Brent crude oil price bounces on Opec rumours February 11, 2016 Having hovered perilously close to $30 per barrel today, Brent crude bounced, after rumours emerged that the Organisation of Petroleum Exporting Countries (Opec) was preparing to "co-operate" on a production cut. Brent crude was up 1.3 per cent, at $31.23 per barrel, in late trading in New York, after the Wall Street Journal suggested that [...]
Portuguese borrowing costs surge to highest since 2014 February 11, 2016 Portuguese government borrowing costs have shot up to their highest level since 2014. The interest rate on the government’s 10-year bonds rose above 4.4 per cent today before falling back to 4.1 per cent. It was 2.5 per cent at start of the year. The new left-wing government which took over last year has promised [...]
Global turmoil? Four things the Bank of England could still do if we were plunged back into a financial crisis February 11, 2016 UK stocks have hit a three-year low, the economy has lost steam, and concerns are growing that, should things go pear-shaped, interest rates are so low the Bank of England has run out of ammunition. Whatever your view on whether we're about to be plunged back into the misery of a full blown financial crisis, here's [...]
US Federal Reserve’s Janet Yellen: ‘We’re taking a look’ at negative interest rates February 11, 2016 The US Federal Reserve is looking into whether negative interest rates would be an applicable policy for the US. Federal Reserve chair Janet Yellen said in testimony to congress: "We had previously considered them and decided they would not work well to foster accommodation back in 2010." "In light of the experience of European countries and [...]
Markets in Financial Instruments Directive (MiFID II) date confirmed – but why are financial institutions doing more and achieving less? February 11, 2016 After waiting and wondering, financial institutions finally have a firm date of 3 January 2018 for Markets in Financial Instruments Directive – also known as MiFID II – compliance. Whether this extended deadline provides firms with sufficient time to get their houses in order is debatable, but one thing is certain, huge amounts of money have already been spent on regulation. [...]
The customer is always right: Sales staff frequently missing the mark on customer expectations, by not listening and not asking enough insightful questions February 11, 2016 Salespeople regularly fall short of customer expectations, failing to measure up to their requirements, such as listening to what they actually want, a survey released today has found. According to the survey conducted by Huthwaite International, 85 per cent of people believe that salespeople should listen carefully to them to make sure they getting what they want, but only [...]
UK government borrowing costs hit record low as markets start to price in stronger chance of interest rate cut February 11, 2016 UK government borrowing costs have fallen to record lows as investors ditch risky stocks and flock to the safety of the bond market. The interest on a 10-year UK government bond dropped to 1.275 per cent today. It was just shy of two per cent at the turn of the year and nearly a full [...]
Lowest arrears rate for more than a decade as homeowners reap rewards of low interest rates and record employment February 11, 2016 The number of homeowners behind on their mortgage payments has fallen to its lowest for over 10 years. Fewer than one in 1,000 mortgages ended in repossession last year, according to figures released this morning by the Council for Mortgage Lenders (CML). The annual arrears rate for 2015 was 0.92 per cent, meaning fewer than one [...]
Why bank share prices are falling: Liquidity levels are borderline economic recession – and the world is facing another funding crisis February 11, 2016 Global investors are rushing to ‘safe’ assets. Many government bond yields have turned negative and gold, so long out of fashion, is spurting higher. Financial markets are cyclical and typically suffer sell-offs every 8/9 years: 1966, 1974, 1981, 1990, 1998, 2007/08 and now 2015/16. Yet, there is a smell of panic across the trading floors [...]
Swedish interest rates: Riksbank cuts rates again in surprise move sending krona plunging February 11, 2016 One thing’s for sure: the Riksbank doesn’t do things by halves. The Swedish central bank just took its benchmark interest rate even further into negative territory than economists were expecting. The Riksbank announced this morning it would be cutting rates to minus 0.5 per cent, from the current minus 0.35 per cent. "Our repo rates [...]