The City has a loud voice in the Brexit debate December 12, 2016 How are we to discern the government's evolving Brexit strategy? Should we sit patiently and wait for strategic leaks? Should we scrutinise every handwritten memo photographed on its way into Downing St? Should we listen to the barrage of voices off, demanding action or concession in certain areas? Perhaps we should simply wait for the [...]
It’s Europe that will push for a conciliatory Brexit – because Britain holds all the aces December 12, 2016 A strong case can be made that the UK economy is in a unique position within the European Economic Area (EEA). Unique, because its membership is to the categorical financial benefit of all other members. Other countries gain either through exports to or via businesses located within Britain. Were the UK to be sent outside the [...]
With the Fed set to hike interest rates this week, will a stronger dollar pose a threat to the world economy? December 12, 2016 Craig Melling, investment manager at Progeny Asset Management, says Yes. The recent boost to the dollar since the US election has been welcomed by investors and stock markets alike. However, looking more closely at the impact of a surging dollar leads us to believe that this is a potential setback for the world economy. First, [...]
Business as usual gives a post-referendum boost to GDP forecasts but inflation is going to dent growth, says British Chambers of Commerce December 12, 2016 A “business as usual” approach from UK businesses has kept the economy steady since the EU referendum, according to the British Chambers of Commerce (BCC), as they revised up growth for 2016 and 2017. The business lobby group’s forecast of this year’s annual GDP growth rate has been upgraded to 2.1 per cent, as firms [...]
Bermudian government reacts with fury as Oxfam report names it world’s worst tax haven December 12, 2016 The Bermudian government has reacted with fury to an Oxfam report that places it at the top of a list of global tax havens. The Oxfam list ranks the countries by how far it judges them to “facilitate the most extreme forms of tax dodging”, including low corporation tax rates and non-cooperation with tax avoidance [...]
Job market shakes off Brexit blues as number of City roles up for grabs soars in November December 12, 2016 Londoners who plan to spend the festive period polishing off their CVs are in luck, as the City job market has surged back into action following the Brexit vote. Figures out today from professional services recruiter Morgan McKinley show a six per cent year-on-year increase in professional jobs available for November, the first year-on-year rise recorded [...]
Investors eye prospects for 2017 tightening as Federal Reserve rate rise is seen as near certainty December 11, 2016 The US Federal Reserve is set to raise interest rates for the first time since December 2015 as it continues attempts to move away from a period of historically low interest rates, with investors set to focus on the prospects for further tightening over the course of 2017. The Federal Open Market Committee (FOMC) will [...]
Generation unlucky: Millennials are feeling sorry for themselves financially (and don’t mention Brexit) December 10, 2016 With Christmas on the way, spare a thought for the millennials in your life. They are are probably feeling hard done by financially, and miserable about 2016’s Brexit vote. Maybe you could consider putting another tangerine in their stocking, or adding an extra £5 on to their HMV gift card, to make up for it. A [...]
The trade deficit narrowed in October for the first time since the Brexit vote – but not because of weak sterling December 9, 2016 The trade deficit narrowed to £2bn in October, new figures have shown – although it's unlikely it was thanks to the weak pound. The figure, published by the Office for National Statistics (ONS) this morning, was down from £3.8bn in September last year – and driven by exports, which rose £2bn, while imports fell by [...]
Editor’s notes: Calm down, the banks are not about to run for the European hills December 9, 2016 The government has agreed to set out its Brexit plans to parliament. While this will fall short of outlining a full negotiation strategy, it has been welcomed by politicians and business groups as a necessary step towards providing some clarity. However, there appears to still be confusion in some quarters over the fate of the City, [...]