Was Mark Carney right to absolve monetary policy of the blame for popular disillusionment with capitalism? December 7, 2016 Vicky Pryce, board member of CEBR, a former government economic adviser and co-author of It’s the Economy Stupid, Economics for Voters, says Yes. The impact of globalisation has on the whole been positive. It has lifted hundreds of millions out of poverty, created vast new middle classes and extended all our horizons. The consumer has [...]
Wanted: A bold government housing strategy that delivers for the young rather than the old December 6, 2016 If Brexit wasn’t dominating British politics, then one other issue would be: the lack of housing. If you know someone under 30, living in London and able to afford their first home, then your friend belongs to the country’s richest percentile. For most people, even for those on what used to be a decent median income, owning [...]
Widening US trade deficit gives Donald Trump a challenge to fulfil campaign reduction promise December 6, 2016 Rising imports pushed up the US trade deficit by over $6bn in October and factory orders increased faster than expected, as domestic demand continues to stay strong in the world’s biggest economy before the arrival of Donald Trump in the White House. Trump has promised to reduce the trade deficit when he takes office, but [...]
UK commercial property remains at risk of further losses says Bank of England December 6, 2016 The UK’s commercial real estate sector remains at risk of further losses according to the Bank of England (BoE), as the vote to leave the European Union continues to leave its mark. The BoE’s Financial Policy Committee (FPC) said “there was the risk of further adjustment in the sector” which could create knock-on risks for [...]
Eurozone GDP stays steady on 0.3 per cent in third quarter December 6, 2016 The Eurozone economy grew by 0.3 per cent in the period after the UK's Brexit vote, as some of Europe's most vulnerable economies accelerated slightly. Greece and Portugal both grew by 0.8 per cent in the third quarter, with the former doubling its growth rate from the second quarter. Portugal's growth rate accelerated even faster, [...]
Bank of England: Households will struggle to pay debts if interest rates rise December 6, 2016 UK households could struggle to meet debt repayments if interest rates rise, according to the Bank of England, as it confirmed the conclusions of last week's financial stability report. The Bank said "risk of a further sharp adjustment in fixed income markets remained” owing to the global economic environment. The minutes of the bank's Financial Policy Committee [...]
Italy’s referendum has started the clock ticking on the collapse of Europe December 6, 2016 There are real advantages to playing the dumb American. As much of the world thinks no one born on my continent could ever know anything about their country, I am at a perpetual advantage. Just over a week ago I found myself in Milan, explaining to investors the reasons for the Trump phenomenon. Late in [...]
Those who benefit from new infrastructure should pay for it December 6, 2016 To many people’s relief, there were not many big ideas in Philip Hammond’s Autumn Statement last month. In so far as there was anything new, it was the widely-trailed extra investment in innovation, infrastructure and housing. The justification for spending money on these things is that it will raise productivity and growth. There is no question [...]
Hefty bill from counterfeiting and piracy costs EU £71bn and 790,000 jobs each year December 5, 2016 Counterfeit goods and piracy cost the EU economy a whopping £71bn every year, according to research from the European Union’s intellectual property office. More than 7.4 per cent of sales, totalling £40bn, across nine sectors are lost in the 28-country bloc due to fake products including handbags, toys, pharmaceuticals and alcohol, as well as music [...]
Mark Carney takes aim at so-called stateless companies, as he jumps to defend Bank of England policies December 5, 2016 The Bank of England governor has this evening launched an attack on so-called "stateless corporations", in a wide-ranging speech aimed at creating a fairer economy and tackling inequality. Speaking at Liverpool John Moores University, Mark Carney called for stronger measures to confront inequality in order to stop more people turning their back on [...]