Sterling steadies after its worst three-week performance since 1992 July 8, 2016 Sterling steadied today after a tumultuous run over the past few weeks that saw the currency touch 31-year lows. The pound rose by 0.24 per cent against the dollar this morning, to $1.2939, and was up 0.13 per cent against the euro – £1 will now buy €1.1684 on the money markets. On Wednesday, the pound [...]
Brexit vote pushes confidence down at fastest pace in two decades July 8, 2016 One of the most closely-watched barometers of consumer confidence has suffered its sharpest monthly decline in more than two decades as the Brexit shock kicks in and households prepare to tighten the purse strings. The GfK consumer confidence index sank further into negative territory – scores which indicate more people feel the economy will get worse than better – between June [...]
London generates over a quarter of the UK’s so-called economy taxes, and that could be a problem post-Brexit July 7, 2016 London is stumping up a substantial amount of the UK's taxes, and that could create issues for the country after Brexit, a report out today has found. According to the figures from the Centre for Cities, in 2014-15, London shelled out 28.6 per cent of the UK's economy taxes, which the think tank defines as those [...]
Switzerland’s banks looking to build ties with Britain ahead of EU negotiations July 7, 2016 Switzerland's banking sector hopes to build a coalition with other international financial centres, including Britain, in order to help with negotiations around access to European Union markets. Banks based in Britain have been able to sell financial services freely across the EU under the bloc's "passporting" system, but this access could be lost after the vote to [...]
Strong GDP estimates conceal signs of Brexit contraction July 7, 2016 The UK economy grew by 0.6 per cent in the second quarter of the year according to a new estimate from the National Institute of Economic and Social Research (Niesr) published today. The think tank reckons growth will have picked up from the sluggish 0.4 per cent clocked in the first three months of the year, but [...]
World on course for record number of debt downgrades July 7, 2016 This year will see more downgrades to government credit ratings than ever before, one of the top sovereign debt calculators has predicted. Fitch said 15 countries have already had their credit score slashed, and another 22 are on course for a downgrade if they do not swiftly improve their economic outlook. This puts the world on track [...]
Brexit risks means investors can’t get enough of government debt July 7, 2016 The demand for government debt was its strongest for more than three years in the second post-referendum auction of UK bonds held this morning. Investors jumped at the opportunity to get their hands on the safe haven 10-year bonds, with demand for the £2.25bn worth of coupons on offer outstripping supply by 2.3 to one. [...]
One analyst thinks sterling could reach parity against US dollar July 7, 2016 Sterling could be on course to reach its lowest ever level against the dollar if the country does not sort out the political crisis and secure a good deal with Europe, a leading economist has warned. The chief economic adviser to insurance giant Allianz, Mohamed El-Erian, said the pound is "facing a double whammy" of [...]
Asset managers close the gate on £15bn-£20bn funds July 7, 2016 Post-referendum reverberated through the City yesterday as several more property funds were forced to shut the gate on their investors, while the value of the pound languished below $1.30. Six companies’ funds, with an estimated value of £15bn to £20bn, have been frozen this week as fears over the consequences of the UK’s vote to leave [...]
Business confidence comes crashing down after Brexit vote July 7, 2016 The latest evidence of the extent to which the UK's vote to leave the EU has shaken the economy has been released today, with another survey showing a remarkable decline in business confidence. The Lloyds business barometer crashed from a score of 32 to just six on an index where positive scores indicate rising business activity. [...]