Two US Fed chiefs quit as controversy over stock trades ramps up September 28, 2021 Two of the US central bank’s regional chiefs have stepped down as the fallout from controversial stock trades they made accelerates. Dallas Federal Reserve President Robert Kaplan became the second regional central bank leader to resign on Monday, after Boston Fed President Eric Rosengren took an early retirement. Controversy has swirled over both men due [...]
‘Alpha-Flation’: A Private Market Syndrome September 28, 2021 | City Talk In private equity (PE), there are more ways to calculate the alpha of a portfolio or fund than any other asset class. And in no sector other than private markets does investing in the average fund seem to go so poorly. Should it be this way? Is the average private market fund a bad fund [...]
This A.M.: Tide is turning at the Bank of England while markets await Powell remarks September 28, 2021 Having started the day in positive fashion yesterday, European markets saw the majority of the early gains slowly disappear, and though most did finish higher, it was a somewhat half-hearted affair. The result of the German election went entirely as expected, with little prospect of a new government this side of Christmas. US markets were [...]
Andrew Bailey: Interest rate rise needed to slow inflation but economy not strong enough September 28, 2021 Andrew Bailey said in a speech last night to the Society of Professional Economists that rate of recovery from the pandemic had slowed over recent months, adding: “And that slowing is continuing.” The Bank of England governor jokingly asked “when is the plague of locusts due” as he warned the economy faces “hard yards” ahead. [...]
End of furlough: ‘Time for the UK economy to put its big girl pants on’ September 27, 2021 This week, the government’s £70bn furlough support scheme comes to an end. The end of the Job Retention Scheme, or furlough, will force organisations to make decisions regarding the future of furloughed employees. City A.M. sought the views of a number of small business owners about whether now is the correct time to remove the [...]
Wave of redundancies looming: 70 per cent of UK employers expect job cuts as furlough scheme ends September 27, 2021 Nearly 7 in 10 employers expect to make redundancies within the next year, the majority of which will take place within the coming months, according to new research shared with City A.M. this morning. According to the study from Renovo, 69 per cent of all UK employers anticipate job losses, with 46 per cent of organisations [...]
Brits’ energy bills to swell more than £300 with poorest hit hardest September 27, 2021 Brits’ household bills are set to swell over the next year, with the poorest households being hit hardest by the energy crisis, according to new research. Energy bills will rise by more than £300 over the next year, highlighting the scale of the impact the crisis will have on Brits’ finances, shows research by the [...]
This A.M.: Evergrande concerns take a back seat while German election ends in gridlock September 27, 2021 Despite hitting two-month lows last week, markets in Europe eventually managed to finish higher, on the week, reversing a run of three successive weekly losses. Concerns about contagion effects from Evergrande haven’t gone away, but they appear to have taken a back seat to worries about supply chain blockages, surging energy prices and rising inflationary [...]
Furlough worth £70bn but unemployment fears mount as scheme ends on Thursday September 27, 2021 The furlough scheme cost the government £70bn and has been successful at preventing unemployment from skyrocketing, but concerns are sharpening about the jobs market’s ability to stand on its own two feet as the scheme ends this week. The initiative cost roughly the equivalent of 18 months’ of funding for UK schools, according to research [...]
‘Triple-whammy’ of inflation, energy bills and tax rises to eat into household budgets September 26, 2021 Incoming budget pressures over the next six months could squeeze the budgets of many Brits. In fact, a “triple-whammy” may leave low income families more than £1,000 worse off annually, according to a think tank. Inflation, rising energy bills and the looming health and social care tax could leave households worse off even after increases [...]