German industrial production easily beats expectations reaching 14-month high August 7, 2013 German industrial production figures smashed expectations in June, rising by half a percentage point year-on-year and 2.4 per cent from the month before. This follows a 1.0 per cent fall in annual data and an upwardly revised 0.8 per cent monthly figure. Analysts had expected a decline of 0.4 per cent and an increase of [...]
Bank of England’s Carney and Dale defend first part of Help to Buy August 7, 2013 Bank of England governor has said he is watching the Help to Buy scheme and the housing market closely. He said it's important to see the recent developments in context – with mortgage applications still below the long term average for example. The MPC’s Spencer Dale, executive director and chief economist at the bank, said [...]
Bank of England governor says UK recovery the slowest on record August 7, 2013 Bank of England governor Mark Carney has said the Monetary Policy Committee does not see GDP won’t reach its precrisis peak until next year – the slowest recovery on record. The MPC expects annual growth to be 2.4 per cent in two year’s time – still a little below the historical average. Inflation is expected [...]
Government borrowing costs up and pound down as Bank introduces forward guidance August 7, 2013 (Source: Tradeweb) We've seen some immediate reaction in bond markets as the Bank of England has announced some forward guidance. Government borrowing costs jumped from 2.436 per cent to 2.491 per cent. The pound dropped sharply against the dollar on the news.
Bank of England rates unlikely to increase until second half of 2016 August 7, 2013 The Bank of England has introduced a US Fed style unemployment threshold, of seven per cent. Some analysts had anticipated this. UK unemployment was at 7.8 per cent in the three months to May. So we'd need about 750,000 more jobs to be created. In particular, the MPC intends not to raise Bank Rate from [...]
Lost in translation: Tensions between UK and Spain over Gibraltar high as ever August 7, 2013 Reports of progress on de-escalating the tension between Spain, the UK and Gibraltar over proposals to introduce a border charge following a fishing dispute seem to have been lost in translation somewhere. This comes as the UK and Spanish government release potentially contradictory responses to the outcome of a phone call from UK prime minister [...]
FCA completes reform of supervision department with four new directors August 7, 2013 The UK financial regulator the Financial Conduct Authority has appointed four new directors to its supervision division, concluding the structural reform of that unit started in April this year. The FCA says the new structure better aligns its function with the markets it oversees and the products consumers buy. The appointments are: Karina McTeague as [...]
Inflation report look ahead: What the analysts are expecting from Carney August 7, 2013 All eyes on the Bank of England at 10.30 this morning, as the Inflation Report is unveiled. Several analysts are predicting that the central bank could adopt a Fed-style unemployment target. UK unemployment was at 7.8 per cent in the three months to May. Emily Nicol, Daiwa Capital Markets: The main policy event today will [...]
Earnings per share in Old Mutual more than halve in first six months but investors are still buying August 7, 2013 Savings and investment group Old Mutual has reported an 11 per cent increase in pre-tax profits to £805m for the first half of the year, but a 54 per cent fall in basic earnings per share to 8.9p from 19.2p (release). The group said adjusting operating profit increased by 14 per cent to £801m, in [...]
£70m project will see Kier replace nine of London’s oldest fire stations August 7, 2013 Construction company Kier has announced that a £70m project to revamp London's fire stations will go ahead. The Blue 3 consortium including Kier and DIF Infrastructure II will replace nine stations with £52m of government funding (release). Stations at Purley, Dockhead, Old Kent Road, Mitcham, Dagenham, Leytonstone, Plaistow, Orpington and Shadwell will replace the current [...]