Warnings over global instability gather pace as George Soros compares climate to 2008 January 7, 2016 Warnings over global stability gathering are pace, with legendary fund manager George Soros comparing the climate to that of the financial crisis in 2008. Speaking in Sri Lanka, Soros warned China is struggling to move away from export-led growth towards a more sustainable, domestic consumption-led economic model. The billionaire investor said the People's Bank of China's [...]
Halifax house price index: UK house prices rose 9.5 per cent last year. Yawn January 7, 2016 Another day, another confirmation that homes in the UK are increasingly unaffordable. House prices have risen 9.5 per cent in the year to December, according to figures from Halifax, which showed the average house price is now a £208,286. Ouch. Still: the UK's house prices are nothing if not dependable. The figure meant annual price growth stuck between [...]
How low can yuan go? Trading on the CSI 300, Shenzhen Composite and Shanghai Composite suspended after People’s Bank of China’s devalues renminbi January 7, 2016 Trading on China's stock markets has been suspended for the second time this week, after China accelerated the depreciation of the renminbi, a move which rippled through regional currencies and domestic stock markets. The so-called circuit-breaker was triggered after just 870 seconds (that's just under 15 minutes) of trading, helping China's stock market clock the shortest trading [...]
Chancellor George Osborne warns on dangerous threats to UK economy January 7, 2016 Britain's financial wellbeing could come under threat from global economic shocks, chancellor George Osborne will say today. “Last year was the worst for global growth since the crash and this year opens with a dangerous cocktail of new threats,” he will tell business leaders in Cardiff. Slowdowns in Brazil, Russia and China pose a major [...]
Manufacturers expect tough year as export growth drops to 2009 levels January 7, 2016 Manufacturers are unlikely to contribute much to the UK’s economic growth this year, according to new survey figures released this morning. Export sales nearly stagnated in the final three months of last year, the data from the British Chambers of Commerce (BCC) revealed. The export sales balance – the difference between the percentage of factories reporting [...]
China meddling causes investor concern as markets manage to regain some ground January 6, 2016 Markets in China have recovered some of their lost ground as the government’s control measures kicked in, furthering concerns that increased Chinese government meddling is creating an artificial market. State-run Chinese media has reported that a ban on institutional investors selling more than five percent of shares would remain in place indefinitely. It’s thought the [...]
Brent and US crude oil prices: The black stuff falls further after US figures show gasoline inventory boost January 6, 2016 Brent crude oil hit a low of $34.13 per barrel at one point yesterday, after figures from the US showed a huge increase in gasoline and distillate inventories. It recovered slightly to trade at $34.38 last night. The closely-watched weekly figures, from the US Energy Information Administration, showed that while inventories of crude oil have [...]
ISM PMI: The US economy has lost some traction January 6, 2016 The US economy slowed in December, according to a survey of businesses published today. The Institute for Supply Management's purchasing managers' index dropped to a score of 55.3 for last month from 55.9 in November. Scores above 50 indicate growth, with last month's lower score indicator slower growth. The survey was for the non-manufacturing sectors, which [...]
London house prices: London has the highest construction costs in Europe January 6, 2016 London has the highest construction costs in Europe, and the second highest in the world, new research has shown. London came second only to New York in terms of construction costs in the annual Arcadis international construction costs index. And another financial centre, Hong Kong, took third place. It topped other European cities: Geneva (4th), Copenhagen [...]
ECB chief economist Peter Praet: If you print enough money, you will always get inflation January 6, 2016 The European Central Bank's chief economist has staunchly defended its asset purchase programme, arguing that it will eventually increase inflation in the Eurozone. "If you print enough money, you will always get inflation. Always," Peter Praet said in an interview with Belgian magazine Knack. However, he added: But if oil and commodities prices tumble, it is [...]