German and French economic growth forecasts cut June 3, 2016 France and Germany have had their growth forecasts trimmed, in another sign that the Eurozone's economic recovery could be at a low ebb. Germany's central bank, the Bundesbank, chopped its gross domestic product forecast by 0.1 percentage points to 1.7 per cent for this year, and by 0.3 percentage points to 1.4 per cent in 2017. Read more: Inflation [...]
It’s a hat trick: UK growth to dip in the second quarter as service sector activity disappoints again in May June 3, 2016 Activity in the UK's most dominant sector rose slightly in May – but remained disappointing, pushing down expectations for GDP growth, data published today showed. Markit said the purchasing managers' index rose to 53.5 in May, from 52.3 in April. Anything above 50 indicates an expansion. But April's figure was a 38-month low – and May's [...]
Dumbed down Brexit row patronises voters June 3, 2016 Like clockwork, yesterday brought another slew of extreme projections about the impact of Brexit. It would “destroy” young people’s hopes of getting on the housing ladder, says Remain, apparently forgetting George Osborne’s warning last month that house prices could fall dramatically if the UK quits the EU (surely a boon for first-time buyers). Leave has [...]
Brexonomics: The five most insidious anti-EU myths debunked June 3, 2016 Eurosceptics peddle a raft of myths about the economic costs of EU membership. These have little, if any, empirical basis, but Brexiteers cling to them doggedly however many times they are refuted by proper academic research. Let’s take a look at the five most insidious ones: One: we keep being told that quitting the EU [...]
Tax freedom day slips into June as annual tax bill grows June 3, 2016 Today marks “tax freedom day”, the day of the year when the average UK worker stops paying tax and starts earning for themselves. The date, calculated by the Adam Smith Institute (ASI), falls four days later than in 2015 and has crept into the month of June for the first time in 15 years. With tax [...]
A vote to leave the EU could send the FTSE 100 south by 10 per cent over 12 months, bankers at UBS have warned June 2, 2016 Quitting the EU could knock the FTSE 100 back by 10 per cent over the next 12 months, to levels last recorded in February this year, UBS Wealth Management has warned. The pound would also take a hit, dropping to $1.25 and €1.20. In February the FTSE fell as low as 5536.97, 10 per cent off its current 6,185.79. The fall would [...]
Mario Draghi wants the UK to stay in the European Union as he unveils date for big bazooka June 2, 2016 Mario Draghi has explicitly called on UK voters to reject Brexit and choose to stay in the EU in the 23 June referendum. The president of the European Central Bank (ECB), speaking in Vienna this afternoon, did not hedge his bets, saying point blank: "The UK should remain in the EU. "The EU will benefit [...]
Before the bell: What you need to know before the US market open June 2, 2016 The European Central Bank (ECB) and the Organization of the Petroleum Exporting Countries (Opec) are both in Vienna today to decide on their respective policies and could add an extra kick of volatility to global markets. Here's what you need to know before the market open at 14:30 London time. US futures are struggling ahead of the opening bell. [...]
ECB will start buying corporate bonds as part of €80bn a month package next week June 2, 2016 The European Central Bank (ECB) will start buying corporate bonds as part of its quantitative easing package next week, it was confirmed today, as the Bank kept monetary policy on hold. The central bank, headed by president Mario Draghi, left its headline interest rates unmoved, with its deposit facility at minus 0.4 per cent and [...]
Construction PMI hits new low with building on hold until after EU vote June 2, 2016 Another PMI. Another disappointing score. Another sign that the UK economy is slowing down. This morning it was the turn of the construction industry to post the latest weak score on the purchasing managers' index (PMI), as the industry experienced the first fall in new orders in three years and edged dangerously close to slowdown territory. [...]