German business sees a surprise fall in confidence as political risk looms January 25, 2017 Confidence in businesses in Germany has posted a surprise fall to start 2017, as worries over Europe’s medium-term outlook increased, according to a long-running survey. Sentiment fell from a three-year high in December to its lowest point since September, according to a survey of over 7,000 companies by Germany’s Ifo Institute. Analysts had expected a [...]
Optimism at two-year high ahead of Brexit for UK manufacturers as domestic demand drives morale up January 25, 2017 A boom in domestic demand has boosted optimism among British manufacturers to increase at its fastest pace for two years ahead of Brexit, according to a survey of UK businesses. More than a quarter of manufacturing firms are optimistic for prospects for the year ahead, according to the Confederation of British Industry (CBI), outweighing negative [...]
The NHS will never have enough cash: Our national religion needs a reformation January 25, 2017 We British like traditions. A well-established one which comes round every year is the “winter crisis” in the NHS. Health provision is a political hot potato not just for this government, or indeed for any particular UK government, but for governments across the developed world. One of the key assumptions made by economists about human behaviour [...]
Saudi Aramco eyes bankers for what could be the world’s biggest float January 24, 2017 Global banking giants are set to compete for an advisory role on oil goliath Saudi Aramco’s multi-billion-dollar float, which is expected to be the world’s biggest initial public offering. The Saudi state-owned firm, thought to be the world’s largest oil producer, has requested proposals from banks including Morgan Stanley and HSBC, sources told Reuters late last night. [...]
Trump bump: US manufacturing activity expands at fastest rate since 2014 January 24, 2017 The US manufacturing sector started the new year on a high as Donald Trump assumes the Presidency, according to a survey of business activity. Manufacturing activity in the world’s largest economy expanded at the fastest rate since September 2014, according to flash estimates from data provider IHS Markit. The manufacturing purchasing managers’ index (PMI) rose [...]
Turkish lira slumps further as surprise decision to keep interest rates on hold undermines credibility of central bank January 24, 2017 Turkey’s central bank shocked investors as it left its main interest rate unchanged in the face of a sliding currency. The decision raises concerns about political interference in monetary policy by the government ahead of UK Prime Minister Theresa May's visit to Turkey this weekend, following her first meeting with US President Donald Trump. The [...]
The three biggest post-Brexit risks to the UK digital economy January 24, 2017 The UK's digital industries are at risk after Brexit if access to markets, talent and the free flow of data across borders are not secured in government negotiations, a leading trade body has warned. The digital industries accounts for 16 per cent of domestic output, produces nearly a quarter of all exports and generates 10 per [...]
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, [...]