Putin isn’t dangerous because Russia is strong – but because it’s so weak January 30, 2017 “Some people without brains do an awful lot of talking.” – L Frank Baum, The Wizard of Oz As a child, I remember being fascinated by the populist allegory The Wizard of Oz. My favourite part of the story – sure to cause me to burst out laughing even when I knew what was coming [...]
Embrace simple taxes and openness to trade to make a long-term success of Brexit January 30, 2017 At her Lancaster House speech this month, Theresa May was good to her word. She set out her 12-point negotiating position for leaving the EU and it was explicit that Brexit does, in fact, mean Brexit. The lady is clearly not for turning. And if the Lancaster House speech was about withdrawing from the current [...]
How 1.5 per cent of UK businesses created 780,000 jobs last year January 30, 2017 Medium-sized British businesses created 780,000 jobs in 2016 and increased profits by 19 per cent, according to new figures released by accountants BDO in a report into the sector’s growth prospects. The increase was a striking improvement on annual profit growth between 2011 and 2015, which averaged less than one per cent a year while [...]
European industry fears being left behind without investment in innovation January 27, 2017 European industrialists have called for a big increase in efforts to boost innovation as they fear a rise in protectionism and trade restrictions damaging the EU’s economy. The rise in protectionism, most potently symbolised by the rise of Donald Trump as US President, has alarmed business leaders in the European Round Table of Industrialists. Kurt [...]
US consumers feel a Trump bump as confidence rises to 12-year high January 27, 2017 US consumers have greeted the arrival of Donald Trump as President with glee, as confidence soared in January to its highest level in 12 years, according to a closely watched survey. Optimism for the prospects of the world’s largest economy has risen by nine per cent year on year, according to the survey by the [...]
US economy grows slower than expected in fourth quarter of 2016 January 27, 2017 The US economy grew by less than expected in the last full quarter of the presidency of Barack Obama, as the country enters a new era of fiscal and monetary policy. Real GDP grew at an annual rate of 1.9 per cent in the fourth quarter of 2016, according to the US Bureau of Economic [...]
European and US visitor numbers to Britain surge after Brexit as spending jumps January 27, 2017 Visitor numbers to the UK from the EU and America have surged year on year, while a new analysis shows just under 900,000 British citizens live in Europe. US visitor numbers increased by 11 per cent in the three months to November 2016 compared to the same period in 2015, according to the Office for [...]
No fireworks: Bank of England and Federal Reserve set to hold interest rates next week January 27, 2017 With both the Bank of England and the Federal Reserve set to meet it’s a big week for monetary policy, but don’t expect fireworks, economists say. Since the collapse of Lehman Brothers sparked the financial crisis, the top 50 central banks have cut rates over 700 times, according to JP Morgan. While Brexit and the [...]
Donald Trump’s wall prompts investor stampede for infrastructure January 27, 2017 Donald Trump’s promises to build a massive wall with Mexico as well as to revive oil pipelines have prompted an investor rush to gain exposure to infrastructure assets. Inflows into funds focused on investments in the infrastructure sector surged in the last week, according to data provider EPFR. On assuming the US presidency, Trump signed [...]
Fabulous Brexit, Chinese implosion: The feasible scenarios markets are ignoring January 27, 2017 The exquisite unpredictability of markets was on full parade in 2016, and investors are still breathless. Very few believed populist anger would lead to a Brexit or a President Trump, or that a crashing oil market would be rescued by a deal underpinned by Saudi altruism towards Iran. Indeed, markets are replete with occurrences which [...]