Should global stock markets expect a correction by the end of the year? September 22, 2016 Adrian Lowcock, investment director at Architas, says Yes. Markets have been stable for months and have been able to shrug off the surprise Brexit vote, weak economic growth and concerns over the Italian banking system. Investors seem to think that markets can handle anything, but they are far too sanguine. This is the perfect environment for [...]
There are plenty of lessons the German Chancellor can learn from yesterday’s men September 22, 2016 What is it about the rule of 10? Ten years at the top in European politics is more than enough. This month Angela Merkel celebrates her eleventh anniversary as Chancellor of Germany. She now has to decide whether to go on and on and seek another four years in the federal elections in September 2017. [...]
A divided Fed holds: US leaves interest rates unchanged as case for second rate hike in almost a decade strengthens September 21, 2016 The US Federal Reserve's rate-setting Federal Open Market Committee (FOMC) has voted to leave interest rates on hold but has set the scene for a hike before the end of 2016. The Fed raised its benchmark overnight interest rate to a range of 0.25 per cent to 0.50 per cent in December – the first rate hike [...]
Yen drops then pops on Bank of Japan announcement September 21, 2016 The Japanese yen has hits its strongest level since the end of August, just hours after the Bank of Japan announced an imaginative new approach to monetary policy. The yen initially fell to ¥102.74 against the dollar as the BoJ unveiled its latest package, before gradually strengthening throughout morning trading in London to stand at ¥100.86 against the [...]
Before the bell: What you need to know before the US market open September 21, 2016 Markets are already cheering the US Federal Reserve and Mylan's chief executive is set to answer questions on the latest drug pricing scandal. Here's what you need to know before the US open at 2:30pm. The US pre-market is climbing ahead of the open, betting the Fed will not move to hike interest rates when it [...]
Can we call it a comeback? Growth forecasts for UK economy upgraded for second consecutive month September 21, 2016 Economists are more confident about the UK's growth prospects than at any point since the EU referendum. Despite today's downgrade from the Organisation for Economic Cooperation and Development (OECD), investment banks and think tanks that produce regular updates on the UK economy have upgraded their outlook over the past month. According to a collection of [...]
Bank of England finds corporate calm before the Brexit storm September 21, 2016 The UK economy is ticking over in the wake of the EU referendum, although signs of a slowdown, a rise in inflation and pressure on jobs and wages are beginning to show, a survey for the Bank of England has shown. The Bank's agents summary of business conditions, which is compiled from Threadneedle Street's sprawling network [...]
The OECD just slashed its UK growth forecast and warned the world is in a “low-growth trap” September 21, 2016 One of the world's most influential economic organisations has slashed its forecast for UK growth next year. The Organisation for Economic Co-operation and Development (OECD) said today it expects UK GDP to grow one per cent in 2017 – down by one percentage point from its prediction in June. However, this year, growth will hit 1.8 [...]
Deficit creeps down but government spending still higher than expected September 21, 2016 The government was forced to borrow a whopping £10.5bn in August as the aim to reduce the deficit suffers its latest stumble. The shortfall, which measures the difference between how much the government spends and receives in tax revenues, was down from £11.4bn in the same month last year, but still higher than economists' expectations. [...]
European Central Bank’s new ideas team still hasn’t had an idea September 21, 2016 Fed up with having to do the heavy lifting of the Eurozone recovery, the European Central Bank (ECB) has been upping the ante for governments to turn up to the party. President Mario Draghi makes a song and dance of the need for "national governments" to implement "structural reforms" to haul the Eurozone out of miserly [...]