China’s foreign currency reserves have just grown for the first time in six months April 7, 2016 China has recorded a surprise jump in its foreign currency reserves in March, potentially ending a slide which has seen its stash of overseas cash fall by 20 per cent since 2014. Official data – out today – confirmed that China amassed an extra $100bn last month, taking its total reserves to $3.21 trillion (£2.28bn), in [...]
Productivity even more puzzling: UK productivity disappoints – workers are doing less with more April 7, 2016 Britain’s productivity plunged 1.2 per cent in the final quarter of 2015, according to fresh data released by the Office for National Statistics (ONS) this morning, adding to concerns about the UK’s so-called “productivity puzzle”. Productivity is a measure of how much economic output is generated for each hour of work and is believed to [...]
US Federal Reserve looks abroad as it finds reasons to hold back on interest rate rises April 6, 2016 A weak global economy and volatility on the financial markets stopped the US Federal Reserve from raising interesting rates for only the second time since the financial crisis last month. Minutes from March’s meeting of the rate-setting Federal Open Market Committee (FOMC), released this evening, showed that even though the US jobs market continued to perform [...]
Oil price yo-yos back up as the latest US stockpiles show a surprise fall April 6, 2016 The oil price has bounced today after stockpiles in the US showed a shock decline, despite investors expecting a new record high. The oil price is up today by around five per cent, with international benchmark Brent crude trading at $39.77, while US oil hit $37.96. The US Energy Information Administration (EIA) reported that stocks of [...]
Startups founded during the recession could be the reason why Britain lags on productivity April 6, 2016 Britain’s startups could be the missing piece of the “productivity puzzle” which has had economists and policymakers scratching their heads in recent years, according to new research by the innovation body Nesta. Working with number crunchers at the National Institute of Economic and Social Research (NIESR), Nesta found that new firms – those founded since the recession [...]
IMF says lower taxes, more training and welfare cuts can kick-start global economic growth April 6, 2016 Countries around the world should slash taxes on employment and reform welfare to boost their economies, according to the International Monetary Fund (IMF). Ahead of its half-yearly and closely-watched world economic outlook, the IMF raised concerns about “the current environment of persistent weak economic activity in many advanced economies”, outlining its suggestions for increasing economic output and employment. Key [...]
Rent or buy? Renting is actually cheaper than buying in these 10 locations April 6, 2016 High and ever-rising rents would lead many to suspect that buying their own place would work out as a cheaper option when it comes to monthly costs – but, it turns out renting is cheaper than buying in a several areas across the country. In Cambridge, renting costs around £10,000 less than the monthly mortgage repayment on a [...]
EU Referendum: Government stockpiling foreign currency reserves to fight sterling volatility April 5, 2016 Britain’s foreign currency reserves reached a new record high last month, passing $100bn (£70.5bn) for the first time, as the UK looks to be building a buffer to defend the pound against the prospect of a currency crisis ahead of the EU referendum. Another $4.5bn in reserves was acquired in March, taking the total amount [...]
Europe goes shopping as prices keep dropping, but confidence may be short-lived April 5, 2016 The Eurozone was treated to a rare piece of good economic news this morning, as official figures showed households are buying 2.4 per cent more retail products than this time last year, though economists were pessimistic about how the long the feel-good factor would stick around. According to Eurostat, the EU’s official number crunchers, bumper [...]
Services sector struggles for momentum, as purchasing managers’ index points to GDP slowdown April 5, 2016 The fragility of Britain’s reliance on its mammoth services industry was laid bare this morning by the latest Markit/CIPS purchasing managers’ index (PMI), which showed growth in the sector will not be enough to translate into confidence about the wider economy. Services scored 53.7 on the bellwether index, where scores above 50 indicate expansion, rebounding from a [...]