No-deal Brexit could cause ‘full-blown’ recession in 2020 July 18, 2019 A no-deal Brexit could plunge Britain into a year-long recession and shrink the economy by two per cent next year, the UK’s public finances watchdog has warned. Britain may already be on the verge of a “full-blown” recession but crashing out of the European Union without a deal would damage growth further, the Office for [...]
MPs demand fresh Brexit analysis from Bank of England and Treasury July 18, 2019 The chair of an influential committee of MPs has called on the Bank of England and the Treasury to provide fresh analysis into the financial impact of different Brexit scenarios. Nicky Morgan, who heads up the Treasury Select Committee in Parliament, has asked Bank of England governor Mark Carney and Treasury permanent secretary Sir Tom [...]
‘Ray of hope’: Rising wages keep shoppers spending in June July 18, 2019 UK retail sales grew by one per cent in June compared to a month earlier, official figures have shown, reversing a fall in purchases in May. Read more: Real wages rise as UK inflation stays at two per cent However, in the three months to June British shoppers bought 0.7 per cent more goods, the [...]
Philip Hammond ‘may quit Downing Street’ before new PM takes power if Boris wins July 18, 2019 Philip Hammond may be set to jump before he is pushed out of office by Boris Johnson, it is reported. The chancellor of the Exchequer could order removal vans to 11 Downing Street as early as today, according to the Daily Mail, which reported that Hammond has told friends he is set to quit. Read [...]
Michel Barnier: UK will ‘face consequences’ of no-deal Brexit July 18, 2019 The EU’s chief Brexit negotiator has warned that the UK will have to “face the consequences” if it ends up leaving without a deal. Michel Barnier told the BBC that Theresa May’s deal, which was rejected three times by parliament, was the only way for Britain to exit the EU in “an orderly manner”. Read [...]
Tepid Eurozone inflation stays well below ECB target July 17, 2019 Eurozone inflation rose to 1.3 per cent in the year to the end of June, official figures showed today, but was still well off the European Central Bank’s (ECB) two per cent target. Read more: Eurozone retail sales see surprise fall in May The weak rise in prices will bolster market expectations that the ECB [...]
Will the Bank of England raise or cut interest rates after UK inflation data? July 17, 2019 UK inflation has grown at an annual rate of two per cent for the second month in a row, official statistics confirmed today. Read more: UK inflation stays at Bank of England two per cent target The consumer price index (CPI) figure is bang on the Bank of England’s target. It thinks two per cent [...]
Real wages rise as UK inflation stays at two per cent July 17, 2019 The prices in UK shops rose by two per cent in the 12 months to the end of June, official figures have revealed, with clothing and food costs rising most rapidly in the last year. Read more: UK unemployment stays at 45-year low as wages tick up The two per cent consumer price index (CPI) [...]
Relax, the UK (probably) isn’t heading for recession July 17, 2019 Immediate fears of a recession in the UK economy were eased last week with the latest Office for National Statistics (ONS) estimate of monthly GDP. The economy had shrunk in April, but growth resumed in May. This has not prevented widespread conjecture that a recession is imminent. The Resolution Foundation claimed last weekend that the [...]
Race begins for IMF top job as Christine Lagarde submits resignation July 16, 2019 Christine Lagarde will leave her post as managing director of the International Monetary Fund (IMF) on 12 September after she today formally submitted her resignation. Read more: IMF chief Christine Lagarde among surprise picks for top EU jobs Lagarde has been chosen to be the next head of the European Central Bank (ECB), and will [...]