IMF revises growth forecasts downwards and says global outlook has worsened after Brexit vote July 19, 2016 The UK's vote for Brexit has added "significant uncertainty to an already fragile global recovery", the International Monetary Fund (IMF) said in its World Economic Outlook (WEO) today – as it warned that Britain could potentially go into recession if negotiations with the EU do not proceed smoothly. The IMF said the result of the EU [...]
Sterling edges off session lows as inflation beats expectations July 19, 2016 The pound reversed some of its losses against the dollar this morning, after new figures showed inflation beat expectations in June. Prices rose 0.5 per cent in the year to June, the Office for National Statistics (ONS) said – up from 0.3 per cent in May, and beating economists' expectations of 0.4 per cent. The [...]
Shot in the Arm for the City as £24bn mega-deal is agreed July 19, 2016 British tech giant Arm Holdings yesterday agreed to a £24.3bn takeover by telecoms group Softbank, in a move that would go down as the second largest outbound Japanese deal on record. Softbank has pounced for the Cambridge-based chip-maker following a sharp drop in the value of the pound, largely prompted by last month’s vote to leave [...]
Relax! New report predicts UK will avoid severe recession and house pricing crash post-Brexit vote July 19, 2016 The UK can breathe a collective sigh of relief today, as a report revealed the country should avoid a drastic downturn following the Brexit vote. Although the figures from PwC forecast a slowdown in GDP growth for the next few years, they did not project very negative growth. The accountancy giant predicted GDP growth of 1.6 [...]
Bundesbank steps up attempts to seize control over euro bailout cash July 18, 2016 The German central bank has called for the role of the European Commission in managing Eurozone bailouts to be watered down. In its monthly report, published today, the Bundesbank said it wants the finance ministers of Eurozone countries to set and enforce the rules that govern payments made by the European Stability Mechanism (ESM). It [...]
The Bank of England says issuing an official cryptocurrency could raise economic output July 18, 2016 Introducing a Bitcoin-style official currency could boost economic output, help maintain financial stability and smooth the cycle of boom-and-bust, the Bank of England has found. A new report from wonks at Threadneedle Street has modelled the impact of a central bank issuing a new legal tender based on blockchain or distributed ledgers – the technology behind Bitcoin – finding [...]
John Kerry: US-EU trade deal more important because of Brexit vote July 18, 2016 Striking a far-reaching trade deal between the European Union and the United States is more important than ever following the UK's vote for Brexit, the US secretary of state John Kerry said today. In a jam-packed meeting with top EU officials, where recent events in Turkey and Nice dominated the agenda, Kerry reiterated US support for an ambitious [...]
MPs call for post-Brexit digital plan – or risk UK’s fintech success July 18, 2016 The UK's position as a world leading centre for fintech is at risk if the government fails to address the issues facing the £20bn a year industry as a result of the vote to leave the EU, a leading group of MPs have warned. The government must act now to stop investor confidence in the UK's tech and [...]
Labour will need more than a change of leader July 18, 2016 Attention politics junkies: do you feel robbed of a drawn-out party leadership election? Before Andrea Leadsom dropped out of the Tory race we were all set for a nine-week campaign. And then before it had even started, there was just one candidate remaining. If you’re wondering what political news to feast on this summer instead [...]
Despite the comfort from greater political stability, could sterling still reach parity against the US dollar? July 18, 2016 Lukman Otunuga, research analyst at FXTM, says Yes. Sterling received a pummelling in June, with prices crashing to 31-year lows against the dollar following the shock Brexit victory. Financial markets were rattled, and it was obvious that the Brexit outcome was severely underpriced, with even the bookkeepers being completely on the wrong side of the [...]