Before the bell: What you need to know before the US market open September 20, 2016 Theresa May has been buttering up Wall Street following the Brext vote and drug giant GlaxoSmithKline has a new chief executive. Here's what you need to know before the US open at 2:30pm London time. The US futures markets are pointing higher ahead of the open. The S&P is up by 0.38 per cent, the Nasdaq [...]
Two banks are betting on the US raising interest rates tomorrow September 20, 2016 The world's most important central bank meets tomorrow to decide whether to raise interest rates for only the second time since the financial crisis. This week is realistically the US Federal Reserve's last chance to change rates before the US election. While the rate-setting Federal Open Market Committee (FOMC) will meet just one week before the 8 [...]
Evolve or die: The high street is not dead but it must shape up fast to lure shoppers September 20, 2016 Reports on the impending death of the high street may be greatly exaggerated. According to the new Omnico Retail Gap barometer, browsing and paying in-store is still the nation's favourite way to shop, with 43 per cent of consumers choosing this method. This was followed by 17 per cent of people who said they liked [...]
Steepening the curve: The Bank of Japan may modify its bond buying scheme to ease pressure on commercial banks, insurers and pension funds September 20, 2016 In a defiant speech earlier this month, Bank of Japan (BoJ) governor Haruhiko Kuroda insisted that there is plenty of ammo left in his monetary policy clip. With a comprehensive review of the effects of monetary policy on prices and the economy promised at tomorrow’s BoJ meeting, speculation is rife about what surprises could be in [...]
Opec is like a latter-day Ratpack act: It doesn’t need new material to move the market September 20, 2016 How many stories are there in town at the moment? What are the current obsessions for traders who, now that September is here, are routinely swinging the equity market over one per cent on a daily basis? To my mind, after a seemingly endless succession of sessions in July and August without a one per cent [...]
Canada issues vote of confidence in London’s future with new export hub September 19, 2016 Canada is to open a brand new trade hub in London this week in a big vote of confidence in the capital's post-referendum economy. Export Development Canada (EDC), the Canadian government's official export support service designed to help its firms crack in to new markets and win investment from around the world, will launch its second European operation at [...]
Dear Juncker, more integration is not the answer to EU woes. Focusing on cooperation between states might do the trick September 19, 2016 The EU’s head honcho, Jean-Claude Juncker, was in the news last week for the televisual highlight of all good Europeans: his annual State of the Union address. It was a sombre affair, unlikely to cheer up anyone’s Wednesday morning. It sounded like a eulogy, and Juncker should at least be commended for his honesty. Addressing members [...]
Central banks have been “overburdened for far too long” by markets, says Bank for International Settlements September 18, 2016 Recent financial market events have demonstrated how dependent they have become on central banks, the Bank for International Settlements (BIS) has said. And central banks have been “overburdened for far too long”, said Claudio Borio, head of BIS’ monetary and economic department. “Developments in the period under review have highlighted once more just how dependent on central [...]
Head of Germany’s central bank warns EU against further integration after Brexit September 18, 2016 The head of Germany’s central bank has warned the EU against pushing for further integration after the UK’s Brexit vote. Jens Weidmann, the president of Deutsche Bundesbank, said this approach “no longer resonates with the public”. In a meeting with media organisations including the Guardian, Weidmann said: “For many of its citizens, Europe has indeed [...]
RIP Grexit? Citi says it no longer believes Greece will leave the EU September 16, 2016 Remember Grexit, the EU-changing event that didn't happen before Brexit did (almost) happen? Citi, the lender whose chief economist coined the term, has said it is now so unlikely it is removing it from its baseline scenario. RIP Grexit. In a note today analysts said although bailout negotiations between Greece and its so-called troika of creditors – the [...]