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Economics

  • The customer is always right: Sales staff frequently missing the mark on customer expectations, by not listening and not asking enough insightful questions

    February 11, 2016

    Salespeople regularly fall short of customer expectations, failing to measure up to their requirements, such as listening to what they actually want, a survey released today has found. According to the survey conducted by Huthwaite International, 85 per cent of people believe that salespeople should listen carefully to them to make sure they getting what they want, but only [...]

  • UK government borrowing costs hit record low as markets start to price in stronger chance of interest rate cut

    February 11, 2016

    UK government borrowing costs have fallen to record lows as investors ditch risky stocks and flock to the safety of the bond market. The interest on a 10-year UK government bond dropped to 1.275 per cent today. It was just shy of two per cent at the turn of the year and nearly a full [...]

  • Lowest arrears rate for more than a decade as homeowners reap rewards of low interest rates and record employment

    February 11, 2016

    The number of homeowners behind on their mortgage payments has fallen to its lowest for over 10 years. Fewer than one in 1,000 mortgages ended in repossession last year, according to figures released this morning by the Council for Mortgage Lenders (CML). The annual arrears rate for 2015 was 0.92 per cent, meaning fewer than one [...]

  • Why bank share prices are falling: Liquidity levels are borderline economic recession – and the world is facing another funding crisis

    February 11, 2016

    Global investors are rushing to ‘safe’ assets. Many government bond yields have turned negative and gold, so long out of fashion, is spurting higher. Financial markets are cyclical and typically suffer sell-offs every 8/9 years: 1966, 1974, 1981, 1990, 1998, 2007/08 and now 2015/16. Yet, there is a smell of panic across the trading floors [...]

  • Swedish interest rates: Riksbank cuts rates again in surprise move sending krona plunging

    February 11, 2016

    One thing’s for sure: the Riksbank doesn’t do things by halves. The Swedish central bank just took its benchmark interest rate even further into negative territory than economists were expecting. The Riksbank announced this morning it would be cutting rates to minus 0.5 per cent, from the current minus 0.35 per cent. "Our repo rates [...]

  • Google UK tax row: If the Public Accounts Committee mistakenly equate Google’s profits to its sales when discussing corporate tax deals today, they’ll be heading down a blind alley

    February 11, 2016

    When the Public Accounts Committee grills Google and HM Revenue & Customs (HMRC) chiefs today, we may hear repetition of the claim that the technology giant is only paying a three per cent corporation tax rate compared to the 20 per cent everyone else pays.  The MPs could do themselves a favour by not going down this blind [...]

  • UK property prices are rising at twice the pace of wages as housing activity picks up

    February 11, 2016

    House prices are now rising at twice the pace of earnings after a resurgence in demand at the start of the year, new research today shows.  Prices rose 0.2 per cent – or £688 – in January, taking the average value of a property in England and Wales above £290,000, according to estate agents Reeds Rains [...]

  • Economists: Prudential moves are likely to delay Bank of England interest rate hikes

    February 11, 2016

    The Bank of England’s decision to raise interest rates is likely to be delayed by actions undertaken by the relatively new committee that focuses on financial stability. The financial policy committee (FPC) can impose restrictions on particular markets such as residential or commercial property markets, and can also make banks hold more capital. The monetary policy [...]

  • City workers kick off 2016 in the mood to move jobs as confidence climbs

    February 11, 2016

    City workers began 2016 with itchy feet, according to new figures published today by a recruiter. Morgan McKinley said the number of job seekers reached 16,924 in January, up 67 per cent compared with the same month last year. A higher number of job seekers is associated with more elevated worker confidence. While the number [...]

  • UK wealth inequality is widening as climbing house prices due to quantitative easing drive home ownership down – Standard & Poor’s

    February 10, 2016

    While quantitative easing (QE) may have helped to stabilise the UK economy, it has also led to a wider gulf between rich and poor, according to Standard & Poor's (S&P) – and it has also pushed home ownership even farther out of reach for younger people. QE has exacerbated wealth disparity by boosting financial asset and [...]

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