Would likely election winner Hillary Clinton be better for the US economy than her predecessor Barack Obama? October 31, 2016 Molly Kiniry, a consultant at the Legatum Institute, says Yes. On their first day in office, US Presidents are handed the nuclear launch codes, but not a magic wand for the economy. Their commercial role is largely about projecting confidence and building trust. The US economy is inextricably linked to global markets, which are unwilling to [...]
Essential item spending grows as consumers buy more food, drink and petrol October 31, 2016 Essential item spending growth was up for the first time in nearly two years last month, new figures show. Lloyds’ essential spending measure leapt half a percentage point to 0.2 per cent last month. The figure, in today’s Lloyds Bank Spending Power Report, was boosted by continued growth in food and drink expenditure. Read more: Big [...]
European banks struggle for profits in face of multiple headwinds October 31, 2016 European banks will continue to struggle for profitability in the face of multiple headwinds, including higher capital requirements, low interest rates and a weak economy, according to new research published today. The average return on equity across all banks in the EU stands at around three per cent, according to the report from consultancy giant [...]
City firms expected to forge strong deals after Brexit October 31, 2016 Independence from European Union laws and regulation will enable the UK to “make beneficial trade deals with partners around the world”, according to analysis from the Legatum Institute, a think tank whose Special Trade Commission was set up post-referendum to examine the UK's negotiating options. While senior figures from across the City have raised concerns [...]
Bank of England governor Mark Carney looks ready to remain in post beyond 2018 October 30, 2016 Mark Carney is expected to extend his term at the Bank of England beyond 2018 after a weekend of speculation over his future. The governor is said to be readying himself to make a statement on his future this week and put an end to the uncertainty. Read more: Mark Carney looks set to leave [...]
Profit warnings edge up with some firms pinning blame on Brexit October 30, 2016 The number of companies that issued profit warnings rose slightly in the third quarter of 2016, with the UK’s June vote to leave the European Union cited by almost a third as a factor in undershooting expectations. Companies listed in the UK issued 68 profit warnings in the quarter, according to a report by accountancy [...]
Fifth of workers paid less than recommended living wage October 30, 2016 A fifth (22 per cent) of workers in Britain earn less than the amount deemed to be a living wage, according to research out today. The study, carried out by Markit on behalf of KPMG, discovered that some 5.6m workers are paid less than the £8.25 per hour, or the £9.40 per hour in London, recommended by the [...]
Mark Carney looks set to leave the Bank of England in 2018 October 29, 2016 Bank of England governor Mark Carney is unlikely to take up the three-year extension option on his term at the central bank. He could announce the decision as soon as Thursday. According to The Times, senior City figures who know the governor said they believed it was more likely than not he would choose to [...]
World Bank appoints Kristalina Georgieva as chief executive October 29, 2016 Kristalina Georgieva has been appointed chief executive of the World Bank. The Bulgarian will effectively replace Sri Mulyani Indrawati, the bank's managing director and chief operating officer, though the title of chief executive is newly created. Indrawati was appointed Indonesian finance minister in July. Georgieva, the former head of EU humanitarian affairs and vice-president of [...]
Third quarter US GDP beats expectations, bolstering rate rise hopes October 28, 2016 Uncle Sam surprised the markets this afternoon by announcing that the US economy was growing at a faster rate than expected. US gross domestic product (GDP) grew at 2.9 per cent over the last 12 months, the fastest rate for two years. A consensus of analysts polled by Reuters expected growth of 2.5 per cent. Read [...]