George Osborne ditches plans to run budget surplus July 1, 2016 George Osborne has signalled he is ready to drop his target to balance the books by the end of the decade as he pointed to severe economic uncertainty in the aftermath of the EU referendum. Speaking in Manchester, the chancellor said he needed to be "realistic" about the chances of meeting his self-imposed target to [...]
Eurozone unemployment nears five-year low July 1, 2016 Unemployment across the Eurozone dropped to its lowest level in nearly five years in May. Across the single currency bloc, the rate of joblessness was 10.1 per cent – down from 10.2 per cent in April – in another sign that the Eurozone economy is heading in the right direction. The fall takes the rate of [...]
Manufacturing survey reveals industry was on the mend before EU referendum July 1, 2016 Activity in the manufacturing sector was running at a five-month high in the days before the EU referendum, in a sign the industry could have started to turn a corner before the vote. The closely-watched purchasing manufacturing index (PMI) showed activity came in at 52.1, up from 50.4 last month where scores above 50 indicate expansion, [...]
At the open: Yields getting killed as investors seek Brexit shield July 1, 2016 Stock markets have opened with their typical Friday morning calm today, despite frantic trading since last week's vote to leave the EU. The FTSE 100 climbed 0.4 per cent in the first chunk of the session to build on yesterday's impressive gains. The index is standing at a 10-month high of 6,530. With no company [...]
Premier Oil expects to reach debt agreement this quarter July 1, 2016 Premier Oil announced this morning that it has reached an agreement to allow more time for the company to discuss new debt arrangements with its lenders. The FTSE 250 oil group has been forced to renegotiate its financial covenants due to the prolonged oil price rout – earlier this year the group signed up Rothschild [...]
Forget post-referendum gloom: Britain’s economy will blossom outside the EU June 30, 2016 We have made history by becoming the first member state to give notice on our membership of the EU. But given that I will be explaining why I see the UK economy blossoming post-Brexit, it’s worth starting with a bit of my own history. I began student life in 1984 as an undergraduate at the [...]
Oil and gold emerge triumphant from first half market turmoil June 30, 2016 Oil and gold emerged alive and kicking from the financial market turmoil which characterised the first half of this year. Markets have yo-yoed so far this year due to global growth concerns, speculation about another US interest rate rise and more recently Britain's vote to leave the European Union. Brent crude is on course for a 30 per cent [...]
S&P just slashed its rating for the EU from AA+ to AA June 30, 2016 S&P Global Ratings announced today that it was slashing its rating for the EU. The agency cut its long-term rating from AA+ to AA with a stable outlook, meaning it does not foresee the rating changing again in the next two years. The decision to cut the rate was a direct result of the UK's Brexit vote [...]
Mark Carney’s summer rate cut hint sends gilts into negative territory June 30, 2016 After much speculation, it's finally happened — gilts dipped their toe into negative territory earlier today. The yield on a UK gilt maturing in March 2018 fell from 0.14 per cent earlier today to just minus 0.003 per cent. Read more: The pound dived after Mark Carney laid the groundwork for a rate cut It came after Bank [...]
At the close: Just as things settle down Carney makes sure everyone’s still on their toes June 30, 2016 Just as the political situation had stolen the limelight from the markets in the aftermath of the UK's vote for Brexit, Mark Carney grabs it back. Carney, the governor of the Bank of England (BoE), told markets earlier this afternoon to expect a cut in interest rates as he warned the economy was in for a period of [...]
