MPs warn against UK neglecting ties with India in favour of China June 24, 2019 The UK is failing to build an economic and security relationship with India as it grows in wealth and influence, the Foreign Affairs Committee (FAC) has today warned. Read more: New UK-India tech hub to be opened in confidence boost for the City In a new report the FAC cautioned that Britain’s focus on building [...]
Trump says he could demote US Fed chair Powell but has not threatened to do so June 23, 2019 US President Donald Trump said he has the power to demote US Federal Reserve chair Jerome Powell, but has not threatened to do so. “I didn’t ever threaten to demote him,” Trump said in an NBC interview broadcast yesterday. “I’d be able to do that if I wanted to, but I haven’t suggested that.” Trump [...]
UK budget deficit grows as Hammond approaches exit June 21, 2019 Britain’s deficit widened more than expected last month as government spending rose. Public borrowing rose by £1bn to £5.1bn last month compared to May 2018, which remains the lowest May month of borrowing since 2002. Read more: City MP faces calls to resign after grabbing protester by neck Meanwhile the deficit has reached £11.9bn for [...]
Mark Carney: 150,000 firms not ready for no-deal Brexit June 21, 2019 Roughly 150,000 UK businesses are not ready to keep exporting to the EU in the event of a no-deal Brexit, Mark Carney has said. The Bank of England governor said the companies still did not have the necessary paperwork and while many had built up contingency stocks, these would only last “weeks”. Read more: BoE’s [...]
Climate protests get ugly as City waves goodbye to Hammond June 21, 2019 Two of the most powerful custodians of the UK economy last night laid out their vision for how the financial sector can thrive after they leave office. Addressing a City audience in the heart of the Square Mile, chancellor Philip Hammond announced a major review into financial regulation as the banking sector undergoes rapid change and Britain prepares to leave the European Union. [...]
BoE’s Mark Carney cautiously welcomes Facebook’s new currency Libra June 20, 2019 The Bank of England today said it will treat Facebook’s proposed cryptocurrency Libra with an “open mind”, and announced measures to prepare for the coming “payments revolution”. Read more: Facebook confirms launch of own cryptocurrency In a speech in the City’s Mansion House tonight, the Bank’s governor Mark Carney will praise Libra’s potential to “substantially [...]
UK pay rises of 2.5 per cent falls below inflation rate June 20, 2019 UK pay rises stayed flat year on year at 2.5 per cent in the three months to May, according to industry data released today. Employers opted not to increase salary hikes despite rising inflation. Read more: UK unemployment stays at record lows In fact, 87 per cent of the 238 pay rises analysed by Xpert [...]
Fed holds interest rates but hints at future cuts June 19, 2019 The US Federal Reserve has kept interest rates on hold but suggested it could cut them in the future, in its first decision since the Trump administration ratcheted up tariffs on China. Read more: US inflation tepid ahead of Fed rates decision Fed policymakers dropped language about being “patient” over future rate hikes from their [...]
Three reasons why the Bank of England won’t raise interest rates June 19, 2019 The Bank of England should keep interest rates on hold tomorrow due to uncertainty over Brexit, global trade tensions, and recent weak UK data, Morning Wire’s shadow monetary policy (MPC) has argued. Read more: UK inflation falls to Bank of England target Ongoing uncertainty over how Brexit will turn out, and the increasing chances of [...]
CBI: UK manufacturing growth nears three-year low June 19, 2019 A steep fall in car production saw UK manufacturing growth fall to its weakest level in nearly three years in the three months to June, new data has revealed. Car manufacturers’ 83 per cent plunge was its worst quarterly drop since the height of the financial crisis over the quarter, the Confederation of British Industry [...]