Italian PM Matteo Renzi resigns after crushing referendum defeat December 5, 2016 The euro dived to a 20-month low in the early hours of this morning after Italian Prime Minister Matteo Renzi said he would resign following a crushing defeat in the country’s referendum on constitutional reform. Voters comprehensively rejected Renzi’s flagship proposals to streamline parliament, predominantly by cutting the size and power of the Senate. At the time [...]
Venezuela introduces new higher-value notes in response to the world’s highest rate of inflation December 4, 2016 Venezuela’s central bank has announced that it will introduce a new set of coins and notes as the country with the world’s highest inflation struggles to make its currency usable. Six new bills will enter circulation from 15 December, ranging in value from 500 Venezuelan bolivars up to 20,000 bolivars. This means the highest-value note [...]
The Rainbow Cafe in Cambridge isn’t accepting the new £5 note December 3, 2016 The Bank of England has already said it's asked its supplier to work on "potential solutions" to the issue of animal fat in its new £5 notes. But until then a vegetarian cafe in Cambridge is taking a stand by announcing it won't be accepting said fivers. The BoE confirmed using a trace of animal fat, [...]
US non-farm payroll: US adds 178,000 jobs in November as wages rise and unemployment falls December 2, 2016 US non-farm payroll data has shown that the US added 178,000 jobs in the month that saw Donald Trump win the Presidential election. Market experts had been expecting an increase of 165,000 in November, slightly above the 161,000 reported for October. Unemployment dropped to 4.6 per cent and wages were up 2.5 per cent. The jobs [...]
Oil prices dip but still on track for recovery after Opec deal December 2, 2016 Oil prices fell slightly on Friday morning, but are still set for a strong week. Investors piled into oil futures and related stocks earlier this week when Organisation of the Petroleum Exporting Countries’ (Opec) revealed a deal to cut production by 1.2m barrels a day. Read more: $50 oil saves FTSE 100 from further falls This [...]
It’s not all bad: UK construction output grew more than expected in November December 2, 2016 Output in the UK's construction sector grew faster than expected in November, figures published today showed – suggesting things might not be as bad as they seemed in the sector. Markit's purchasing managers' index (PMI) for the construction sector rose to 52.8 in November, above expectations of 52.2 and above October's figure of 52.6. Any figure [...]
Editor’s notes: The uncertain art of measuring the UK’s economic uncertainty December 2, 2016 You may not have seen it on the News at Ten but Bank of England Monetary Policy Committee member Kristin Forbes delivered a fascinating speech last week on the nature of economic uncertainty and how best it can be measured. As Donald Trump said when he delivered his victory speech, “it’s a complicated business, folks”. [...]
How to prepare your portfolio for inflation December 2, 2016 | City Talk Concerns about inflation were already on the rise. Donald Trump’s victory in the US election has further stoked expectations that price pressure, absent in most Western economies since the financial crisis, may make a return in 2017 and beyond. The basics Inflation is a measure of how fast the prices of goods and services are [...]
The ‘75%’ chance that the Santa Rally exists December 2, 2016 | City Talk Stock markets are more likely to rise in December than any other month, according to analysis of nearly three decades of data. The analysis conducted by Schroders, which covers the world’s largest markets, adds to the debate over the existence of the “Santa Rally”, an alleged effect often dismissed by seasoned investors. Our analysis measured two [...]
Donald Trump’s unhappy fate is to oversee a financial crisis far worse than the last December 2, 2016 An earthquake doesn’t care if you’re progressive or populist. It destroys your house all the same. Likewise a financial crisis is indifferent to a politician’s policy mix. Systemic crises proceed according to their own dynamic based on the array of agents in a system, and systemic scale. The tempo of recent crises in 1994, 1998, and [...]