Myth-Busting: Money printing must create inflation May 11, 2021 | City Talk London ranks ninth on the UBS Global Real Estate Bubble Index for residential properties. Like in many other countries, property prices in the United Kingdom reached an all-time high in 2020. A global pandemic with sudden mass unemployment should have forced UK citizens to sell their homes, but the furlough policies, stamp duty holidays, and record-low interest rates [...]
Collision of Covid-19 and Brexit fuels a £700bn blow to economic output May 11, 2021 The UK economy has been forecast to suffer an over £700bn blow to output due to the collision of Covid-19 and Brexit, the National Institute of Economic and Social Research warned today. The bruising figure was made worse by the government’s “poor Covid-19 response”, the think tank said, adding that it has left the UK [...]
Before the Bell: The Fed will not pull away the punch bowl just yet May 10, 2021 Friday’s historical non-farm payrolls miss has been a sigh of relief for global markets, because it means the Federal Reserve won’t pull away the punch bowl just yet. The excess liquidity is here to stay, the historically low funding costs as well. Therefore, “we will most probably see a strong investor appetite for both growth [...]
Growth narrative may shift as pre-pandemic challenges reappear May 10, 2021 Two major events took place in the world’s two largest economies recently that have the potential to directly impact us here in the UK. The first is the passage of President Biden’s $1.9trn stimulus bill in the US last month. The second is the recent meeting of the National People’s Congress in Beijing. Taken together, [...]
US job growth crashes below expectations amid labour shortages May 7, 2021 US job growth was far slower than expected in April as labour shortages left employers scrambling to meet booming demand as coronavirus restrictions ease. Non-farm payrolls increased by just 266,000 jobs last month, well below estimates of 1m, according to figures from the Labor Department. It also marks a significant slowdown from the 770,000 jobs [...]
Markets today: China sells, Britain builds and the US employ May 7, 2021 European markets saw another day of gains yesterday, though for most of the day it was a bit of a struggle, with the turnaround only happening in the last hour of trading, as US markets shrugged off their early day malaise to turn higher, with the Dow once again posting another record high. The likes [...]
The recovery is in full swing: UK set for best growth since Second World War May 6, 2021 The economy will grow this year at its fastest pace since the Second World War as Britain stages a vaccine-fuelled recovery. Gross domestic product will rebound by 7.25 per cent in 2021, up from its previous prediction of 5 per cent and the best year of growth since 1941, according to the Bank of England [...]
US jobless claims fall to 13-month lows as reopening continues apace May 6, 2021 The fewest Americans applied for unemployment benefits as have done so in 13 months last week, new data from the US Labor Department shows. Initial claims fell from 590,000 to 498,000 in the week ending 1 May, the figures show, below economists’ forecasts. The number was one of several pieces of economic data that suggested [...]
Bank of England leaves monetary policy unchanged but slows bond-buying May 6, 2021 The Bank of England’s Monetary Policy Committee has left its stimulus programme unchanged as it expects a faster economic recovery than previously anticipated. As expected the committee unanimously voted to keep interest rates at 0.1 per cent and by a majority to keep the size of its bond-buying programme unchanged at £895m. The central bank [...]
UK PMIs: Service sector grew at fastest rate since 2013 in April May 6, 2021 The UK service sector grew at the fastest rate since 2013 in April as the economic recovery from the Covid-19 pandemic continues apace. The UK Composite Purchasing Managers’ Index (PMI) for services rose to 61 in April, up from 56.3 in March. Any score above 50 indicates growth. It beat flash estimates of a reading [...]