May’s big concessions to the Left risk returning the UK to the corporatist mess of the 70s October 5, 2016 Theresa May is an accidental Prime Minister. She is in Downing Street because David Cameron broke his word to the electorate and ducked out, while her rivals totally misjudged the situation. But she is certainly making the most of her position to attempt to reengineer the Conservative brand. Yesterday’s conference speech set out the stall. A [...]
The IMF is wrong to be so gloomy: The British economy is strengthening not weakening post-Brexit October 5, 2016 I have two problems with the latest analysis of UK economic prospects in the IMF World Economic Outlook released this week. First, it is slightly dated and doesn’t take on board some important recent releases. The IMF is behind the curve. Second, the UK forecasts for next year appear to be based more on assumption [...]
IMF warns global debt has hit a record $152 trillion October 5, 2016 The International Monetary Fund (IMF) warned today that global debt has hit a record $152 trillion (£119.2 trillion). The figure, more than twice the size of the global economy, was released in the Washington-based organisation's latest Fiscal Monitor. The IMF added about $100 trillion, or two thirds of global debt, belongs to companies or households which "can carry great [...]
Look to Twitter for why Britain’s economy proved Project Fear wrong October 5, 2016 The economic data on post-Brexit Britain is beginning to emerge. We discovered last month that employment in May to July grew by 174,000 compared to the previous three months. Last week, the Office for National Statistics published its estimate for the output of the service sector of the economy in July. This showed a 0.4 per [...]
Few signs of hope for the Brexit-battered pound October 5, 2016 Sterling could fall further if the UK looks on course for a rocky divorce with the EU, currency analysts have warned. Forecasters currently expect the pound to move sideways against both the dollar and the euro between now and the end of the year, but after a dramatic few days of trading, speculation over the terms [...]
Financial markets wobble after ECB taper talk October 5, 2016 European markets continued to be rattled by the fallout from reports the European Central Bank (ECB) has started planning how to end its money printing programme today. Borrowing costs across the Eurozone rose for the second day in a row as investors carried on digesting the possibility of a tightening of monetary policy from the Frankfurt-based ECB. [...]
US rate rise on the agenda as services sector storms ahead October 5, 2016 A pre-election rate hike in the US is back on the cards after a stellar performance from the country's services firms in September. The sector, which makes up around two-thirds of the world's largest economy, grew at its fastest pace this year, according to the closely-watching ISM non-manufacturing purchasing managers' index (PMI). The PMI came [...]
ECB sees no risk of banking crisis in the Eurozone, official says October 5, 2016 The European Central Bank (ECB) sees no risk of a banking crisis in the Eurozone despite some "individual cases" of lenders in trouble, senior ECB supervisor Ignazio Angeloni said today. Banking shares have been volatile across the single currency area this year, especially in recent weeks, as Deutsche Bank awaits confirmation of a multi-million-dollar fine [...]
Theresa May criticises Bank of England for making people poorer October 5, 2016 Theresa May has come dangerously close to attacking the Bank of England in unprecedented comments on the tools it is using to support the economy during the aftermath of the financial crisis recession and the EU referendum. In her speech at the Conservative Party Conference today, May said: "While monetary policy with super-low interest rates and quantitative easing provided [...]
Before the bell: What you need to know before the US market open October 5, 2016 The pound has recovered some of its losses after mammoth sell-offs all week, while the gold price is steadier after its biggest one-day drop since 2013. Here's what you need to know before the US open at 2:30pm London time. US futures are pointing down in the pre-market. The S&P is off by 0.06 per cent, the [...]
