UK businesses return to growth in December after lockdowns December 16, 2020 The UK’s businesses clawed their way back to growth in December after the England-wide lockdown hit the economy in November, a new survey has shown, although conditions were better in manufacturing than the all-important services sector. An early reading of the IHS Markit purchasing managers’ index (PMI) – a closely watched economic gauge – rose [...]
Bank of England set to hold policy amid Brexit and lockdown uncertainty December 16, 2020 The Bank of England is set to leave interest rates on hold when it announces monetary policy tomorrow, according to analysts, after expanding its bond-buying programme sharply last month. Economists said there was little reason for the Bank to act. The latest lockdown measures have not been as damaging as feared, while the BoE asset-purchase [...]
Economics has a lesson for Remainers and lockdown-lovers who refuse to let facts change their minds December 16, 2020 Christmas is a time to be charitable. So let’s spare a thought for those who fought against the referendum result. Unlike the great unwashed, who simply didn’t understand the issues they were voting on, they had all been expensively educated at the right sort of schools and universities. From the time the vote took place [...]
Vaccine ‘gamechanger’ will see UK economy bounce back sharply, analysts say December 15, 2020 The coronavirus vaccine will help the UK economy recover more rapidly than most experts think, according to economists at consultancy Capital Economics (CE) who predicted Covid will barely affect growth in the long-run. The respected economics consultancy predicted the economy would grow by about 7.5 per cent in both 2021 and 2022, after shrinking by [...]
Artificial intelligence: people – not robots – are in the driving seat December 15, 2020 | City Talk Like it or not, artificial intelligence (AI) is already part of our daily lives. From smartphones to Alexa virtual assistants, AI and its applications are accepted norms today.While we appreciate that AI can automate repetitive workplace tasks or even drive a car, its implications are much further reaching. Luminaries including Elon Musk and Bill Gates [...]
S&P: No-deal Brexit could threaten UK credit rating December 14, 2020 The UK’s credit rating could come under pressure if there is a no-deal Brexit that badly dents the country’s economic recovery, ratings agency S&P Global has said. It comes after Prime Minister Boris Johnson and EU Commission president Ursula von der Leyen pledged to extend Brexit talks beyond Sunday. The pound rose sharply today amid [...]
Britain has ‘most to lose from Brexit’, says French finance minister December 14, 2020 The French finance minister Bruno Le Maire has said that he believes the UK has more to lose from Brexit than the EU. “The British people will be the biggest losers from Brexit … Brexit, to use an expression of the late John Le Carre is a political, economic and historical folly,” Le Maire told France info radio. Le [...]
Treasury urged to focus on job creation amid UK ‘unemployment crisis’ December 14, 2020 The government has been urged to take a more active approach to job creation and keep public spending high to avoid “sleepwalking into an unemployment crisis” next year. The House of Lords Economic Affairs Committee said the Treasury should move away from wage subsidies and instead fund jobs in places they are needed such as [...]
Green bonds: ESG, sustainable or impact investments? December 11, 2020 | City Talk In this article, we provide an updated estimate for the green bond premium (“greenium”) in the Euro (EUR) market. We validate the common hypothesis that green bonds tend to trade a tighter spread (lower yield) than comparable “brown” bonds, and we offer some conclusions on green bond investors. The first green bond was issued in [...]
BRC: Businesses face £3bn ‘tariff bombshell’ on no-deal December 11, 2020 The British Retail Consortium (BRC) has warned that supermarkets and their customers face a £3.1bn ‘tariff bombshell’ if the UK leaves the EU without a trade deal. The UK’s transition period will end in three weeks and with talks at an impasse, there is growing concern the UK will be left to trade on World [...]