As UK growth slows to 0.4 per cent in the first quarter, is George Osborne right to blame it on the EU referendum? April 28, 2016 Scott Corfe, director at the Centre for Economics and Business Research, says Yes. Our business survey research shows that companies have reined in capital spending plans amid all the uncertainty over Brexit. This is particularly the case for large businesses, and we are likely to see some weak investment figures in the first half of this [...]
CBI warns of delays to the apprenticeship levy as it worries the scheme may not be viable by April 2017 launch date April 28, 2016 Employers are demanding the government rethinks its flagship apprenticeship levy policy as business groups have raised yet more concerns that the scheme is not fit for purpose and might not be ready on time. In a speech later today, Carolyn Fairbairn, director general at the CBI will say: “Firms are passionate about apprenticeships, and it's [...]
US Federal Reserve keeps benchmark interest rates unchanged with a 9/1 vote April 27, 2016 The US Federal Reserve has left its overnight lending rate for banks unchanged at a target range of between 0.25 and 0.50 per cent at its latest meeting. The committee of 10 said in a statement it would continue to monitor the US and global economic situation. The Committee expects that economic conditions will evolve in a manner [...]
Low oil prices pushes Saudi Arabia into economic reform – Prince Salman declares an end to reliance on oil and outlines Vision 2030 plan to diversify the economy April 27, 2016 Saudi Arabia is to kick its “dangerous addiction” to oil as the country's cabinet agreed on plans to diversify the economy away from the black stuff. The country is hooked on fossil fuels but “by 2020 we'll be able to live without oil,” said deputy crown prince Mohammed bin Salman, author behind new economic plan, Saudi [...]
GDP growth slows to 0.4 per cent as first quarter volatility hits UK economy April 27, 2016 Economy watchers have been gearing up for today for quite some time. Calendars are cleared, models refined, data plugged in and the braver ones of the bunch even stick their necks out with a prediction or two. That's right: It's GDP day. We knew it was going to be ugly. The economy grew by 0.6 per cent in [...]
Get ready for another bout of Fedspeak when the US Federal Reserve holds interest rates this evening April 27, 2016 The US Federal Reserve will not be raising interest rates this evening. Neither will Janet Yellen – or anybody from the rate-setting Federal Open Markets Committee (FOMC) – be holding a press conference to announce the non-decision. That won't be enough to stop markets working themselves into a frenzy at around 7pm when a written [...]
EU referendum: Wetherspoon boss warns European Union is “doomed” because it lacks democracy April 26, 2016 The European Union is "doomed" because it doesn’t have the level of democracy required to make it a great economic region, the boss of one of the UK's biggest pub chains has warned. Tim Martin, the chairman of JD Wetherspoon and a staunch supporter of the Leave campaign, said that just as the euro could [...]
Obama effect holding steady as sterling soars against the dollar April 26, 2016 The pound has soared against the dollar today, smashing through the $1.46 mark and extending a run of gains that has caused sterling to rise by six per cent in the past 10 weeks. This afternoon, the pound was trading at $1.4614, up 0.91 per cent on the day. Sterling's gains were mirrored against the euro, where it was [...]
Property market mushrooms in March as mortgage borrowing hits a post-crisis high April 26, 2016 The property market was in full swing last month with yet another industry report showing mortgage lending shot up as investors piled in to beat the stamp duty surcharge which came into effect on 1 April. According to the British Bankers’ Association (BBA), banks and building societies dished out £17.1bn to people taking out mortgages in March – [...]
UK economy slowdown expected to be confirmed this week with official GDP growth figures April 25, 2016 The UK economy is expected to have recorded a marked slowdown in the first quarter of this year when official figures for GDP growth are released on Wednesday by the Office for National Statistics (ONS). The economy grew by 0.6 per cent in the final quarter of last year, though economists are suggesting that could have [...]