German borrowing cost turn negative for the first ever time as investors rush to safety June 14, 2016 The latest key milestone in the new low interest rate era was breached this morning. After months of precipitous declines, yields on the German 10-year bund turned negative in the first few hours of today's trading, hitting minus 0.03 per cent, before settling at minus 0.02 per cent. That means investors are paying the German government to take [...]
European Court of Justice: UK should not have to pay EU migrants family benefits June 14, 2016 One of Europe's highest courts has backed the UK in a case brought against it over welfare benefits for EU migrants. In a judgment today, the European Court of Justice said the UK's "right to reside" test for certain family benefits was legitimate, after the European Commission brought a case against it arguing that it [...]
Inflation holds steady for another month but economists expect movement after 23 June – whatever the result June 14, 2016 Inflation remained stuck near record lows in May as cheaper clothes, food and entertainment offset the effects of rising fuel costs. Prices went up by 0.3 per cent over the year, as measured on the consumer prices index (CPI), according to figures released by the Office for National Statistics (ONS) this morning. That was unchanged from [...]
FTSE 100 drops below 6,000 to new three-month low on Brexit fears June 14, 2016 The FTSE 100 crashed below 6,000 points this morning as investors fled from risky assets in the run up to the EU referendum. The benchmark London index sank 1.3 per cent in the first 90 minutes of trading to stand at 5,967, below the key 6,000 barrier last breached in February. Already at a three-month low, [...]
Oil falls back below $50 as global growth fears weigh June 14, 2016 Oil tumbled today as global growth fears cast a dark cloud over signs that the embattled market could be starting to recover. Brent crude, the global benchmark, slumped 1.30 per cent to $49.70 per barrel, dropping for the fourth consecutive day. Meanwhile, the US benchmark, West Texas Intermediate crude, shed 1.40 per cent to $48.20. Read more: 120,000 UK jobs lost [...]
The Fed’s dangerous monetary experiments will continue whoever wins the US election June 14, 2016 The Federal Open Market Committee will be gathering in earnest today, but this hotly-anticipated event now looks like a damp squib after Janet Yellen all but ruled out an immediate rate rise last week. No doubt Fed watchers will revive their usual excitement and frenzy in the coming months, but a potential 0.25 per cent rise [...]
How the Treasury’s dodgy dossiers grossly exaggerated the economic impact of Brexit June 14, 2016 With just over a week to go before Britain votes, the Remain campaign is relying heavily on analysis produced by the Treasury which claims a variety of extremely negative impacts in both the short and the long term from the UK leaving the EU. Having reviewed the two models used by the Treasury, however, it [...]
The Sun backs Brexit, asks its readers to “beLEAVE in Britain” June 13, 2016 In a major blow to Prime Minister David Cameron, The Sun has come out in favour of Brexit in the upcoming EU referendum. The newspaper's front page on Tuesday carries an editorial backing the Leave campaign: “We urge our readers to beLEAVE in Britain and vote to quit the EU on June 23”. The influential [...]
BAE Systems boss warns employees of uncertainty in the UK in stark Brexit warning June 13, 2016 Defence and aerospace group BAE Systems has warned its staff of the risks of Britain leaving the EU. The company's CEO Ian King told employees in a note on the BAE Systems' internal website that Brexit would bring a "period of uncertainty", Sky News has reported. "From early on we have made clear our company view that remaining part of [...]
Brexit concerns prompt market’s fear index to hit highest level in three months June 13, 2016 Wall Street’s CBOE Market Volatility Index (Vix) aka the Fear Index crossed the 19-level for the first time since 10 March thanks to jitters in the global market including Brexit concerns. Vix, a yardstick for measuring fear or volatility in financial markets, added 2.56 points or 15 per cent to 19.59. Factors that affected the index [...]
