EY Item Club: UK economy is surprisingly resilient – but faces a “prolonged period of weaker growth” October 17, 2016 The British economy will be hit by a "prolonged period of weaker growth" as the impact of the EU referendum begins to be felt – but will continue to be resilient, an influential forecaster has predicted. The EY Item Club, which uses the same forecasting model as the Treasury, said GDP growth will hit 1.9 [...]
Ben Broadbent: Pound fall has been a “shock absorber” October 17, 2016 The decline in sterling after the UK voted to leave the European Union has acted as a shock absorber for the economy, according to Bank of England deputy governor Ben Broadbent. "Having a flexible currency is an extremely important thing, especially in an environment when your economy faces shocks that are different from your trading [...]
London Stock Exchange to become brighter and smellier with two new floats this week October 17, 2016 The London Stock Exchange’s main market is this week set to become a little brighter, but also a bit smellier, thanks to two new floats. Luceco, an LED lighting and portable power manufacturer, and waste management company Biffa both confirmed this morning they plan to float on Thursday. Read more: Biffa set to float next week [...]
Why Donald Trump should be closely watching the Mexican peso October 17, 2016 As the odds of a Donald Trump victory lengthened last week, few will have welcomed the news as much as Mexico. The Mexican peso, which fell by 12 per cent in the first nine months of this year, has bounced back as market fears of a Trump win calmed. “The peso has become a bellwether [...]
Downing Street plays down talk of Mark Carney tension October 17, 2016 Downing Street appears keen to play down perceived tension between the Prime Minister and governor of the Bank of England, with allies saying he is "highly regarded". The Bank’s Mark Carney said in a speech on Friday that he would not be told what to do by politicians, adding: Read more: May you leave us [...]
Theresa May is angering both Leavers and Remainers October 17, 2016 Theresa May’s approach to Brexit has proved immensely frustrating to those who found themselves on the losing side of the referendum debate. This frustration, based at first on the idea that the government lacked any kind of plan, is turning into despair at the realisation that the PM does not intend to give any ground [...]
As Mark Carney warns of troubles ahead, should the Bank of England tolerate rising inflation? October 17, 2016 Scott Corfe, associate director at the Centre for Economics and Business Research, says Yes. Inflation will rise next year, and it is likely to rise sharply as sterling’s remarkable decline feeds through into higher import costs. CPI inflation of 3 per cent is well within the realms of possibility and inflation of 4 per cent – [...]
Footfall drops but shoppers keep spending October 17, 2016 Spending on the high street rose last month despite a decline in footfall, the latest data has shown. Retail spending grew in September by 1.3 per cent, while at the same time both footfall and shop prices have dropped year-on-year, according to figures released today by the British Retail Consortium (BRC) and retail analysts Springboard. Total [...]
London Remainers drag down consumer confidence in the capital October 17, 2016 London consumers are feeling less confident than the rest of the UK, data out today shows. Confidence fell in London during the third quarter despite climbing to a five-year high across the rest of the country, according to the latest survey from accountancy giant Deloitte. Consumer sentiment in the capital fell by three percentage points over [...]
Misys cuts float value as Brexit volatility bites October 16, 2016 Financial technology company Misys has been forced to cut the value of its pending market flotation due to Brexit-induced market volatility. The company is the latest in a string of firms that has had to dial back or call off plans to list as a result of the UK’s shock vote to quit the European Union [...]
