Fortunes diverge between Europe and US as euro falls to six-week lows and global stocks hit record highs February 22, 2017 The euro fell to six-week lows against the US dollar on Wednesday morning as fears of political chaos stand in contrast to continued bullishness on global stock markets, which reached fresh record highs. The euro fell to a low of $1.0498 against the dollar today, its lowest since the beginning of January, sending the dollar index [...]
Blame restrictions on the supply of land for new homes for rising wealth inequality February 22, 2017 Official data released last week on house price increases in 2016, which among other things showed the Shetland Isles as the part of the UK which posted the biggest jump in prices last year (at 26 per cent), generated a lot of interest. Given that housing represents by far the most important component of wealth [...]
Our overly centralised tax system has exacerbated the business rates debacle February 22, 2017 Business rates may not be the most captivating subject for most City A.M. readers. But the impact of a delayed revaluation on our shops, pubs and cafes might well be. Changes affecting the £25bn a year tax that ultimately goes to pay for social care, schools, Tube trains and roads are due to come into [...]
UK boosts position as largest investor in India as the government looks to step up trade deals outside Europe February 22, 2017 The UK boosted its position as the largest foreign investor in India among the G20 group of the richest nations, according to a new report, as the government looks to boost trade ties with the largest Commonwealth nation. Investment increased by $1.87bn (£1.5bn) over the course of 2016, according to a report by the Confederation of [...]
Uncertainty named as top challenge for UK employers ahead of triggering of Article 50 February 22, 2017 Uncertainty around the economy and politics has been cited as the top concern by British businesses despite a tightening labour market, according to a new poll. Over a third of UK businesses cited uncertainty as the main challenge to trading, according to the Recruitment and Employment Confederation (REC), ahead of the government's planned triggering of [...]
Gresham House launches a platform for pension funds that want to make an impact February 21, 2017 Mammoth pension funds are to be able to invest into smaller, socially responsible projects through a new platform announced today. The initiative has been created by AIM-quoted investment house Gresham House and has attracted cornerstone interest from Berkshire's local government pension fund, alongside a 20 per cent shareholding the fund has agreed to take in Gresham House itself. Larger pension funds [...]
A smooth Brexit could lead to tighter monetary policy according to the Bank of England’s Mark Carney February 21, 2017 A smooth Brexit process would lead to a faster rate of interest rate increases, according to the Bank of England’s governor, Mark Carney If the process of the UK leaving the EU moves “relatively smoothly to an increasingly clear end point” it would “be consistent with a higher path of interest rates,” Carney said, in [...]
The UK government’s deficit reaches lowest year-to-date since financial crisis but misses expectations February 21, 2017 Government borrowing recorded the biggest January surplus since 2000 and its lowest year-to-date reading since the financial crisis ahead of chancellor Philip Hammond’s first Budget on 8 March, despite a lower-than-expected monthly surplus. With tax receipts in January traditionally far higher than every other month as self-assessment returns come in, the January surplus of £9.4bn [...]
The Eurozone economy heats up to pre-debt-crisis levels as German manufacturing drives growth February 21, 2017 The Eurozone economy has showed signs of heating up, with German manufacturing expanding at the fastest pace since 2011 before a sovereign debt crisis swept through the region, according to a survey closely followed by monetary policymakers. Across the Eurozone the expansion of industry reached an almost six-year high, according to the composite purchasing managers' index [...]
The case for an infrastructure spending splurge rests on shaky foundations February 21, 2017 As the chancellor prepares his Budget and US President Donald Trump shapes his economic plan, commentators are urging both to engage in significant new spending on transport infrastructure. The conventional case was articulated well by Times columnist Oliver Kamm last week. Only the government can undertake the investment and planning necessary for complex projects such [...]