Bank of England suffers bond setback as QE kicks off again August 9, 2016 The Bank of England’s attempt to buy long dated gilts as part of its quantitative easing (QE) programme hit a rough spot today, with the central bank failing to attract enough offers from investors. The Bank's reverse gilt auction was only 96 per cent covered – it had planned to purchase £1.17bn of government bonds with maturities longer than [...]
UK economy contracted in July amid Brexit fallout August 9, 2016 The UK economy contracted in July as the UK was left reeling from the fallout of the vote to leave the European Union, a leading economic think tank has estimated. The National Institute of Economic and Social Research (Niesr) said the UK shrunk by 0.2 per cent during the political turmoil of July. Niesr said the figures confirmed their [...]
Before the bell: What you need to know before the US market open August 9, 2016 US stocks are nearing record highs and China's inflation grew at its slowest rate in seven months. Here's what you need to know ahead of the US market open at 2:30pm London time. US stock markets are nearing all time highs (the S&P 500 hit an all-time high of 2,185.54 points yesterday, although it pulled [...]
Research shows people live longer during recessions August 9, 2016 A new study has found that mortality rates drop and people live longer during periods of economic hardship. For every one percentage point increase in unemployment, research published today by IZA World of Labour found there is a 0.5 percentage point fall in the number of deaths in developed economies. According to Nick Drydakis, a reader in economics at [...]
EU confirms no fines for Spain and Portugal over budget deficits August 9, 2016 Spain and Portugal will not be fined for breaking the EU's budget rules, it was confirmed today. European leaders have accepted the recommendation to let the countries off with a slap on the wrist, rather than impose a financial penalty which could have been equivalent to 0.2 per cent of GDP. Under the EU's stability and growth pact, members of [...]
Manufacturing sector shrunk in June as industry fears prolonged slowdown August 9, 2016 The UK's manufacturing sector started life after the EU referendum on the back foot, official statistics released this morning have confirmed. The industry shrunk by 0.3 per cent in June, according to figures from the Office for National Statistics (ONS) showing the slowdown started in the days before the UK's historic vote to untangle itself from [...]
UK posts mighty trade deficit in month of EU referendum August 9, 2016 The UK trade deficit ballooned to a huge £5.1bn in June, far ahead of expectations and raising more questions about how the UK's exporters and importers will fare after the referendum. The figures, released this morning by the Office for National Statistics (ONS), also showed imports reached their highest ever level in a single month [...]
Sterling slips on more Bank of England stimulus speculation August 9, 2016 Sterling has fallen to a one-month trough against the dollar and bond yields have set a new all-time low this morning as the prospect of ultra-loose monetary policy from the Bank of England continues to drag on the currency. The pound slipped below $1.30 for the first time since mid-July overnight after monetary policy committee (MPC) hawk [...]
Hope for Brazil: Away from the Olympics, it’s politically troubled with a crumbling economy, but can Brazil turn a corner? August 8, 2016 The Rio Olympics have got off to a great start, but this year’s host country has largely been in the news for all the wrong reasons. The spreading of the Zika virus is a worrying development for Brazilian authorities, who are firefighting on several fronts, including corruption probes and a troubled economy It wasn’t like this when [...]
The pound has not been so sterling after Brexit: How currency weakness will hit our travel plans, inflation and trade August 8, 2016 The pound has been steadily falling as the Brexit referendum and Bank of England’s moves to shore up the economy have pushed investors into selling the pound. Its downward slide over the last 12 months means sterling is now worth 16 per cent less against the dollar, at £1/$1.31, compared to £1/$1.56 previously. It’s even [...]