Investors move to risk-off mode ahead of Donald Trump’s inauguration January 20, 2017 Investors around the world have moved into risk-off mode ahead of the inauguration of Donald Trump as US President, with money flowing towards safe-haven gold funds over the last week. Flows towards gold funds hit a 10-week high, while dividend equity funds have seen outflows for the past month, according to data provider EPFR. Indeed, [...]
China reports slowest year of economic growth since 1990 January 20, 2017 China today reported its slowest year of economic growth in more than 25 years. The nation’s economy grew by 6.7 per cent in 2016, down from 6.9 per cent in 2015, according to official data. The figure represents the nation's slowest reported growth since 1990. Read more: China's crude oil output is falling “Perhaps inevitably, [...]
What Trump’s presidential inauguration means for the US Dollar January 20, 2017 Thanks to the Federal Reserve's Janet Yellen confirming that US rates are going up, the Greenback was the best performing currency on Wednesday, netting half a cent against sterling. She was unremittingly upbeat about the US economy, saying it was "near maximum employment and inflation is moving toward our goal". That being the case, the [...]
How blockchain technology could revolutionise global trade January 20, 2017 Blockchain technology could revolutionise trade – making it cheaper, quicker and simpler for businesses to trade internationally. From “letters of credit” to “bills of lading”, merchandise trade today is heavily reliant on paper documents. In our digital, connected world, there is a growing need to modernise trade’s many paper-based processes. Digitisation would reduce bureaucracy, improve [...]
Brexit hit to operations expected by institutional investors but they will continue to hold UK assets, according to “Brexometer” January 19, 2017 Big institutional investors think Brexit will change their operating models but are determined to hold on to UK assets despite fears of a slowdown, according to a new survey. Of the institutional investors surveyed by State Street for its new “Brexometer” poll, 80 per cent expect Brexit to impact their operations, as the UK faces [...]
Hold: The ECB keeps interest rates and QE purchases steady as Mario Draghi defends loose policy from hawkish critics January 19, 2017 The European Central Bank (ECB) has kept interest rates constant and made no changes to its quantitative easing programme, despite growing pressure to remove its historically high rates of monetary stimulus. The ECB’s rate-setting governing council kept its three main interest rates at the same levels since March 2016, when they were cut further in [...]
What to watch when the European Central Bank reveals its latest monetary policy decision January 19, 2017 After Janet Yellen gave a surprisingly hawkish speech to San Francisco’s Commonwealth Club last night, today’s turn in the monetary policy spotlight belongs to Mario Draghi. The Governing Council of the European Central Bank (ECB) meets today at its Frankfurt headquarters to discuss its three interest rates (currently near zero) and its controversial asset purchase [...]
The Brexit I love versus the Brexit I fear: A British renaissance or a missed opportunity January 19, 2017 What will the UK economy look like outside the EU, 10 years from now? Nobody knows the precise answer to this question but we can generate likely potential scenarios. What follows are two scenarios, the Brexit I love and the Brexit I fear. The Brexit I love is where the UK is open to the [...]
President Trump should be positive for the UK economy – in the short term at least January 19, 2017 When the US electorate chose Donald Trump as their next President, they voted for a big break from the liberal consensus which Hillary Clinton epitomised. Globalisation had not served Trump supporters well, and they wanted something radically different. We are now beginning to get more of a taste of what this might be. Some of [...]
After wages grew faster than expected in the three months to November, is the UK economy overheating? January 19, 2017 Charles Dumas, chairman and chief economist at Lombard Street Research, says Yes. The 2016 British economy was at or above its potential, with no slack. Official estimates of a little slack ignore domestically generated inflation picking up fast. If you impose a 15 per cent devaluation on an economy already fully employed, you do not [...]