As China’s central bank hauls in several bitcoin exchanges, could governments crush the cryptocurrency? February 8, 2017 Harriet Green, deputy business features editor at City AM, says Yes: If governments like China’s perceive bitcoin to be a threat, they will seek to undermine it. While they couldn’t destroy existing bitcoins, they could destroy demand. Any cryptocurrency is at risk of being made illegal by any government. Granted, users can move underground, but [...]
The UK economy is gaining momentum despite Brexit fears, says the OECD February 8, 2017 UK economic growth is gaining momentum despite concerns over Britain's future EU trade deal, according to the Organisation for Economic Co-operation and Development (OECD). The composite leading indicator rose to 99.5, according to the group of richer nations, continuing a clear upward trend from July 2016, the month after the UK's referendum on EU membership. The [...]
UK investment levels expected to stay low says Bank of England February 8, 2017 The Bank of England says it expects investment levels to stay weak in the UK, as it finds four in five publicly owned firms saying pressure to create short-term returns has dented investment levels over the past five years. Sir Jon Cunliffe, a deputy governor and member of the rate-setting Monetary Policy Committee, said in a [...]
The euro dips against the dollar and the pound as investors refocus on Marine Le Pen and Greece February 8, 2017 The euro fell against the pound and the dollar in morning trading as political fears come increasingly into focus. The euro fell as low as $1.0641 against the US dollar, its lowest point since the end of January. Meanwhile the pound rose against the euro to highs of €1.1751. Recent turmoil in the right wing [...]
Brexit has humiliated Britain’s failed economic soothsayers February 8, 2017 The Trojan prophetess, Cassandra, was given powers of foresight by Apollo, the Greek god of culture, in a bid to seduce her. She refused him and, as one version of the legend goes, he spat into her mouth to inflict a curse that no one would ever believe what she said. She prophesied doom and [...]
Projections that the Chinese economy will overtake America’s any time soon are fanciful February 8, 2017 Possibly the single most important of the tensions stoked up by President Trump is the rivalry between the United States and China. Economic strength will be the ultimate determinant of this struggle for the position of Top Nation. Comparisons of the size of economies, particularly ones at very different levels of income per head, are fraught [...]
London wage growth reaches 10-month high as recruiters report staff shortage concerns February 8, 2017 Wages in London grew at the fastest since March last year during January, as UK-wide demand for staff reached a 17-month high, a new survey shows. Almost a fifth of the London recruitment firms surveyed said average salaries were rising, compared to only 4.8 per cent who reported lower salaries, according to the figures from [...]
The FTSE 250 has closed at a record high after an MPC member hinted at an impending rate rise February 7, 2017 The FTSE 250 closed at a record high and the pound surged by more than a cent in afternoon trading, after a member of the Bank of England's monetary policy committee (MPC) hinted at an impending interest rate rise. The FTSE 250 rose to 18,559.7 points, one per cent higher, while the pound was sent [...]
Tax set to rise to highest share of UK income in over 30 years as austerity continues to bite according to Institute for Fiscal Studies February 7, 2017 The amount of tax we pay will rise to the highest proportion of the UK’s national income in over 30 years, according to an analysis by an influential group of economists. The government plans to raise taxes by £17bn over the course of this Parliament relative to 2015-16, according to the Institute for Fiscal Studies [...]
Inflation is striking back – and it will have implications for our politics February 7, 2017 Over the last two years, thanks to a low oil price, many economies have been living under a low-inflation illusion. 2017 looks set to be the year inflation strikes back. Rumbles of protectionism, uncertainty over Brexit, and Donald Trump’s expansionary fiscal policy all point to growing inflationary pressures further down the line. But immediate factors [...]