EU referendum: Survey shows that firms will stop hiring because of vote, but only if the UK votes for Brexit May 5, 2016 Employers say that jobs will be at risk if Britain votes to leave the European Union, but few are actually cutting back on hiring in the run-up to the vote, according to a new survey by recruitment firm Reed. A clear majority – 85 per cent – of businesses said that the EU referendum had [...]
Standard and Poor’s says the UK’s ageing population could result in a massive increase in UK debt May 5, 2016 Ageing populations will cause debt levels in advanced economies to reach potentially unsustainable levels over the next three decades, Standard and Poor’s (S&P) has warned today. The ratings agency said that without policies which address high – and increasing – levels of public spending that are going towards supporting older populations, credit ratings would be cut, causing [...]
Services PMI comes in at three-year low in April – rounding off hat-trick of weak economic data May 5, 2016 The UK economy could be growing at its slowest pace in three years, according to purchasing managers' index (PMI) data out this week, which has raised serious concerns about the security of the economic recovery. Today it was the turn of services – which makes up four-fifths of the UK economy – to show signs [...]
The European Central Bank thinks it still has some bullets left May 5, 2016 The European Central Bank (ECB) has insisted – again – that it stands ready to do whatever it takes to make sure the Eurozone does not slip into a Japan-style spiral of deflation. In its monthly economic bulletin published this morning, the ECB said that its extraordinary monetary policy measures – negative interest rates and [...]
Crude oil surge pushes up the price of petrol at the pumps May 5, 2016 Motorists have suffered the second consecutive month of price rises at the pumps as a result of the rebound in the oil price. A 25 per cent increase in the cost of a barrel of oil from $36.51 to $45.49 has sparked the highest price since 10 November 2015, motoring group RAC data for April shows. [...]
Goodbye, €500 note. We hardly knew you May 4, 2016 The €500 note will be withdrawn from circulation by the end of 2018, the European Central Bank (ECB) confirmed this afternoon. The violet-coloured note, dubbed the "Bin Laden" in parts of the Eurozone because of how rarely it is spotted in everyday life, is one of the highest value notes in circulation anywhere in the world. Its design features [...]
London mayoral election: Freezing fares or cutting council tax? How Zac and Sadiq’s giveaways stack up May 4, 2016 Elections are rarely free from giveaways. Labour Mayoral hopeful Sadiq Khan’s flagship policy is to freeze Transport for London’s fares for four years. His main contender, Conservative candidate Zac Goldsmith, has made clear he would freeze the council tax collected by the Mayor. This is one of the few big policy differences between the two [...]
EU referendum: Brexit would mean higher inflation and more quantitative easing May 4, 2016 The Bank of England may have to extend its bond-buying quantitative easing programme if the UK votes to leave the European Union, an asset management firm has said today. Hermes Investment Management warned that Brexit would cause the pound to fall – potentially to around $1.20 – and growth would be hit, putting the Bank of England [...]
Do these five charts explain the productivity puzzle? May 4, 2016 What do the UK’s jobs boom, the rise of self-employment, the plethora of start-ups, short-term investors, meetings, access to finance, employee wellbeing, the skills shortages, too much government and not enough government have in common? They’ve all been blamed for the UK’s productivity crisis. “Productivity” – a slightly woolly measure which basically divides total economic output by [...]
Construction industry grows at its slowest pace in three years May 4, 2016 The makers and manufacturers are marching a little slower than they once were – and a great deal slower than chancellor George Osborne would like. Fresh purchasing managers' index (PMI) figures for the construction sector out this morning showed that the building industry expanded at its slowest pace since June 2013 last month. That comes off [...]