A tale of two Eurozones: Greater Germany and Club Med are drifting ever further apart February 15, 2017 At the end of last week Federica Mogherini met leading members of the Trump administration. Mogherini, yet another Italian politician turned Euro-bureaucrat, is in fact the foreign policy chief of the European Union. She stood on her dignity, or rather the dignity of the European Commission, issuing a warning to America not to interfere with [...]
It’s time for diversity at the Bank of England February 15, 2017 The financial crash knocked some of the stuffing out of the economics profession, though you wouldn’t know it given the confidence with which economists still parade their forecasts. A few – especially those with a monetarist or Austrian inclination – publicly expressed concern about policy in 2005-2007, but nobody from the mainstream predicted a financial meltdown. [...]
Protectionism is raising risks to companies’ global supply chains February 14, 2017 Protectionism and macroeconomic uncertainty have increased the risks to the world’s supply chains to the highest level in 24 years, according to an index tracking world trade. The index grew to a record high as Western Europe saw risks to the world economy’s globalised structure increase markedly, according to economists at Dun & Bradstreet. Companies [...]
Federal Reserve’s Janet Yellen sets course for rate rises if economy continues to perform well February 14, 2017 The US dollar jumped in value as Federal Reserve chair Janet Yellen told Congress a delay in raising interest rates could be “unwise” if the US economy continues to perform well, despite uncertainty around the outlook. However, Yellen said it was “too early” to know what policies US President Donald Trump’s administration would follow or [...]
Beleaguered Greek economy shrinks at end of 2016 as government hires Rothschild to advise on debt load February 14, 2017 The Greek economy shrank in the last three months of 2016, heaping more misery on the beleaguered country as it attempts to avoid a government default. Greece’s GDP fell by 0.4 per cent in the final quarter, according to the Hellenic Statistical Authority, a steep fall from growth of 0.9 per cent in the three [...]
Inflation: How far will UK consumer prices rise this year? February 14, 2017 Inflation has already hit a 31-month high, but economists are almost universally predicted a steep rise in consumer prices over the coming year. The Bank of England (BoE) expects consumer prices to rise to 2.7 per cent by the end of this year, but other economists think that might be at the more conservative end [...]
Eurozone growth lower than expected as German inflation approaches European Central Bank target February 14, 2017 Growth in the Eurozone was revised down in the fourth quarter as more accurate data revealed a weaker than expected German economy as well as a surprise contraction in the struggling Greek economy. Growth in Europe's largest economy rose in the fourth quarter of 2016, confirming a solid rate of expansion for the year but [...]
Inflation rises closer to Bank of England’s target rate as factory gate prices soar February 14, 2017 Consumer prices growth accelerated at the fastest rate in 31 months in January, raising pressure on the Bank of England (BoE) to tighten monetary policy as inflation approaches its two per cent target, while a big jump in producer prices threatens to squeeze margins for manufacturers. The consumer price index (CPI) of inflation rose by [...]
The rise in insecure work is costing the Exchequer £4bn a year, warns the TUC February 14, 2017 The sharp rise in insecure work across the UK is costing the government – to the tune of nearly £4bn a year in lost tax income and benefit pay-outs. That's according to the Trades Union Congress (TUC), which says that total represents nearly a quarter of the social care budget spent in England. Its new [...]
Want a more equal society? Be careful what you wish for February 14, 2017 Consider this thought experiment. You have been transported back to 1912 and have the power to change the course of history. You foresee a century ravaged by the effects of two catastrophic World Wars, with a resulting 100m casualties. You also know the effects of violent communist revolution and rule, with a death toll almost [...]