Is China’s toxic debt pile the greatest threat the global economy faces? September 26, 2016 Mike Jakeman, global analyst at the Economist Intelligence Unit, says Yes. The Chinese government has already performed one economic miracle – in the 30 years from 1980, it pulled almost 700m people out of extreme poverty. Now it requires another – to wean its fattened economy off a diet of public investment and onto helpings of household [...]
International trade secretary Liam Fox’s steer towards hard Brexit has got the City worried – here’s why September 25, 2016 The government's stance on Brexit appears to be hardening, with international trade secretary Liam Fox set to advocate that the UK pushes ahead and becomes an independent member of the World Trade Organisation (WTO). This would set the UK on a path to leave the EU’s customs union, an area that allows the free movement of goods [...]
Economists are expecting more positive data on consumer confidence this week as shoppers shrug off the Brexit vote September 25, 2016 Consumers' worries about the economic impact of the Brexit vote are fading, as economists are expecting positive data on sentiment to be released this week. Confidence in the UK economy slumped immediately after the EU referendum, but now economists are expecting an uptick. Read more: West End gets Brexit boost as sales to tip over [...]
Boris Johnson hints Article 50 should be invoked before May 2017 September 25, 2016 Foreign secretary Boris Johnson has indicated Article 50, the official signal for Britain leaving the EU, should be triggered before May next year to avoid Britain having to participate in European elections and send new MEPs to Brussels. Britain is due to participate in electing candidates to the European parliament in elections set for May 2019, but [...]
Taking stock: 12 charts showing the first three months of Brexit in the financial markets September 23, 2016 Three months ago today, the UK voted to leave the European Union. Against the judgement of most experts, our own Prime Minister, the President of the United States, think tanks and international institutions that were warning of economic calamity, the Brits decided to quit. The financial markets went into turmoil. The pound collapsed, the FTSE 100 [...]
Boris Johnson’s Article 50 comments send sterling sliding September 23, 2016 Sterling has drifted against the euro and the dollar today, as currency analysts blamed foreign secretary Boris Johnson for spilling the beans on the government's latest Brexit plans. The pound was down 0.9 per cent against the US dollar at $1.2961 at lunchtime, below the crucial $1.30 mark which the currency has settled around in recent weeks. [...]
Eurozone growth hits slowest pace since 2014 September 23, 2016 Economic growth in the Eurozone is crawling along at its slowest pace since the end of 2014, a leading economic indicator has shown. The closely-watched purchasing managers' index (PMI) for activity across the 19-member bloc has dipped to its lowest level in 20 months, raising yet more concerns about sluggish growth on the continent. On an index [...]
France set to bounce back from second quarter economic contraction September 23, 2016 The French economy contracted in the second quarter of the year, new figures have revealed, though a strong bounceback should help the economy avoid a recession. The size of the economy shrunk 0.1 per cent between April and June, French stats body Insee declared this morning. That was worse than earlier estimates, which suggested the economy flat-lined [...]
City finance jobs tumble after Brexit vote September 23, 2016 Job openings in the City dried up over the summer as finance firms put hiring on hold while they assess the damage of the UK's vote to leave the EU, according to new research. The number of advertised vacancies in financial services dropped by 13.6 per cent in the capital in July and August, according [...]
Far from finding it difficult to strike trade deals post-Brexit, the UK is in a prime position. Here’s why September 23, 2016 In the weeks since the referendum there has been much gnashing of the teeth over the UK’s future trade relationship with both the EU and the rest of the world. Much of the negativity expressed by commentators is exaggerated or misguided. The UK remains in a strong position, and can in fact prosper under existing [...]