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Economics

  • Manufacturing activity bounces back after poor October showing, but Brexit doubts remain

    November 20, 2018

    Manufacturing activity picked up in the quarter to November, as the industry rallied after a disappointing October report, according to the latest statistics from the Confederation of British Industry (CBI). The organisation's latest monthly Industrial Trends Survey said it expected manufacturers to benefit from ongoing global economic expansion and a low sterling exchange rate. But weak growth [...]

  • Mark Carney says a no-deal Brexit would be the ‘worst outcome’ for the Bank of England

    November 20, 2018

    Mark Carney today told the Treasury Select Committee that a "no-deal" Brexit would be the "worst outcome" for the Bank of England. The BoE governor said he expected May's draft withdrawal agreement to "support economic outcomes" and welcomed the transition period, which is due to end in 2020.   The transition period begins on 29 March 2019 and lasts [...]

  • This government will use free enterprise as a force for good

    November 20, 2018

    Last week, Cabinet Office staff visited a company called Clarity, a soap-making social enterprise established in 1845. In addition to sampling some of the excellent soap they supply to our department, they met the employees who make their products, all of whom have disabilities or long-term health conditions. Clarity is deeply committed to supporting and [...]

  • Labour’s childish antics over Brexit are an embarrassment

    November 20, 2018

    The Brexit deal is on the table and the bids to support it, scrap it, or make it utterly redundant are now in full swing. As Theresa May moves forward with her plan to engineer a parliamentary majority for a proposed exit deal, clear political camps have begun to form. The Tory moderates who have [...]

  • Europe’s top banker warns of eurozone ‘uncertainty’

    November 16, 2018

    The European Central Bank will push ahead with plans to roll back its stimulus package at the end of the year, the bank’s chief said today. ECB president Mario Draghi said he still expects the eurozone economy to keep expanding, but warned that there is increasing uncertainty. “If firms start to become more uncertain about [...]

  • An Italian Bank run could crack the euro

    November 16, 2018  |  City Talk

    The Italian government is defying the European Commission’s request that it revise its draft budget for 2019 to reduce the deficit. Bond yield spreads are widening and Italian banks are under pressure. Should a bank run ensue, could the euro fall apart? After German reunification, interest rates rose to over 9 per cent in the early [...]

  • Money in the pot? The cannabis trend could be the new gold rush

    November 16, 2018

    Is cannabis the new gold? And if so, are we at the gates of a greener and much more lucrative gold rush? Long gone are the days in which the legalisation of marijuana seemed impossible. Across the world, laws have fallen, new laws have been made, and an increasing amount of research has established that [...]

  • Fairytale economics will not enchant markets

    November 14, 2018

    In a remarkable break with the economic prudence of the past decade, policymakers in the west are taking their feet off the spending brakes. During the recent midterm elections in the US, President Trump hailed the continuing stream of positive economic data and Democrats’ warnings about the cost of tax cuts failed to cut through. Meanwhile the [...]

  • Inflation remains steady in October as CPI stays flat at 2.4 per cent

    November 14, 2018

    Inflation remained steady in October, with the Consumer Price Index (CPI) flat month on month at 2.4 per cent, according to Office for National Statistics data out today. Rising fuel costs and domestic gas prices offset lower prices for food and non-alcoholic drinks, as well as clothing and transport, leading to CPI staying unchanged from its September [...]

  • Move over Facebook and Apple, the next generation of customers has other ideas

    November 14, 2018

    A visit to Rochdale Sixth Form College was a cheering experience last week. This year, 55 per cent of A-levels were at grades A* to B. True, Eton and Winchester do better. But this track record shows that even poor boroughs – and Rochdale is one of the poorest – have the capacity to deliver high-quality [...]

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