Look to Twitter for why Britain’s economy proved Project Fear wrong October 5, 2016 The economic data on post-Brexit Britain is beginning to emerge. We discovered last month that employment in May to July grew by 174,000 compared to the previous three months. Last week, the Office for National Statistics published its estimate for the output of the service sector of the economy in July. This showed a 0.4 per [...]
Few signs of hope for the Brexit-battered pound October 5, 2016 Sterling could fall further if the UK looks on course for a rocky divorce with the EU, currency analysts have warned. Forecasters currently expect the pound to move sideways against both the dollar and the euro between now and the end of the year, but after a dramatic few days of trading, speculation over the terms [...]
Financial markets wobble after ECB taper talk October 5, 2016 European markets continued to be rattled by the fallout from reports the European Central Bank (ECB) has started planning how to end its money printing programme today. Borrowing costs across the Eurozone rose for the second day in a row as investors carried on digesting the possibility of a tightening of monetary policy from the Frankfurt-based ECB. [...]
US rate rise on the agenda as services sector storms ahead October 5, 2016 A pre-election rate hike in the US is back on the cards after a stellar performance from the country's services firms in September. The sector, which makes up around two-thirds of the world's largest economy, grew at its fastest pace this year, according to the closely-watching ISM non-manufacturing purchasing managers' index (PMI). The PMI came [...]
ECB sees no risk of banking crisis in the Eurozone, official says October 5, 2016 The European Central Bank (ECB) sees no risk of a banking crisis in the Eurozone despite some "individual cases" of lenders in trouble, senior ECB supervisor Ignazio Angeloni said today. Banking shares have been volatile across the single currency area this year, especially in recent weeks, as Deutsche Bank awaits confirmation of a multi-million-dollar fine [...]
Theresa May criticises Bank of England for making people poorer October 5, 2016 Theresa May has come dangerously close to attacking the Bank of England in unprecedented comments on the tools it is using to support the economy during the aftermath of the financial crisis recession and the EU referendum. In her speech at the Conservative Party Conference today, May said: "While monetary policy with super-low interest rates and quantitative easing provided [...]
Before the bell: What you need to know before the US market open October 5, 2016 The pound has recovered some of its losses after mammoth sell-offs all week, while the gold price is steadier after its biggest one-day drop since 2013. Here's what you need to know before the US open at 2:30pm London time. US futures are pointing down in the pre-market. The S&P is off by 0.06 per cent, the [...]
Eurozone speeds into slowdown with weak shop sales October 5, 2016 The Eurozone ended summer with a stumble, new economic data has shown, as political concerns begin to weigh on the continent. Retail sales, one barometer for consumer confidence, dropped by 0.1 per cent in August, Eurostat confirmed this morning, while it also dealt a significant downgrade to the sector's performance in July. The body now [...]
Brexit recovery continues with robust services numbers October 5, 2016 The post-referendum slowdown is set to be significantly better than first feared, vital services industry data out this morning has confirmed. The closely-watched purchasing managers' index (PMI) for the sector which accounts for three-quarters of the UK economy came in above expectations at 52.6 for September – solidly in the above-50 zone which signifies expansion. The [...]
Bank of England slaps down moaning pension funds October 5, 2016 The Bank of England has told pension funds to stop blaming low interest rates and quantitative easing for their measly returns and ballooning deficits. Ben Broadbent, deputy governor of the Bank with responsibility for monetary policy, said this morning that without the Bank’s swift rate-cutting action in both 2009 and more recently in the wake of [...]