US service sector contracts for first time in over two years – Markit PMI February 24, 2016 The US service sector contracted this month, according to survey figures released today. Markit's flash services purchasing managers' index (PMI) – compiled from a survey of businesses – dropped to a score of 49.8. Because the score is below 50 it implies the service sector contracted this month. It is the PMI's lowest score for 28 months. [...]
Retailers scaling back investment plans as sales expectations hit lowest since 2013 – CBI February 24, 2016 Retailers are scaling back investment plans after weak sales growth as expectations of sales weaken. The sales balance from the Confederation of British Industry's (CBI) distributive trades survey published this morning dropped to 10 points in February from 16 in January. Expectations of sales for the next month are at their lowest since May 2013. Investment intentions for [...]
Brexit brouhaha: Sterling hits new seven-year low against the dollar as EU referendum uncertainty continues to bite February 24, 2016 Thinking of going to the US this summer? Think again. The pound fell as much as 0.9 per cent against the dollar this morning, dropping to a new low of $1.3897 – the first time it has gone below $1.39 since February 2009. It also slid against the Euro, falling 0.58 per cent to €1.2651 – its lowest since November. The [...]
House prices to climb further as mortgage lending hits highest level since 2008 in January February 24, 2016 Mortgage lending spiked in January, raising concerns that UK house prices could rise even faster. Borrowing topped £13.6bn, 38 per cent higher than the same month last year and the highest since mid-2008, figures released this morning by the British Bankers' Association (BBA) show. The number of mortgage approvals was up 38 per cent on the year. [...]
UK companies need to be more productive to support National Living Wage but businesses don’t have a clue how to achieve that, finds new research February 24, 2016 Businesses are painfully aware of the need to pick up productivity to support the National Living Wage (NLW), but it turns out they have no idea where to start, according to research released today. The study, carried out by the Resolution Foundation and the Chartered Institute for Personnel and Development (CIPD), continues on from an [...]
Asian markets drop on weak Singapore growth data and lower oil prices February 24, 2016 Stocks in Asia tumbled overnight, as weak growth data from Singapore combined with lower oil prices to discourage investors. Data released by Singapore's Ministry of Trade overnight showed the city state's economy grew two per cent in 2015, its weakest growth since 2009. The data showed lower oil prices had dented growth alongside a slowdown [...]
Financial Conduct Authority does not know if it is protecting consumers from mis-selling in the financial services sector, says National Audit Office report February 24, 2016 The Financial Conduct Authority (FCA) is unable show that its actions are effective in reducing mis-selling to consumers, according to a report by the National Audit Office (NAO). The report, which was released today, discovered that the information the watchdog holds is not suitable for showing a link between its actions and complaints. For example, from [...]
EU referendum: London firms say the Single Market is the capital’s biggest economic asset – Confederation of British Industry (CBI) and CBRE Group survey February 24, 2016 Nearly all of London's businesses say that access to the European Union’s Single Market is the capital's "single greatest strength", according to a new survey out today. The Confederation of British Industry (CBI) and CBRE polled 200 of the capital's business leaders, finding that three-quarters of businesses have customers – and almost two-thirds of firms have suppliers – in [...]
What is helicopter money and could it save the global economy from another recession? February 24, 2016 Inflation is below target in most of the world's major developed economies. With interest rates at record lows and economists still split on the effects of quantitative easing, helicopter money has been touted as a possible weapon in central banks' arsenals. The idea The 18th century philosopher David Hume asked what would happen if some good fairy went around [...]
One dead and five construction workers in hospital while three remaing missing following incident at Didcot Power Station during demolition in Oxfordshire February 23, 2016 Emergency services are currently attending an incident at Didcot Power Station in Oxfordshire, which has left one dead while five construction workers are in hospital, and three are missing. Oxfordshire Fire & Rescue Service area manager Mat Carlile, who is on the scene, said: “I can confirm search operations are in progress and that there has been one fatality, [...]