With the Bank of England expected to cut interest rates, is looser monetary policy now a necessity for developed economies? July 14, 2016 Alasdair Cavalla, senior economist at the Centre for Economic and Business Research, says Yes. For central banks, today’s world looks very different to before the crisis. In a deflationary era, the trade-off between inflation and growth could hardly have moved further in the doves’ favour. China’s rise leaves unprecedented imbalances: overcapacity of supply; abundance of capital; and [...]
We’re all in the dark when it comes to her economic policies – but here are five conjectures July 14, 2016 This is one of those articles I could live to regret. Speculating on the future economic policies of a Prime Minister in power for less than a day is either bold, reckless or both. We’re all in the dark, a bit like Ken Clarke, who said last week that he only knew in detail what [...]
Over to you, Carney – our MPC has voted to cut rates July 14, 2016 Mark Carney will reveal today whether the Bank of England will cut interest rates for the first time since March 2009, following the public’s surprise decision to vote for Brexit at the end of last month. Markets have priced in an 80 per cent chance of a cut to the main bank rate, which currently stands [...]
Economists for Brexit call for the government to unilaterally dismantle all trade tariff barriers July 13, 2016 A renegade group of pro-Brexit economists have laid out their plans for how the UK should navigate the instability caused by the UK leaving the European Union. They claim UK GDP could grow by 2.3 per cent this year and 2.7 per cent in 2017 if the government follows their advice to unilaterally dismantle all [...]
At the close: FTSE 100 dips as pre-BoE jitters seize European markets July 13, 2016 The FTSE 100 has dialled back its earlier gains to skid at the close this evening. The blue-chip index finished down just a touch at 6,670.40, off by 10 points – or 0.15 per cent. It's the second flat close on the bounce for the FTSE 100 after ending yesterday's session unchanged. It had earlier in today's session climbed to 6,717.17. The [...]
Oil price drops after US reports a smaller-than-expected reduction in stock July 13, 2016 The oil price has fallen on reports that US stocks have fallen by a smaller-than-expected amount. The US government's Energy Information Administration (EIA) said crude inventories fell 2.5m barrels last week, less than expectations for a 3m-barrel drop in a Reuters poll and contradicting trade group American Petroleum Institute's report yesterday, which showed a crude build of 2.2m [...]
Is foreign secretary Philip Hammond set to be named the UK’s new chancellor? July 13, 2016 Foreign secretary Philip Hammond is emerging as a frontrunner to become the new chancellor in Theresa May's first cabinet. May is expected to name her top team in the coming days, and Hammond has been widely named as the likely inheritor of one of the government's most senior roles. According to ITV political editor Robert Peston, Hammond [...]
Copper charges through $5,000 mark ahead of Bank of England rate decision tomorrow July 13, 2016 Expectations for some long-awaited action over at the Bank of England helped copper surge past $5,000 per tonne today. Copper on the London Metal Exchange jumped as high as $5,032 a tonne, its strongest since 29 April, before falling back to $4,869 in mid-afternoon trading. Read more: Say what? Gold isn't a good hedge against economic crashes, [...]
Three reasons why gold is the best-peforming investment this year, and prices are going to keep on rising July 13, 2016 Gold has been one of the best-performing assets this year, and the weeks since Brexit was announced have pushed the precious metal higher. Gold is now priced at $1,373 an ounce, 22 per cent or $312 higher than when 2016 began. Of all the investment funds out there, gold funds are the five best performers. [...]
Before the bell: What you need to know before the US market open July 13, 2016 US stock markets are at a record high, Opec production is at its highest level in eight years, and China's trade surplus narrowed. Here's what you need to know before the US market open at 2:30pm London time. US futures are pointing up ahead of the open, though are not looking quite as rosy as in recent sessions. The S&P [...]
