2019 Sterling has risen around half a cent against the dollar after the Supreme Court ruled that Prime Minister Boris Johnson’s move to prorogue parliament was unlawful. GBP rose to $1.2487 after Lady Hale announced the 11 justices’ unanimous decision that “parliament is not prorogued”. Read more: Bercow recalls MPs as Supreme Court rules parliament suspension [...]
Eurozone comes close to a standstill as activity hits six-year low September 23, 2019 Economists warned the Eurozone was on the verge of stalling this month as demand for goods and services fell at its fastest rate since 2013. Slowing service sector expansion compounded a worsening manufacturing recession to knock the Eurozone’s composite output to a 75-month low of 50.4, according to IHS Markit’s Purchasing Managers’ Index (PMI). Read [...]
