No wonder the public doesn’t trust Labour with the economy – shadow chancellor John McDonnell can’t even add up January 5, 2017 Among its extensive list of New Year’s resolutions, the Labour party would have presumably included: “Try to win back an ounce of economic credibility”. Under the hapless leadership of socialist fanatics Jeremy Corbyn and John McDonnell, this once-proud party has plummeted in the polls, with a survey late last year revealing that just 18 per [...]
Increased turnover growth in sights for British companies – but inflation looms January 5, 2017 British business expectations of turnover growth have increased after a post-referendum dip, according to a new survey of more than 7,000 firms – although predictions of price rises have also risen sharply. Confidence in increased earnings increased at the end of the fourth quarter by seven percentage points to hit a net positive rating of [...]
US interest rates could rise higher than expected this year, minutes from the US Federal Reserve’s December meeting show January 4, 2017 The latest US Federal Reserve minutes have shown officials at the central bank believe interest rates could be forced to rise higher than expected this year, if tax cuts and aggressive fiscal policy are enacted under President-elect Donald Trump's administration. Market reactions to the US presidential election and the expectation of aggressive fiscal policy drove officials to hike interest rates [...]
The key US dollar three-month Libor rate rises above one per cent for first time since 2009 January 4, 2017 The key benchmark interest rate for banks to lend to each other has risen above one per cent for the first time since May 2009, in a long overdue sign of recovery in banking sector lending. The three-month US dollar Libor (London Interbank Offered Rate) rose to 1.00511 after being fixed at 0.99872 on Tuesday, [...]
Boost for ECB as Eurozone inflation reaches highest point since 2013 January 4, 2017 Eurozone inflation rose to its highest point since 2013 as higher oil prices fed through to the big increase, in welcome news for efforts by the European Central Bank (ECB) to boost Europe's economy. The annual rate of inflation rose to 1.1 per cent in December, according to flash estimates from the European Commission, almost [...]
UK home-buying stays solid in November but consumer credit rises by highest amount since 2005 says the Bank of England January 4, 2017 British house purchase numbers stayed flat in November, but still remained steady above pre-referendum levels, while UK consumer borrowing increased by the most since March 2005. UK banks approved 67,505 mortgages in November, compared to 67,371 in October, according to the Bank of England (BoE), but remortgaging levels rose to the highest levels since October [...]
The UK’s construction sector just had its best month since March January 4, 2017 Output in the UK's construction sector showed a surprise jump in December – causing the industry to enjoy its best month since March. Markit's purchasing managers' index (PMI) for the sector rose to 54.2 in December, up from 52.8 in the previous month – despite economists expecting the figure to be flat. Any number above [...]
Eurozone economic activity increased at its fastest rate since the debt crisis in 2011, according to purchasing managers’ index (PMI) January 4, 2017 Economic activity in Eurozone industry in December expanded at the fastest pace since the depths of the currency union’s debt crisis, according to a closely watched indicator. The Eurozone composite purchasing managers’ index (PMI) – which measures activity throughout the economy – was upgraded significantly to 54.4, after a flash reading of 53.9, despite activity [...]
Farewell to the game theory master who helped prevent a nuclear apocalypse January 4, 2017 Last year was a year of celebrity deaths. But perhaps the most significant of all received very little coverage. Just before Christmas, Thomas Schelling, Nobel Laureate in economics, died aged 95. In the early, tense years of the Cold War between America and the Soviet Union in the late 1940s and 1950s, Schelling’s ideas were [...]
Why businesses don’t need ‘certainty’ to thrive January 3, 2017 If last year taught us anything, it was to expect the unexpected. Just weeks into 2016, the world of economics was wondering if we were on the verge of another full-blown banking crisis. Expert opinions varied, with the most intelligent City analysts honest enough to admit they simply couldn’t tell if another crunch was around the [...]