Brex-what? Confidence up as Eurozone still doesn’t care about UK’s exit July 28, 2016 The Eurozone recovery remains resilient in the face of the UK's decision to break away from the EU, yet more economic data out this morning has shown. The leading barometer of consumer and business confidence, the official economic sentiment indicator (ESI), increased across the Eurozone in July, with nerves about the fallout from Brexit staying rooted on this [...]
What Brexit? House prices inched up in July July 28, 2016 Brexit, what Brexit? The property market defied the uncertainty of the EU referendum result – for now – new data reveals. The full impact on the housing market has yet to be felt as prices edged up ever so slightly in July, according to Nationwide. Read more: Property shares are sliding after downbeat house price forecasts Property [...]
Take off! London lifted by green light for City Airport expansion as markets touch post-Brexit highs July 28, 2016 The City received a double boost yesterday as London City Airport was given the go-ahead for a major expansion while the latest GDP data beat expectations and lifted the FTSE 100 to a 12-month high. Chancellor Philip Hammond, transport secretary Chris Grayling and communities secretary Sajid Javid gave the green light to the multi-million pound [...]
Emerging markets are winning the dash for cash after Brexit vote July 27, 2016 Emerging markets are one of the big winners from the UK’s vote to leave the EU as economies have benefitted from an influx of foreign capital. With bond yields crashing in the advanced world following the shock vote for Brexit on 23 June, Standard and Poor’s (S&P) said “yield-hungry investors” had flocked to more exotic [...]
US Federal Reserve paves the way for pre-election rate rise July 27, 2016 The Federal Reserve signalled the way to an interest rate rise before the US Presidential Election this evening as it heralded the strong pace of the economic recovery. Rate-setters left policy unchanged on this occasion, as expected, but a hike for only the second time since the financial crisis is now a distinct possibility for [...]
Have we seen the end of volatility in the currency markets? July 27, 2016 In the hours after the referendum, sterling suffered its largest ever decline in the era of free-floating currencies. The pound fell from $1.50 just after the polls slammed shut to $1.33 as the count showed the Brexit camp were out in front. Sharp spikes up and down in the value of sterling characterised the referendum campaign. By [...]
EU Commission refuses to call for fines against Spain and Portugal over budget breaches July 27, 2016 The European Commission will not fine Spain and Portugal for breaking the EU's budget rules, despite calls for the EU to take a hard line against the two countries. Spain and Portugal both ran budget deficits which exceeded Eurozone guidelines which prohibit states in the single currency area from running shortfalls of more than three per cent of [...]
Brexit fears? Pah: GDP growth in the second quarter just beat expectations July 27, 2016 The pound briefly rose against the dollar in early trading, after figures from the Office for National Statistics (ONS) showed the UK's economy grew 0.6 per cent in the second quarter, beating expectations. Sterling edged up to $1.3134, from a session low of $1.3106, after growth rose above the 0.5 per cent economists had expected for [...]
Spending growth through shopping vouchers – should central bankers be trying new things? July 26, 2016 Over the last few months the term helicopter money – once only used to mock former Fed chair Helicopter Ben – has become common place. For that we can thank the Bank of Japan and its increasingly desperate attempts to kick start growth, culminating this Friday with its latest policy meeting. Many economists are expecting the Bank of Japan [...]
Brexit won’t kill the EU: It’s more likely to be a long-term blessing July 26, 2016 Britain's vote to leave the European Union has engulfed the kingdom in a political, constitutional and economic storm. But it has also plunged Europe into uncharted waters. It may not be prepared for this challenging, uncertain course. We’ve so far witnessed a striking lack of consensus among policy-makers. This is not only in regards to [...]