Surprise rise in wage growth as unemployment falls – but claimant count rises December 14, 2016 UK wage growth rose more strongly than expected between August and October, hitting 2.5 per cent – beating expectations of a fall to 2.3 per cent. The figure was a rise from 2.4 per cent in July to September. Regular pay, which doesn't include bonuses, rose 2.6 per cent, up from 2.4 per cent in July [...]
A fairy tale of the future: How Brexit transformed Britain… into Germany December 14, 2016 When Britain voted to leave the European Union, few people expected it would result in the UK becoming more like Germany, the country that runs the show. But that’s what ended up happening, and it was in 2017 that the process really began. Industrial strategy was the first step. Theresa May’s government decided that Britain’s [...]
Holdout Remainers’ “delay and pray” strategy is wishing the UK economic harm December 14, 2016 The strategy is perfectly clear. In fact, it has even been written down and elucidated on broadcast media for us. Jolyon Maugham QC (who is seeking to bring a case in the Irish courts questioning the revocability of triggering Article 50) and other hold-out Remainers are now looking to prevent Brexit by making Britain’s negotiating [...]
As MPs debate the idea, should Britain create its own Sovereign Wealth Fund? December 14, 2016 John Penrose, Conservative MP for Weston Super Mare, says Yes. Brexit gives us a once in a generation opportunity to recast the kind of country we want to be. We’ve got an unbalanced, rock-and-roll economy that’s too dependent on consumer spending and doesn’t invest enough for the future. That makes us less economically productive than [...]
Inflation rises to its highest in two years as weak sterling takes its toll December 13, 2016 The UK's inflation rate rose to 1.2 per cent in the year to November, up from 0.9 per cent in October – and beating expectations of 1.1 per cent. That puts it at the highest rate since October 2014, when it was 1.3 per cent. The rise was driven by hikes in clothing prices, motor [...]
As Trump enters the White House, will the Federal Reserve hike interest rates more aggressively in 2017? December 13, 2016 It was Ronald Reagan who warned against inflation in 1984 by describing it creeping “like a thief in the night to rob our savings, rob our earnings, and take the bread off our tables.” It is ironic then that President-elect Donald Trump, who borrowed his forebear’s campaign slogan “Make America Great Again” to win the [...]
As analysts predict softer growth in both 2017 and 2018, are we still being too pessimistic about Brexit? December 13, 2016 | City Talk Gerard Lyons, co-chair at Economists for Brexit, says Yes. The UK’s big challenge is that we talk ourselves into an unnecessary downturn. Across the globe, people read constant negative comments from UK economists and politicians. The fact they were wrong before the EU referendum doesn’t seem to bother them. Despite this, many global firms are [...]
Chancellor Philip Hammond calls for a four-year “soft Brexit” as the UK leaves the EU December 12, 2016 Chancellor Philip Hammond has backed a transitional period to ease Britain’s exit from the European Union, bringing relief in the Square Mile but exposing a potential split with senior Cabinet colleagues. Hammond said yesterday that “thoughtful politicians” could see the need for a “longer period to manage the adjustment” of leaving the EU. The comments [...]
Goldman Sachs banker Gary Cohn becomes Donald Trump’s main economic adviser December 12, 2016 Donald Trump has announced the appointment of former Goldman Sachs banker Gary Cohn as his most important economic adviser. Cohn has officially been named as director of the National Economic Council. He will be tasked with advising the President-elect on implementing his unorthodox economic campaign promises, which purportedly combine broad tax cuts with big infrastructure [...]
UK economy gets end of year boost as City jobs market flourishes December 12, 2016 The economy will end the year on a high note with an upswing in the City’s job market, improved growth forecasts and a brighter outlook for business output. A survey from professional services recruiter Morgan McKinley out today shows the City’s job market picking up pace again following the Brexit vote. There was a six [...]