Here’s how UK businesses can protect themselves against a strengthening US dollar February 5, 2015 The US dollar's strength is surging against the pound and the euro – a trend that could cause problems for some UK businesses. As international confidence in the US economy intensifies, many investors have turned to the dollar as a much safer bet than its Asian or European counterparts, with China's growth slowing and [...]
Bank of England holds interest rates at record low of 0.5 per cent and keeps £375bn quantitative easing programme in February February 5, 2015 There are no surprises from the Bank of England, again. The central bank held its benchmark interest rate a record low of 0.5 per cent for the 71st month in a row. It also kept its quantitative easing programme steady at £375bn at the monetary policy committee's (MPC) February meeting. While the UK economy has [...]
Greek fallout hits Wall St in final minutes – New York Report February 4, 2015 Eurozone worries, caused by a stand-off between Greece and one of its creditors in the dying minutes of trade led the S&P 500 and the Nasdaq lower yesterday. The benchmark index added to losses late in the session after the European Central Bank (ECB) abruptly cancelled its acceptance of Greek bonds in return for funding. [...]
Bank of England fears a public backlash on mortgage controls February 3, 2015 The Bank of England must educate the public on its new powers over mortgage lending or risk harm to its reputation, top official Donald Kohn told MPs yesterday. Officials can limit loan to income ratios and debt to income ratios if they fear the housing market is becoming a risk to financial stability. But that [...]
Greece-Eurozone standoff presents “greatest risk to economy” George Osborne warns as Yanis Varoufakis visits London February 2, 2015 The standoff between Greece and the Eurozone presents the greatest risk to the global economy, chancellor George Osborne has said. Osborne, who met Greek finance minister Yanis Varoufakis in London today, said both sides needed to consider how they worked in future, or risk derailing growth, both globally and specifically within the UK. Varoufakis [...]
UK economy starts 2015 in good health as rate setters meet – London Report February 1, 2015 CONSTRUCTION, manufacturing and services figures for January, due out this week, are expected to show a healthy economic start for the UK in 2015. Analysts expect all the numbers, based on purchasing managers’ surveys, to be up on December’s. The Bank of England is due to meet this week to set interest rates, with no [...]
Rouble plummets against the dollar as Russian central bank makes shock cut to interest rates January 30, 2015 Russia's central bank has made a shock two percentage point cut to its benchmark rates of, lowering it to 15 per cent, which caused the rouble to plummet against the dollar, The currency slumped 1.2 per cent, sending it past the 70 per dollar mark. It's the first time it has slipped past that since December's [...]
Deflation has arrived in Germany: Inflation rate falls to -0.5 per cent in January January 29, 2015 Germany has slipped into deflation for the first time since the global financial crisis, supporting the European Central bank's recent decision to unleash its biggest "bazooka" on the ailing Eurozone. Consumer prices fell -0.5 per cent on an annual basis in January, according to flash estimates from Germany's statistics office. This meant they had fallen [...]
Russia to launch £22bn economy rescue package January 28, 2015 RUSSIA is to commit 2.3 trillion roubles (£22bn) to a plan to support its sanction-hit economy. It comes just days after its debt was downgraded to a “junk” rating by Standard and Poor’s ratings agency. The government also plans to set up a bad bank to take on troublesome loans from the banking sector. The [...]
Bank of England chief economist Andrew Haldane: There’s “no rush” to raise interest rates January 28, 2015 The Bank of England is in "no rush" to raise interest rates, and eventual increases will be by small increments, according to the central bank's chief economist Andy Haldane. "We are in no rush to raise rates, the recovery is taking hold nicely," Haldane told the Daily Post. "The last thing we want to do is [...]