BoE deputy governor: London’s financial services firms could go to New York October 12, 2016 A top official at the Bank of England has warned New York could poach some of London's financial services firms if the UK does not secure a good Brexit deal. Jon Cunliffe, deputy governor with responsibility for financial stability, said while the threat from European financial hubs like Frankfurt, Paris or Amsterdam was unlikely to [...]
Is this as good as it gets for manufacturing in the Eurozone? October 12, 2016 The march of the Eurozone's makers sped up over the summer as industrial production rose across the single currency bloc. Manufacturing output jumped by 1.6 per cent in August, ahead of expectations and up from a stumble in July which saw activity slip. The four biggest members of the 19-member Eurozone all reported growing activity, [...]
Sterling hit its lowest level on record last night October 12, 2016 The pound fell to its lowest ever level during yesterday afternoon's brutal sell-off as the currency remains under intense pressure. Sterling, which has been suffering at the hands of nervy traders keeping both eyes on every utterance from Prime Minister Theresa May, hit its weakest mark on the Bank of England's "effective exchange rate index" [...]
Thousands of Londoners flee the capital in search of cheap homes October 12, 2016 Tens of thousands of people leave London for a new life in the sticks every single year, new figures from the Office for National Statistics (ONS) have shown. More than 310,000 Londoners moved away from the capital between 2011 and 2015, the ONS said, with most other major cities also seeing Britons flee in search [...]
Pound’s crash reflects poorly on Downing Street October 12, 2016 Former Bank of England governor Sir Mervyn King spoke out on Monday regarding the previous week’s so-called flash crash in the value of the pound. “The whole thing has generated reactions which are over the top,” King said. Just 24 hours later and sterling was, last night, printing figures below $1.21 as foreign exchange traders in [...]
No wonder free trade is under threat: We are only just remembering its downsides October 11, 2016 It had been an article of faith among economists and policy-makers that free trade is a Good Thing. Trade liberalisation was a key feature of the world economic order enforced by the United States after the Second World War. For decades, the trend of removing trade barriers led to world trade growing around twice as rapidly as [...]
Time to take a hint: A weak currency means a weak country October 11, 2016 As the global elite (the “dirty” word du jour) descended on Washington on Friday, working the corridors of the International Monetary Fund and World Bank, there was one thing they couldn’t ignore. It wasn’t weak growth, it wasn’t negative rates. It wasn’t even Donald Trump. It was Brexit and the pound’s dramatic flash crash. In [...]
EU financial transaction tax to be unveiled this year October 11, 2016 Plans for an EU financial transaction tax (FTT) could be published by Christmas after politicians in 10 Eurozone countries agreed to push ahead with plans. After a meeting in Luxembourg late last night, officials declared this morning they would start drafting the legislation which will allow them to place a levy on the trading of financial [...]
Banks’ profitability to be hit by Brexit fears over risky assets October 11, 2016 Market volatility will sap the efforts of Europe's biggest banks to offload their riskiest assets, and continue to drag on their profitability, a new study has warned. Moody's said this morning that the five largest investment banks – Barclays, Credit Suisse, Deutsche Bank, RBS and UBS – will have to accept discount prices for so-called [...]
Bank of England rate-setter thinks sterling could fall further October 11, 2016 The newest member of the monetary policy committee (MPC) has said the pound could continue to fall given inherent weaknesses in the UK economy. Michael Saunders, who joined the Bank of England's rate-setting committee over the summer, told MPs today: "Given the scale and persistence of the UK's current account deficit, I would not be [...]
