Dollar pressure continues to beat down Asian currencies in wake of Trump election November 15, 2016 China’s yuan today fell to its weakest point since December 2008 against the dollar as concerns over US President-elect Donald Trump’s policies led investors to pile more pressure on Asian stocks. The yuan fell to 0.146 against the dollar, continuing a steady decline from a peak of 0.165 in 2014 and a 52-week peak of [...]
We’ve hit peak gig economy, according to JP Morgan November 15, 2016 The number of people racing to make money from driving an Uber, offering their services on TaskRabbit or renting out a spare room on Airbnb has peaked, according to one top investment bank. Growth in the number of people participating in the gig economy has slowed and is now plateauing, new research from JP Morgan has [...]
Sterling falls back below $1.24 after a surprise fall in inflation – pushed down by tuition fees and clothes November 15, 2016 So much for the Trump rally. The pound fell back below $1.24 this afternoon after figures from the Office for National Statistics (ONS) showed prices rose 0.9 per cent in October – missing expectations. Economists had expected the weaker pound to push consumer price inflation (CPI) to a two-year high of 1.2 per cent, from September's one [...]
Mark Carney accuses politicians of a “massive blame-deflection exercise” and warns City firms to hold off leaving UK November 15, 2016 Mark Carney today defended central bank policies in front of MPs, saying that politicians blaming inequality on the actions of central bankers were engaged in a “massive blame-deflection exercise”, while also warning firms not to leave the City because of Brexit. The Bank of England governor held firm on the bank’s forecast of inflation above [...]
Mark Carney just confirmed when he will step down from the Bank of England November 15, 2016 Bank of England governor Mark Carney has confirmed he will step down from his post as governor of the Bank of England at the end of June 2019. In an appearance in front of the Treasury Select Committee today, Carney confirmed he will step down on 30 June even if Article 50 is delayed, adding [...]
UK property prices went up in September as new buyer enquiries rose – but new sales listings went into decline November 15, 2016 Property prices continued to rise in September, as new buyer enquiries increased modestly – but the number of new homes being listed for sale dropped. The average price of a property in the UK was £217,888 in September, with official statistics showing prices went up 7.7 per cent on an annual basis. Property prices rose 0.2 [...]
Public borrowing could overrun by £100bn over the next five years November 15, 2016 Philip Hammond could be on track to overshoot previous public borrowing forecasts by £100bn in total by 2021, a report out today has warned. PwC also found that, if the new chancellor opts to keep the status quo on spending despite June's referendum result, this year's public sector net borrowing will come in at £67bn, around £10bn [...]
The Trump-Hammond-Keynesian consensus is wrong: Higher infrastructure spending does not equal greater growth November 14, 2016 To a man with a hammer, everything looks like a nail. Or when it comes to the UK economy: to an economist who believed in fiscal stimulus in 2011, every period of time looks like an opportunity for more government spending. In the aftermath of Donald Trump’s victory last week, even his most vociferous left-leaning economic critics [...]
Donald Trump’s $1 trillion spending plan spurs global bonds sell-off as Dow reaches record highs November 14, 2016 The global bond market is undergoing a massive sell-off as investors weigh the implications of US President-elect Donald Trump’s unorthodox policy proposals. Today the yield on 30-year US Treasury bonds rose above three per cent for the first time since the start of January, owing to fears that inflation will rise once Trump’s policies take effect. [...]
Just when you thought it was all going to be ok, Eurozone industrial production has fallen again November 14, 2016 Eurozone industrial production fell 0.8 per cent in September after a strong 1.8 per cent rise in August, adding to a volatile 2016 so far for European industry. Denmark and Germany posted the largest individual country declines, according to the data released today by the European Union’s statistics agency. They fell 8.1 per cent and 1.9 [...]