Germany needs to lead its fellow eurozone members away from uncertainty, says IMF August 6, 2013 The International Monetary Fund (IMF) has increased Germany’s 2014 growth forecast to 1.4 per cent from 1.3 per cent but is divided on whether the country requires more fiscal stimulus (release). The IMF said it agreed with the German government's prudent economic management and a modest loosening of fiscal policy to boost domestic demand, and [...]
Niesr sees UK GDP growth accelerate in three months to July powered by consumer spending August 6, 2013 The National Institute of Economic and Social Research (Niesr) has estimated UK GDP rose by 0.7 per cent in the three months ending in July after growth of 0.6 per cent in the three months ending June 2013. Niesr said their latest estimates suggest a narrowing of the UK's large negative output gap, underpinned by [...]
Another electric car maker finds crucial cost savings needed to drive this market forward August 6, 2013 General Motors has cut the price of its 2014 model of the Chevrolet Volt by $5,000 (£3,252) to boost demand for the electric car. Prices will start at $34,995, plus an $810 destination fee, although prices could fall as low as $27,495 if federal tax credits are taken into account (release). According to the United [...]
Political crisis in Portugal saw ECB support for banks hit highest level since 2012 August 6, 2013 The European Central Bank increased its lending to Portuguese banks to €50.1bn in July from €49.4bn in July – the highest since December. This was the month a political crisis gripped the country, triggered by the resignation of CDS-PP leader Paulo Portas from his post as foreign minister, and later reinstated as deputy prime minister. [...]
US trade deficit narrows to lowest since October 2009 – upwards GDP revision likely August 6, 2013 The US Bureau of Economic Analysis has said the country’s trade deficit narrowed in June, coming in at a lower than expected $34.22bn. This was down from a downwardly revised $44.10bn deficit the month before. Analysts had expected to see the trade deficit shrink slightly less drastically to $43.50bn. June's trade deficit was its lowest [...]
Fed’s Lockhart says he wouldn’t rule out tapering in October August 6, 2013 The Fed's Dennis Lockhart has said that he wouldn't rule out tapering at the the October Federal Open Market Committee (FOMC) meeting. While analyst speculation has rested on tapering beginning in September or December, this upsets things somewhat. Rumours about tapering – or a reduction in the rate at which the Fed expands the monetary [...]
Munich Re shares fall as flooding hits first half profits August 6, 2013 The world’s biggest reinsurance company Munich Re has reported a 4.5 per cent fall in first half profits to €1.5bn (£980,000) as it was hit by claims from natural disasters in the second quarter of the year (release). Share prices are down around 4.5 per cent. Net income fell to €529m from €808m in the [...]
Ratings agency says Help to Buy will push up house prices August 6, 2013 Ratings agency Fitch has said that chancellor George Osborne's mortgage backing scheme Help to Buy will "probably push up house prices" (release). The policy is also unlikely to help with very low housing supply, Fitch says that the "impact on the number of new homes built is less clear". House builders stand to benefit, but [...]
IMF’s youngest ever chief economist Raghuram Rajan appointed as governor of India’s central bank August 6, 2013 Raghuram Rajan has been named as the latest governor at the Reserve Bank of India. He presently works as the chief economic adviser to the Indian government and was hotly tipped for the role. Rajan is also a successful academic, as a professor of finance at the University of Chicago Booth School of Business. He [...]
Paris air show drives German factory orders to highest growth rate in eight months August 6, 2013 The volume of new orders, shipments, unfilled orders, and inventories reported by German manufacturers rose 4.3 per cent in June compared to the year before. Analysts had expected a 0.2 per cent fall, down from the 2.0 per cent decrease in May. Compared to the month before, factory orders were up 3.8 per cent – [...]