BoE’s Chief Wonk: Inflation spike could undermine recovery December 23, 2020 The Bank of England’s Chief Economist Andy Haldane has said that a “laser focus” is needed on inflation amid unprecedented public debt and fiscal stimulus. Haldane fears that markets would only forgive a brief period in which inflation tops the Bank’s 2 per cent target, with any entrenchment seeing yields rise and increasing the cost [...]
Trump brands stimulus deal a disgrace as months of work hang in balance December 23, 2020 US President Donald Trump threw a sizable spanner into the works of a $900bn stimulus deal last night, branding it a disgrace and threatening to veto the whole accord. Amongst the outgoing President’s complaints were that the stimulus bill was part of a package to keep Government funded until Septemver, including arts institutions and the [...]
Brexit: Barnier says progress made but fisheries still holding up deal December 22, 2020 Michel Barnier has told EU Ambassadors that progress has been made towards a Brexit deal, according to multiple reports. However, fisheries remains the key stumbling block and as a result there is now doubt that a deal will be ready in time for the December 31 deadline. Barnier is reported to have said that his [...]
UK Q3 growth revised upwards to 16 per cent but recovery stalls in October December 22, 2020 The UK grew only 0.4 per cent in October as the reintroduction of restrictions across the country took their toll on the economic recovery. In the same release, the Office for National Statistics revised their estimate of GDP growth in Q3, however, to 16 per cent. Read more: UK borrowing hits third highest monthly level [...]
US finally passes $900bn stimulus deal as hopes for recovery increase December 22, 2020 Congress last night squeezed through approval of a $900bn stimulus deal intended to give the US economy a much-needed boost. The package has been the subject of tortuous negotiations over recent weeks but an agreement was struck over the weekend. Read more: Could 2021 be the FTSE’s year? The stimulus package will re-capitalise a small [...]
Andrew Bailey faces another tough year at Bank of England in 2021 December 22, 2020 Mark Carney must be thanking the gods he stepped down as Bank of England governor in early March. Since then, his successor Andrew Bailey has had to steer the historic institution through the worst economic downturn in 300 years, complete with a bout of market panic in the spring. Under Bailey’s leadership the Bank slashed [...]
Retailers feel Tier 4 pain as footfall drops 40 per cent December 21, 2020 Retail footfall plunged by 40 per cent in the areas of England put under Tier 4 restrictions such as London, laying bare the impact of the restrictions on shop-owners during the crucial Christmas period. Prime Minister Boris Johnson on Saturday announced London and parts of the south and south east of England would go into [...]
UK house prices end year on high with £62bn more deals than 2019 December 21, 2020 UK house prices are set to finish the year on a high note despite the worst downturn since the 1700s, with the residential property market racking up £62bn more in agreed sales in 2020 than last year, according to new data. Property website Zoopla said house prices rose at an annual rate of 3.9 per [...]
Business confidence surged on vaccines before new lockdowns December 21, 2020 The start of the UK’s coronavirus vaccination programme drove up business confidence to a nine-month high in December, a survey has shown. However, the Lloyds business barometer gave a picture of businesses’ attitudes before the government tightened the lockdown rules over Christmas, bringing new uncertainty to firms. Prime Minister Boris Johnson on Saturday announced London [...]
US lawmakers poised to vote on $900bn stimulus package December 20, 2020 US lawmakers could vote on a $900bn (£665bn) stimulus package as early as today after Republicans and Democrats reportedly reached a compromise on Federal Reserve lending programmes. If Congress fails to act, much of the support aimed at the unemployed so far will expire. Other stimulus programmes are due to come to an end before [...]