French unemployment falls to lowest level in four years ahead of presidential election August 18, 2016 Unemployment in France has fallen to its lowest level in four years, ahead of the country's presidential election next year. The rate of unemployment has fallen below 10 per cent for the first time since 2012, beating expectations. The rate came in at 9.9 per cent in the second quarter, beating expectations fo 10.1 per cent, [...]
Small housebuilders are the answer to the housing crisis. Here’s how we can help them August 18, 2016 The housing crisis is one of the most important policy challenges we currently face. As the gap between supply and demand grows, the lives of hard-working families become harder. While there are obvious societal issues, the economy also suffers. In 2014, Bank of England governor Mark Carney admitted that the UK’s booming housing market had become [...]
Top think tank says big bucks for graduates may be about to end August 18, 2016 The graduate pay premium could come tumbling down over the next few decades, according to the Institute for Fiscal Studies (IFS), with companies unable to carry on offering bumper pay packets for swathes of degree-holders. Recent graduates earn more than £12 an hour on average, while the typical employee in the same age group with [...]
Political threats could hit fragile global growth August 18, 2016 The global economy is in danger of being blown off course by any number of political risks stalking both advanced and emerging markets, Moody’s warned today. In its quarterly economic outlook, analysts said they expected growth to be stable, if unspectacular, over the next two years, but highlighted a cocktail of threats or "downside risks" – from the [...]
US Federal Reserve minutes contain hawkish undertones August 17, 2016 The minutes from the US Federal Reserve's meeting on 26-27 July showed growing support for an interest rate rise. An unnamed individual agreed with the Federal Open Market Committee member who voted to increase borrowing costs at the meeting. "Given their economic outlook, they judged that another increase in the federal funds rate was or would soon be warranted, with a [...]
Japanese officials hit the brakes on yen rally August 17, 2016 The Japanese yen has eased back today after a top government official threatened direct intervention if the currency continued to strengthen. The yen broke below ¥100 against the US dollar yesterday as investors continued to flock to the currency, seen as a safe haven because of Japan's low inflation. The dramatic rally over the last [...]
The Office for National Statistics has put together an economists supergroup to avoid dodgy data August 17, 2016 The Office for National Statistics (ONS) has beefed up its research team with the appointment of a new expert panel of economists – a supergroup, if you will – as it seeks to respond to a string of criticism. Former Bank of England rate-setter Martin Weale, who has just left the monetary policy committee (MPC) after a [...]
Household income surpasses pre-crisis levels – but not for those in work August 17, 2016 Disposable incomes have finally reached their pre-crisis high after a seven-year battle to recover from the recession. UK households had an average of £26,400 to spend in the last financial year, according to the Office for National Statistics (ONS), up 2.7 per cent on the year before and back above the £26,000 level reached in 2007/08. The [...]
Norway’s sovereign wealth fund worried about Brexit uncertainty August 17, 2016 Norway's sovereign wealth fund rode out market turbulence in the second quarter to boost its holdings by an extra £8bn. The world's largest fund of its kind clocked a return of 1.3 per cent – just shy of the market average – as it highlighted "sharp" volatility as a result of the UK's Brexit referendum. With [...]
With inflation expected to hit 3 per cent in 2017, is the Bank of England right to prioritise growth over price stability? August 16, 2016 Martin Beck, senior economic adviser to the EY Item Club, says Yes. In light of the sharp post-referendum drop in the value of the pound, prices of imported goods are set to increase. As a result, inflation will rise over the next year. As our forecast suggests, CPI inflation is expected to peak at around 3 [...]