ECB continues to look through rising inflation as big risks loom on the horizon February 16, 2017 The European Central Bank (ECB) remains committed to “looking through” rises in headline inflation as Europe faces a balance of risks “tilted to the downside”, according to the minutes from its latest monetary policy meeting. Members of the rate-setting governing council “widely agreed” to maintain its ultra-loose monetary policy despite mounting pressure to scale back [...]
The UK’s construction industry started 2017 on a high February 16, 2017 The UK's construction industry started the year strongly as housebuilding dominated activity. The value of new building contracts rose to £6bn in January, according to analysts Barbour ABI, with London accounting for over a quarter of contract value. The capital was boosted by the One Nine Elms project in Vauxhall, the most valuable development in [...]
Record-breaking employment numbers threatened by government short-termism February 16, 2017 The Office for National Statistics published the latest labour market statistics yesterday, once again confirming that it has been a record-breaking year for employment. With 31.84m people in work, the unemployment rate at the lowest it has been for over a decade (4.8 per cent), and, with a record 70 per cent of women in work, there [...]
World stocks hit fresh record highs as investors around the world look for risk February 16, 2017 World stock markets have risen to fresh all-time record highs as investors around the globe anticipate economic growth after a sustained period of stagnating economies. The MSCI all-country world index added further to Wednesday’s record highs with small gains on Asian markets mimicking those in US markets, despite futures suggesting the rally may pause when [...]
Winning the battle for completely free trade post-Brexit will vastly increase UK prosperity February 16, 2017 Economists for Free Trade (of which I’m part) is launching today to make the case for the UK to run completely free trade once we leave the EU in 2019. Our aim is simple. We want Britain to lead the world on free trade. Our group has been formed to fight the battle which needs [...]
As the EU sends an envoy to Greece to salvage the debt deal, would the Eurozone survive Grexit? February 16, 2017 Carsten Hesse, emerging European equity strategist at Berenberg, says Yes. Although tensions are flaring up again, it remains highly unlikely that Greece will leave the Eurozone. It has already done 80-90 per cent of the required fiscal repair and structural reforms and two-thirds of Greeks want to keep the euro. The current noise sounds like [...]
Italy needs banking reform to continue “weak” recovery says OECD February 15, 2017 Italy must reform its banking system if it is to continue on a “weak” path to recovery, according to the Organisation for Economic Co-operation and Development (OECD). The country should be prepared to force holders of Italian bank debt to lose money rather than using public funds to bail them out, according to a report [...]
Productivity rises consecutively for a year but slow growth will provide little boost to UK wages February 15, 2017 Productivity in the UK recorded a year of consecutive improvements for the first time in more than five years, despite slowing slightly in the final three months of 2016. Output per hour grew by 0.3 per cent in the three months to December, according to preliminary estimates by the Office for National Statistics (ONS), a slowdown [...]
Five-year high for US inflation in biggest jump in consumer prices since 2013 February 15, 2017 Consumer prices in the US jumped in January by the most since 2013 as higher oil prices continue to make their impact around the world. Prices increased by 0.6 per cent in January to push annual inflation to 2.5 per cent, higher than expected, according to the US Bureau of Labour Statistics (BLS). Rising petrol [...]
Inflation will push living costs 10 per cent higher than pre-crisis peak February 15, 2017 Inflation could push the cost of living 10 per cent higher than before the financial crisis by 2020, with 11m families below a poverty benchmark, according to a new report. Almost a third of the UK’s population falls below the minimum income standard measure used in the report by academics at Loughborough University and the [...]
