Hammond to decide on more QE “carefully and cautiously” October 6, 2016 Chancellor Philip Hammond said today that future decisions over whether the government will approve another round of quantitative easing (QE) to bolster the economy would be taken "carefully and cautiously". His comments came a day after Prime Minister Theresa May acknowledged super-low interest rates and quantitative easing have "some bad side effects". Speaking during a television [...]
Christine Lagarde hits back at criticism of IMF’s Brexit warnings October 6, 2016 The head of the International Monetary Fund has hit back at criticism of the organisation's warnings about the dire impact of Brexit ahead of the vote. Christine Lagarde, managing director of the IMF, said that its forecasts, which included Britain falling into a recession and a stock market crash, had been mitigated by action central bank worldwide. [...]
Brent crude and WTI: US oil breaks $50 per barrel mark for the first time since June October 6, 2016 US oil swung through the $50 per barrel mark today for the first time since June. West Texas Intermediate crude, the US benchmark, rose 1.12 per cent to $50.39 per barrel in early evening trading. Brent crude, the global benchmark, rose 1.31 per cent to $52.54 per barrel, also hitting a four week high. Read [...]
Bean counters are weighing digital’s contribution to the UK economy October 6, 2016 Bean counters are weighing up how they could count the contribution of smartphones and the digital content we consume on them – from watching Netflix to reading a newspaper online – to the British economy. Traditional economic measures have failed to keep up with the rise of digital and the online economy created by technology, and experts believe their [...]
The dramatic fall in sterling is a cause for celebration – not depression October 6, 2016 Sterling is now trading at well under $1.30 to the pound, the lowest it has been for 31 years. Is this a cause for gloom or celebration? Most people seem to be depressed by what is happening, but they ought to be rejoicing. The UK’s exchange rate rose massively during the monetarist era in the [...]
ECB restates commitment to €80bn quantitative easing programme October 6, 2016 The European Central Bank (ECB) has reiterated its commitment to its quantitative easing programme following rumours the central bank was preparing to taper its purchases of government and corporate bonds. In the minutes from its September meeting, released today, the ECB said "there should be no doubt about the [ECB's] determination to execute its asset purchases… and [...]
Before the bell: What you need to know before the US market open October 6, 2016 Deutsche Bank's rally is getting in to full swing, while Twitter shares are plunging in the pre-market. Here's what you need to know before the US market open at 2:30pm London time. US stock futures are tracking lower ahead of the open. The S&P is off by 0.21 per cent, while the Nasdaq is 0.17 per cent lower. [...]
Frosty reception for sterling as pound slips again October 6, 2016 Sterling is under immense pressure again today, as it slipped below the crucial $1.27 mark for the second day in a row, setting new post-referendum lows against both the euro and the dollar. In another brutal day for the pound, it lost 0.8 per cent against the US dollar to hit $1.2645 – a new 31-year low [...]
Angela Merkel has hit back at Theresa May’s plans for access to the Single Market October 6, 2016 Angela Merkel has hit back at Theresa May over her plans for maintaining access to the Single Market once the UK leaves the EU. The German chancellor told a business audience in Berlin she would not countenance giving the UK preferential access while allowing it to restrict the free movement of people. Theresa May told the [...]
Working like it’s 2008: UK productivity finally passes pre-crisis level October 6, 2016 British productivity levels have finally hit their pre-crisis level in the latest milestone in the UK's recovery. However, Britain still lags behind its G7 counterparts by a significant amount, falling behind the likes of Germany, the US and France in terms of economic efficiency. Read more: Do these five charts explain the productivity crisis? Productivity [...]
