Editor’s 2016 review: It’s been a year of momentous political change, but there’s every reason to look to the future December 22, 2016 Attempting to reflect such an extraordinary year with just a handful of our own front pages was always going to be difficult, but I thought we’d give it a go. The front page of City A.M. is (to borrow a phrase from our marketing department) the front door of our brand. The choice of splash, [...]
Does ultra-loose monetary policy work? The Treasury Committee wants to find out December 22, 2016 The Bank of England’s (BoE) post-financial crisis loose monetary policy may have had “unintended consequences”, according to the head of the Treasury Select Committee (TSC). TSC chair and Conservative MP Andrew Tyrie is set to launch a new inquiry into post-2008 central bank policy, which will investigate how effective low interest rates and accommodative instruments such [...]
Resilient British consumers grow more confident about personal finances, but see storm clouds ahead for the UK economy December 22, 2016 British consumers have ended the year on a resilient note, with confidence rising despite gloomy forecasts for the economy, according to a long-running survey. Consumer confidence increased in December by one point, driven higher by a positive attitude towards making major purchases such as furniture or white goods, says the index compiled by market research [...]
Eurozone consumer confidence reaches 20-month high December 21, 2016 Europe’s consumers appear to be slowly moving out of a long-term slump as confidence reached a 20-month high. Confidence in the Eurozone increased by 1.1 points to reach minus 5.1 for December, according to flash estimates from the European Commission. A measure below zero indicates net negative sentiment, but the score is well above the [...]
Long-term inflation expectations reach a two-year high of three per cent as Brits start to feel prices rise December 21, 2016 Inflation expectations have jumped to a two-year high as Brits predict it will reach three per cent in five to 10 years, according to a widely followed survey. Long-term expectations this month are up from 2.8 per cent in November, according to the poll by YouGov for Citi. This is the fifth month of increases [...]
UK government deficit rises more than expected and public sector borrowing continues to grow December 21, 2016 The UK government’s debt and budget deficit both rose in November, as borrowing came in higher than expected. The deficit rose to £12.6bn, with borrowing to fund everyday government spending accounting for £9.9bn, according to data from the Office for National Statistics. The government now owes the private sector almost £1.66 trillion, an increase of [...]
Expecting RBS profits is living in a fool’s paradise December 21, 2016 In just 10 days from now you will likely find yourself celebrating the end of 2016, and the start of a new year. If your headache the following morning isn’t bad enough, consider this – a decade earlier, on 1 January 2007, a share in the Royal Bank of Scotland was worth £55.80. Today, its [...]
The UK economy doesn’t need an industrial strategy – it needs liberation December 21, 2016 There seems to be widespread agreement within the political class that the British economy is in need of “rebalancing.” It is argued that too big a fraction of UK output is generated by the services sector, and too little by manufacturing. Changing the sectoral composition of British GDP is an explicit objective of Theresa May’s [...]
The death of cash, the rise of trade unions and other eclectic 2017 predictions December 21, 2016 It’s certainly been an eventful year. But rather than dwell on the past, what sort of things can we expect in 2017? Here are a few eclectic predictions. Sweden may become the world’s first cashless economy. Notes and coins are already fast disappearing as a means of payment, and retailers are legally entitled to refuse to [...]
Save the date: the last Spring Budget will be on 8 March 2017 – before Article 50 December 20, 2016 The next UK government Budget announcement will take place on 8 March 2017, before the government triggers Article 50, the Treasury has announced. Prime Minister Theresa May has outlined plans to notify the EU of the UK's intention to leave by the end of March 2017. Official negotiations with the EU will then commence. Philip [...]