Oil prices hit $50 around the world as Opec’s production cut decision continues to make waves in markets worldwide December 1, 2016 The trading frenzy sparked by Opec’s historic deal on Wednesday to agree a production cut has continued to make its presence felt throughout markets worldwide, with oil-related shares gaining further and futures prices rising beyond the levels seen after the announcement. Prices for both Brent crude and West Texas Intermediate (WTI) traded well above $50 per [...]
Pound shoots up as Davis says UK could pay for single market access December 1, 2016 The British pound rose sharply to break $1.26 after Brexit secretary David Davis said in a speech the UK may continue to pay money into the European Union budget in order to preserve Single Market access. The pound/dollar spot exchange rate had opened the day at $1.2506, but rose sharply this morning to reach intraday highs [...]
US manufacturing PMI shows world’s biggest economy is strengthening before Trump presidency December 1, 2016 The US economy’s growth is gaining pace according to an important measure of manufacturing activity, further signalling the strength of the nation’s recovery as the Barack Obama administration comes to an end. The manufacturing purchasing managers’ index (PMI) rose to 54.1 in November, an increase of 0.7 percentage points since last month’s survey, compiled by [...]
Eurozone unemployment falls below 10 per cent for the first time since 2011 December 1, 2016 Eurozone unemployment has fallen below 10 per cent for the first time since 2009, as the European Commission revised down September’s unemployment rate to 9.9 per cent. The unemployment rate for October now stands at 9.8 per cent, 0.8 points lower than the same point last year. The figures still show a large deficit in [...]
UK manufacturing PMI falls to 53.4 but shows relatively confident sector ahead of leaving EU December 1, 2016 Confidence in the UK’s manufacturing sector posted a surprise fall in November, as the weak pound exerted pressure on manufacturers buying materials from abroad. The manufacturing purchasing managers’ index (PMI) fell to 53.4, down 0.8 points since last month, although rates of expansion are still "solid", according to survey compiler IHS Markit. This was the second [...]
Eurozone manufacturing PMI rises slightly to 53.7 but Germany posts worrying decline December 1, 2016 A closely-watched indicator of Eurozone manufacturing activity rose slightly in November, as the bloc’s industry recovered confidence following the UK’s June vote to leave the European Union. The manufacturing purchasing managers’ index (PMI), which is closely watched by policymakers, increased 0.2 points to 53.7, to reach its highest point since the start of 2014. Any figure [...]
Italy’s exit from the Eurozone is almost inevitable – whichever way it votes this weekend December 1, 2016 Two long-term trends make me worry about the Italian economy, regardless of the outcome of the referendum this weekend. First, the so-called Italian Death Cross, and second the prospect of three decades of lost growth (yes three, this isn’t a typo). In my view, these two trends make Italy’s exit from the euro almost inevitable [...]
The chairman of the OBR doesn’t think Hammond’s Autumn Statement stimulus will be a big boost to productivity November 30, 2016 Chancellor Philip Hammond’s planned productivity spending spree won’t have a big effect on the UK’s economy, according to an influential economist. Robert Chote, the chairman of the Office for Budget Responsibility (OBR), has said Hammond’s plans to boost infrastructure spending did not not have an effect on forecasts. “This is not the near-term fiscal stimulus [...]
Oil prices shoot up as Opec agrees its first production cut since 2008 November 30, 2016 Investors piled into oil futures and related stocks yesterday evening after Opec defied expectations and revealed a deal to cut production by 1.2m barrels a day. Brent and West Texas Intermediate (WTI) crude prices soared as the Saudi Arabia-led cartel announced its first agreement since 2008. The Organisation of the Petroleum Exporting Countries will reduce [...]
Mario Draghi has urged EU governments to seize the opportunity from lower interest rates to boost productivity November 30, 2016 Mario Draghi has called on policymakers to “seize” the “window of opportunity” provided by accommodative monetary policy to boost productivity growth in the face of an ageing population. The European Central Bank president has become the latest central banker to warn that slowing productivity threatens global growth, and to urge governments to address the productivity stagnation [...]