Draghi to hold fire as Eurozone prepares for difficult summer season July 21, 2016 The European Central Bank (ECB) will edge closer towards extending its unprecedented stimulus package today as it enters a crucial period for the future of the single currency in the wake of the UK's Brexit vote. President Mario Draghi is expected to issue yet another last ditch call for national governments to help join him in the battle [...]
Nobody wins from a house price crash July 21, 2016 The full effects of the referendum on Britain’s economy are still unknown. Stocks are faring relatively well, with the FTSE 100 bursting over 6,700 and the FTSE 250 hitting a post-vote high. The pound remains slumped below $1.32, however, while consumer confidence appears to have taken a tangible knock. Many business leaders are worried, and some [...]
Brexit: How to make Britain’s EU retreat a treat for trade deals July 20, 2016 With Britain gearing up to leave the European Union, Westminster is in the midst of a trade frenzy. New departments are being formed, ministers appointed, and the search for trade negotiators is set to span hemispheres. The trio of Leave campaigners that will play a leading role in untangling the UK from Europe – Boris [...]
The Brexit vote will halve expectations of economic growth for the UK’s largest cities, according to the CEBR July 20, 2016 Some of the UK's largest cities will see economic growth drop by as much as half next year, according to one think tank, although some will be set to recover by 2018. A study of 38 cities by the Centre for Economics and Business Research found that while all would continue to grow, the expectations for [...]
Turn that frown upside down: Seven reasons Brexit is a good news story July 20, 2016 Brexit is not going to be a bed of roses but I’m not entirely convinced by the doom-mongers. In my view, and that of many others, Brexit came just in time. Europe is going down – fast Since the result, I’ve spoken to a number of economists and City figures. A growing number believe a [...]
Pound jumps as unemployment falls to 2005 low – but economists warn on Brexit effects July 20, 2016 Finally, some relief for currency traders, after the pound jumped this morning on new figures showing unemployment has reached its lowest since 2005. The Office for National Statistics (ONS) said the unemployment rate ell to 4.9 per cent in the three months between February and May this year, down from 5.6 per cent a year [...]
Bank of England: “No clear evidence” of business slowdown since Brexit vote (yet) July 20, 2016 The Bank of England has said there is "no clear evidence" yet of a slowdown in business activity since the Brexit vote. But it also noted that "business uncertainty had risen markedly" after the referendum. In its monthly agents' summary of business conditions, the Bank said: "As yet, there was no clear evidence of a [...]
Why the UK will need more than rate cuts to offset Brexit shock July 20, 2016 Although growth has been less vigorous than in previous recoveries, the UK economy has made real progress since the Lehman-crisis — the private sector has deleveraged, household balance sheets have strengthened and labour market participation has reached a record high. The near-term Brexit-induced confidence shock promises to reverse some of these positive trends. Uncertainty will reign [...]
The end of austerity is nigh – but not for the Eurozone July 19, 2016 Governments around the world could be nearing the end of austerity, as stable borrowing and low interest rates reduce the need to hack into spending or hike taxes. According to Capital Economics' public finance tracker, "fiscal policy in advanced economies is looser this year than last, and may well be eased further in the years ahead. [...]
Standard and Poor’s: The good times may be over for Europe’s top companies July 19, 2016 Brexit could spell the end of a relatively benign period for the UK and Europe's biggest companies, according to Standard and Poor's (S&P). In a new report, the ratings agency warned: "The UK's decision to leave the EU is likely to knock the European corporate sector out of the 'sweet spot' it has been enjoying". The body cited [...]