Why it’s too risky for Mark Carney to move interest rates for Brexit July 31, 2019 The Bank of England risks upsetting the economy if it changes interest rates before there is more clarity about Brexit, some of the City’s top economists have warned. Ahead of the Bank’s key meeting tomorrow, City A.M.’s shadow monetary policy committee (MPC) has said worries over slowing economic growth are outweighed by growing concerns that [...]
Stock markets edge up after US and China call trade talks ‘constructive’ July 31, 2019 Both Washington and Beijing have described a round of trade talks as “constructive”, pushing global stock markets tentatively higher. Read more: Stock markets slide as Donald Trump lashes out at China before key meeting The White House said China had confirmed a commitment to buy agricultural products following the talks, which took place in Shanghai [...]
Fed interest rate cut: Will Donald Trump get what he wants? July 31, 2019 The US Federal Reserve is set to cut interest rates for the first time in 10 years this evening, with the raging trade war with China and signs of slowing momentum darkening policymakers’ moods. Yet US economic growth is stronger than its peers and unemployment is at record lows, meaning the Fed will likely plump [...]
Irish central bank: No-deal Brexit would see growth plummet July 31, 2019 The Central Bank of Ireland has warned that a no-deal Brexit could shatter the country’s economic growth and cost its economy 34,000 jobs. Read more: Boris Johnson visits Northern Ireland for talks to resolve power-sharing agreement In its quarterly bulletin the Bank said growth in a no-deal scenario would be just 0.7 per cent in [...]
Eurozone growth and inflation slow with ECB poised to act July 31, 2019 Both price inflation and economic growth in the Eurozone were shown to have slowed in figures released today, boosting the chances the European Central Bank (ECB) will deliver fresh stimulus to kickstart the region’s struggling economy. Read more: ECB prepares stimulus to kickstart stalling Eurozone economy Prices in the Eurozone grew at an annual rate [...]
UK manufacturers gloomy but consumers more upbeat July 31, 2019 Optimism among UK manufacturers has fallen rapidly but British consumers have become more positive, two surveys showed today, in the latest sign of a big divide in the economy. Read more: UK mortgage approvals rise but consumer lending slows Business optimism among small and medium-sized (SME) UK manufacturers fell at its fastest pace in three [...]
Stock markets slide as Donald Trump lashes out at China before key meeting July 30, 2019 US President Donald Trump has fired a broadside at China ahead of the two sides’ trade negotiations, criticising its economy and saying the US has “all the cards”. Read more: ‘Faulty thought process’: Trump lashes out at Fed – again The attack has sent global stock markets sliding as the tensions between the world’s two [...]
Could this be the biggest monetary policy meeting in years? July 30, 2019 | City Talk The Federal Open Market Committee (FOMC) begin a two-day policy meeting today, the results of which are the most hotly anticipated in a long time. The market consensus is they’ll cut rates, but how likely is that? Stocks are currently at record higher, based on a certainty that short-term interest rates will be cut for [...]
Eurozone business confidence at six-year low as malaise continues July 30, 2019 Business confidence in the Eurozone economy reached an almost six-year low in July, with industrial sentiment falling significantly, a European Union survey showed today. Read more: ECB prepares stimulus to kickstart Eurozone economy Yet consumers became more positive, continuing the trend of domestic demand propping up euro area economies. The business climate indicator by the [...]
Sterling plunges below $1.22 as no-deal Brexit fears batter currency July 30, 2019 Sterling fell further overnight to its lowest level since March 2017 as worries over a no-deal Brexit under Boris Johnson’s government deepened. The pound plunged below $1.22 to hit $1.2146 this morning, a drop of almost 0.6 per cent against the dollar as analysts warned GBP is coming close to “uncharted waters”. Read more: Sterling [...]