EU finance tax to wipe £3.6bn off UK savings February 18, 2014 THE EU’S financial transaction tax (FTT) would tear a €4.4bn (£3.6bn) hole in UK savings even though the Treasury would gain no revenue from it, according to new forecasts. The huge sum would be wiped off the value of equities and bonds in the UK if European countries pursue the levy, despite Britain being outside [...]
Three market-moving political risks leave little room for error February 17, 2014 Italy, Scotland and the EU could all prompt serious ripples AS ITALY’S Democratic Party leader Matteo Renzi was given the mandate to form a new government yesterday (the country’s fourth since the start of the Eurozone crisis in 2009), Italian 10-year bond yields dropped to their lowest level in eight years. Uncertainty stemming from Italy’s [...]
CNBC Comment: Strong sterling could swing Bank on rates February 17, 2014 IF YOU’RE thinking about going abroad soon, the good news is that the pound just keeps getting stronger. Although the rally took a breather yesterday, sterling is up at five-year highs against a basket of currencies, and up near a three-year peak versus the dollar. This is being driven by two factors. On the one [...]
DailyFX Tips & Picks: How to trade with the trend with this popular indicator February 17, 2014 WHAT if I told you that, if you trade with the trend, you’re more likely to be profitable? Now what if I told you that there is an indicator that helps you identify the trend to ensure you’re on the right side of the market? There is, and it’s called Moving Average Convergence Divergence (MACD). [...]
DailyFX Tips & Picks: Analyst’s pick February 17, 2014 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Sterling-yen short invalidated; sterling-dollar hits key level Expertise: Fundamental and technical analysis with risk management Average time frame of trades: A few hours to a few weeks Last week I suggested that a “close above ¥168.21 would portend to further strength in the near-term” for sterling-yen. Almost immediately our [...]
US factories have been hit by extreme weather – but there’s no need to worry February 14, 2014 Industrial production in the US is the latest economic release to take a hit from the dreadful weather the country’s been experiencing. Production fell 0.3 per cent in January, according to figures from the Federal Reserve – it was expected to increase 0.3 per cent. Manufacturing output dropped 0.8 per cent as the severe weather [...]
Mark Carney and George Clooney to appear in the same room February 14, 2014 Sorry to bust the hopes of all those thinking they might be one and the same. Bank of England governor Mark Carney and Hollywood silver fox George Clooney are both to appear on The BBC's Andrew Marr Show. Or should that be Mark Clooney and George Carney? We get confused. Many say that Mark Carney [...]
Italian PM Letta tweets resignation February 14, 2014 Italian prime minister Enrico Letta has just tweeted that he’s resigning. Letta says he's at the Quirinal Palace – the official residence of the Italian President – to tender his resignation. He thanked those who have helped him over his nine months in office, repeating his motto: “Every day as if it were your last”. [...]
Worrying failings in the annuity market are not being addressed February 14, 2014 THE FCA’s report on the annuities market confirms that customers are not being well-served by insurers. The Report is welcome but, rather than getting on with the urgent reforms required, the FCA is launching another review, leaving thousands at risk of poor value, unsuitable pensions for the rest of their lives. More delays mean more [...]
The Scottish nationalists aren’t credible on keeping sterling February 14, 2014 THE gloves are finally off. The London political establishment’s message to Scotland is clear: stay in the UK, or lose the pound. The nationalists are in deep trouble on this question, but as ever the argument is more complex than both sides might imagine.Is the Scottish National Party (SNP) right that it could keep sterling, [...]