ECB restates commitment to €80bn quantitative easing programme October 6, 2016 The European Central Bank (ECB) has reiterated its commitment to its quantitative easing programme following rumours the central bank was preparing to taper its purchases of government and corporate bonds. In the minutes from its September meeting, released today, the ECB said "there should be no doubt about the [ECB's] determination to execute its asset purchases… and [...]
Before the bell: What you need to know before the US market open October 6, 2016 Deutsche Bank's rally is getting in to full swing, while Twitter shares are plunging in the pre-market. Here's what you need to know before the US market open at 2:30pm London time. US stock futures are tracking lower ahead of the open. The S&P is off by 0.21 per cent, while the Nasdaq is 0.17 per cent lower. [...]
Frosty reception for sterling as pound slips again October 6, 2016 Sterling is under immense pressure again today, as it slipped below the crucial $1.27 mark for the second day in a row, setting new post-referendum lows against both the euro and the dollar. In another brutal day for the pound, it lost 0.8 per cent against the US dollar to hit $1.2645 – a new 31-year low [...]
Angela Merkel has hit back at Theresa May’s plans for access to the Single Market October 6, 2016 Angela Merkel has hit back at Theresa May over her plans for maintaining access to the Single Market once the UK leaves the EU. The German chancellor told a business audience in Berlin she would not countenance giving the UK preferential access while allowing it to restrict the free movement of people. Theresa May told the [...]
Working like it’s 2008: UK productivity finally passes pre-crisis level October 6, 2016 British productivity levels have finally hit their pre-crisis level in the latest milestone in the UK's recovery. However, Britain still lags behind its G7 counterparts by a significant amount, falling behind the likes of Germany, the US and France in terms of economic efficiency. Read more: Do these five charts explain the productivity crisis? Productivity [...]
Pound endures another rough rollercoaster ride amid mixed signals October 6, 2016 Sterling was sent on another rollercoaster ride yesterday as traders scrambled to digest fresh economic data alongside the latest messages emerging from Theresa May’s ruling Conservative party. The pound plummeted below $1.27 for the first time since 1985 as foreign exchange investors brushed off a relatively positive survey of economic activity in the UK’s dominant services [...]
Well, now we know what Mayism looks like October 5, 2016 Come back George Osborne, all is forgiven. Yes, he may have ramped up the fear factor ahead of the referendum and yes, he may have missed his own targets and tinkered too often with the tax code but after Theresa May's speech yesterday there will be plenty in business who look back with affection on [...]
May’s big concessions to the Left risk returning the UK to the corporatist mess of the 70s October 5, 2016 Theresa May is an accidental Prime Minister. She is in Downing Street because David Cameron broke his word to the electorate and ducked out, while her rivals totally misjudged the situation. But she is certainly making the most of her position to attempt to reengineer the Conservative brand. Yesterday’s conference speech set out the stall. A [...]
The IMF is wrong to be so gloomy: The British economy is strengthening not weakening post-Brexit October 5, 2016 I have two problems with the latest analysis of UK economic prospects in the IMF World Economic Outlook released this week. First, it is slightly dated and doesn’t take on board some important recent releases. The IMF is behind the curve. Second, the UK forecasts for next year appear to be based more on assumption [...]
IMF warns global debt has hit a record $152 trillion October 5, 2016 The International Monetary Fund (IMF) warned today that global debt has hit a record $152 trillion (£119.2 trillion). The figure, more than twice the size of the global economy, was released in the Washington-based organisation's latest Fiscal Monitor. The IMF added about $100 trillion, or two thirds of global debt, belongs to companies or households which "can carry great [...]