Government borrowing less than predicted putting it on track to undershoot deficit expectations January 24, 2017 UK borrowing was less than expected in December, boosting the government as it aims to eradicate the deficit in spending while avoiding an economic hit from Brexit. Borrowing to fund the deficit fell to £6.9bn in December, according the Office for National Statistics, putting it on track to undershoot the latest forecasts by the Office [...]
Europe’s business hires at the fastest rate since financial crisis as activity measure shows healthy growth across region January 24, 2017 Employment in the Eurozone economy increased at its fastest rate since before the global financial crisis hit in 2008, as surveys of business activity showed healthy activity across the region to start the year. Germany’s powerhouse industry led the way, as activity in the manufacturing sector hit a three-year high. The German manufacturing purchasing managers’ [...]
Trump is wrong: Protectionism leads to misery, not prosperity January 24, 2017 Donald Trump tore up the broad consensus on international free trade with a miserable, protectionist inaugural speech on Friday. So explicit was his outlook that those of us who had become complacent about his economic impact – the “how bad can he be?” crowd – have had to sit up and reassess. In a pugnacious passage, [...]
Britain’s new industrial strategy must not drown out the voices of emerging sectors January 24, 2017 The government has published its long-awaited industrial strategy – its 10 point plan for building a robust economy in the face of economic change, increasing automation and the unknown impact of leaving the EU. Wrapped up in its 125 pages is a strong focus on innovation-led growth, including clarity on the £4.7bn of additional funding [...]
US President Donald Trump gets to work with executive order to scrap Trans-Pacific Partnership and border tax threat January 24, 2017 Donald Trump kicked off his first week as President by signing an executive order withdrawing the US from the Trans-Pacific Partnership trade deal, branding the move a “great thing for the American worker”. The departure from one of Obama’s signature policies comes after Trump pledged in his inauguration address to “put America first”. Though the deal [...]
China’s growth boom could be threatened by debt levels says Fitch Ratings January 23, 2017 China’s massive levels of debt will cause an economic slowdown over the next two years, according to an influential ratings agency. The pursuit of “policy settings that prioritise short-term growth targets” could leave the world’s second-largest economy vulnerable to a slowdown next year, according to Fitch. The agency predicts growth will slow to 6.4 per cent [...]
European consumers keep on ignoring politics as confidence improves for fifth month in a row January 23, 2017 Consumers in the Eurozone continue to ignore the looming political risks in the bloc, with confidence improving for the fifth month in a row. The European Commission’s measure of consumer confidence rose to a negative score of 4.9. The broader EU measure was slightly higher, at minus 4.3 points. While the confidence measure is negative, [...]
Here’s what UK tech thinks of Theresa May’s modern industrial strategy January 23, 2017 The UK's tech industry has tentatively welcomed promises by Theresa May to put the sector at the heart of Britain's modern industrial strategy, with funding promised for top artificial intelligence, robotics, 5G and smart energy technologies. “In today’s economy, the tech sector is driving innovation and boosting productivity across all industries. In tomorrow’s economy, every sector [...]
Brace for “hard rebalancing” of UK economy in 2017 January 23, 2017 The fall in the pound will result in a “significant readjustment” of the UK economy away from consumer spending and towards exports, regardless of the results of the Brexit negotiations. Economists at Ernest & Young says UK exports will increase by as much as 3.3 per cent this year, and 5.2 per cent in 2018, [...]
ECB president Mario Draghi is under investigation over allegations he played a part in an elite group of global bankers January 20, 2017 European Central Bank (ECB) president Mario Draghi is set to come under investigation by an EU body after a complaint over his membership of an elite group of bankers from around the world, including JP Morgan, UBS and Credit Suisse. The European Ombudsman, which follows up complaints by EU citizens over maladministration, will investigate whether [...]