Forget post-referendum gloom: Britain’s economy will blossom outside the EU June 30, 2016 We have made history by becoming the first member state to give notice on our membership of the EU. But given that I will be explaining why I see the UK economy blossoming post-Brexit, it’s worth starting with a bit of my own history. I began student life in 1984 as an undergraduate at the [...]
S&P just slashed its rating for the EU from AA+ to AA June 30, 2016 S&P Global Ratings announced today that it was slashing its rating for the EU. The agency cut its long-term rating from AA+ to AA with a stable outlook, meaning it does not foresee the rating changing again in the next two years. The decision to cut the rate was a direct result of the UK's Brexit vote [...]
Mark Carney’s summer rate cut hint sends gilts into negative territory June 30, 2016 After much speculation, it's finally happened — gilts dipped their toe into negative territory earlier today. The yield on a UK gilt maturing in March 2018 fell from 0.14 per cent earlier today to just minus 0.003 per cent. Read more: The pound dived after Mark Carney laid the groundwork for a rate cut It came after Bank [...]
At the close: Just as things settle down Carney makes sure everyone’s still on their toes June 30, 2016 Just as the political situation had stolen the limelight from the markets in the aftermath of the UK's vote for Brexit, Mark Carney grabs it back. Carney, the governor of the Bank of England (BoE), told markets earlier this afternoon to expect a cut in interest rates as he warned the economy was in for a period of [...]
Sterling dives as Mark Carney lays the groundwork for an interest rate cut June 30, 2016 The pound took a dive against the euro and the dollar this afternoon, after Bank of England governor Mark Carney laid the groundwork for an interest rate cut. The pound fell as much as one per cent against the euro, to €1.1941, and 1.1 per cent against the dollar, to $1.3280, before beginning to edge up. Meanwhile, the [...]
Mark Carney prepares to cut rates and raises prospect of more quantitative easing June 30, 2016 The governor of the Bank of England has told markets to expect a cut in interest rates as he warned the economy was in for a period of prolonged uncertainty and significantly slower growth in the wake of the EU referendum. In his second intervention since the UK voted to walk away from the EU, [...]
South Africa posts record trade surplus after exports of precious metals and stones sky-rockets June 30, 2016 South Africa reported a whopping R18.7bn (£928m) trade surplus today, outdoing expectations. Exports rose 14 per cent to R104.7bn on a month-on-month basis, driven by a 49.1 per cent increase in precious metals and stones and a 10.4 per cent increase in mineral products exports. Imports were down 6.6 per cent to R86bn, the South African Revenue Service [...]
OBR scraps July fiscal sustainability report due to Brexit vote fallout June 30, 2016 The UK's fiscal watchdog scrapped its medium-term forecast which was due out next month, citing uncertainty from the UK's decision to leave the European Union. The OBR said Brexit uncertainty meant it wasn't currently worth making estimates using its previous prediction. This means the first official economic forecast post-vote will be the Bank of England's quarterly inflation report due out in August. Read more: [...]
What does the Brexit vote mean for the public finances? June 30, 2016 Economists have warned the government's debt pile is set to jump following the UK's decision to leave the European Union. With growth forecasts being slashed and many fearing the UK is on the brink of a recession, the chances of the UK eradicating its budget deficit by the end of the decade are look slimmer. [...]
Before the bell: What you need to know before the US market open June 30, 2016 The Fed's stress tests were failed by two European banks further buffeting stocks hit by the Brexit vote, while Wall Street lenders have announced share-buyback plans. Here's what you need to know before the US market open at 2:30pm London time. Futures are pointing down ahead of the open, with the S&P off by 0.16 per [...]