IFS: Borrowing could surge to five-year high February 26, 2020 The UK’s borrowing could balloon to £63bn next year, a five-year high well above both the most recent forecast and this year’s borrowing figure, an influential think tank has said. The Institute for Fiscal Studies (IFS) also warned that the government would “undermine any credibility” in its spending rules if it ditches its pledge to [...]
February retail sales dampen hopes of post-election bounce February 25, 2020 Retail sales were broadly flat in February, according to the latest research, dampening hopes that the decisive General Election result has sparked a surge in consumer spending. The CBI’s monthly distributive trades survey showed that a net balance of one per cent of retailers reported a jump in sales volume in the year to February, [...]
Germany economy flatlines in fourth quarter on falling exports February 25, 2020 Declining exports stunted German economic activity in the fourth quarter, new data has revealed, showing the country’s economy was stagnating even before the coronavirus outbreak. Growth in Europe’s largest economy was confirmed at 0 per cent for the final three months of the year, according to the Federal Statistics Office. Exports fell 0.2 per cent [...]
East African states strive for single capital market as Mauritius diversifies February 25, 2020 | City Talk CFA Institute has examined Africa’s 10 largest capital markets in a major report compiled by Heidi Raubenheimer, CFA, our senior director for journal publications. Here we highlight key developments across East Africa and also take a look at island nation Mauritius. East Africa: Kenya leads way as tech platform links markets The East African Community (EAC) [...]
German business morale rises despite coronavirus outbreak February 24, 2020 Morale among Germany’s business leaders rose unexpectedly in February, a survey showed today, as the manufacturing sector improved despite global fears over the coronavirus outbreak. The Ifo Institute’s closely watched business climate index rose to 96.1 from 96 in January, beating predictions of a fall to 95.3. Ifo president Clemens Fuest said that along with [...]
No material impact from coronavirus on US-China trade deal for now, says Mnuchin February 24, 2020 US treasury secretary Steven Mnuchin has said he does not expect the current coronavirus outbreak to have a material impact on the Phase 1 US-China trade deal, although this could change as more data becomes available. The IMF warned yesterday that the COVID-19 outbreak will negatively impact the global economy even if it is rapidly [...]
Coronavirus and climate change impact Asian currencies February 21, 2020 | City Talk SGD: Comments from the Monetary Authority of Singapore (MAS) which suggested that the Singapore dollar may depreciate has put pressure on the currency. The news came alongside confirmation that the coronavirus had reached Singapore, a factor which MAS believes will have an impact on growth, stalling the recovery after a challenging 2019 which saw the [...]
US PMI: Factory output contracts for the first time in six years February 21, 2020 US economic output shrank for the first time since October 2013 today as the service sector reported its worst performance for four years. According to IHS Markit Purchasing Managers’ Index (PMI) data, the composite output index fell to 49.6 from 53.3 in January, reaching a 76-month-low. The drop was driven by services, which fell to [...]
PMI data picks up the pound February 21, 2020 | City Talk Manufacturing output grew at its fastest pace for 10 months, giving sterling a boost against other major currencies this morning. Recovering losses against EUR & USD, the latest flash Purchasing Manufacturing Index (PMI) data today announced that UK output rose 51.9, up from 50.0 in January. The question for many investors is whether the post-election [...]
Eurozone PMI: Manufacturing slump eases despite coronavirus fears February 21, 2020 The Eurozone economy picked up pace in February as manufacturing activity showed encouraging signs that its slump was easing. The sector’s resilience, despite fears the coronavirus could cause a further deterioration, helped push business activity to a six-month high. The manufacturing purchasing managers’ index (PMI) rose from 47.9 in January to 49.1 this month. Although [...]