Trump’s economic adviser targets tax reforms ahead of major speech February 26, 2017 US President Donald Trump’s first Budget will focus on tax reforms instead of cutting back popular entitlement programmes, according to his main economic adviser. In an interview with US broadcaster Fox News, Treasury secretary Steven Mnuchin said: “We’re going to start with tax reform. We’re focused on regulatory relief, and we’re focused on a whole [...]
German deputy finance minister insists Greece will not receive debt haircut February 26, 2017 Germany’s deputy finance minister has reaffirmed the country’s hard line stance on refusing a debt haircut for Greece, raising the spectre of a further bailout for the embattled country. Jens Spahn said creditors would not countenance any reduction in the amount Greece owes or the timetable of repayments, in an interview with German radio. He [...]
Economists expect expansion to continue in the UK manufacturing and services sectors February 26, 2017 Closely watched surveys of economic activity are expected to show the UK economy continued to expand in February, despite rising input prices. The manufacturing purchasing managers’ index (PMI), reported on Wednesday, is predicted to show a continued expansion in the sector. The crucial measure of activity for UK manufacturers eased slightly from its fastest pace [...]
French elections promise a chaotic two months for investors as money tracks politics February 24, 2017 Fears of French electoral chaos have continued to drive sentiment in Europe in the past week, with volatile movements as investors follow the twists and turns of a tumultuous campaign. Redemptions from French equity funds reached their highest point since before Donald Trump was elected as US President in November during the week to 22 [...]
Economists want an industrial strategy from the government – but will it solve the productivity puzzle? February 24, 2017 An updated industrial strategy for the UK is long overdue, a poll of prominent economists says, with the process of leaving the EU set to begin in earnest within a month. Two-thirds of the economists’ surveyed, including some of the leading academic economists in Britain, agree that the UK needs a new industrial strategy, according [...]
German central bank chief renews efforts to woo British banks – and questions the “sanity” of Brexit negotiations February 24, 2017 “Sanity” will not be the main principle of negotiations over Brexit, according to an influential central banker, as he renewed efforts to woo British-based banks to move to Europe. Andreas Dombret, an executive board member at the German Bundesbank, said political considerations will override economic concerns in a speech delivered in London at the consultancy [...]
What are the biggest obstacles to global economic growth? February 24, 2017 | City Talk Global economic growth is lagging. The question is why. For insight into this, we asked readers of CFA Institute NewsBrief what they believe is the single biggest obstacle to global economic growth. I believe the biggest obstacle to global economic growth is . . . * Results do not add up to 100% due to [...]
Be under no illusions: The National Living Wage will cost jobs February 24, 2017 Imagine that you didn’t know how cold weather and turning on the heat affected the temperature of a room. You’d watch the boiler burn more or less gas, and you’d watch the weather get colder and hotter, but if the thermostat and central heating were working properly there’d be no change in the temperature of [...]
Europe must reinvent itself or markets will tear it apart February 24, 2017 As I sit on an over-crowded train at rush hour for the fourth time this week after a 12 hour shift (I hope my American co-anchor who doesn’t believe in European holidays is reading this), I look around and wonder how many people in the carriage still believe in Europe. On 23 June 2016, 59.9 [...]
Economists react: Immigration from eastern Europe falls as net migration dips below 300,000 February 23, 2017 Immigration to the UK from countries in central and eastern Europe fell significantly in the year to September, including the period after the EU referendum, while net migration dipped below 300,000, new figures show. Emigration by nationals from the eight nations which joined the EU in 2004 tripled, according to the Office for National Statistics [...]