As Mark Carney warns of a “material slowing in the economy”, can Britain avoid a recession? July 5, 2016 Simon French, chief economist at Panmure Gordon, says Yes. Avoiding a recession is now the number one challenge facing our economic policy-makers. Despite a base rate at 0.5 per cent and public sector deficit still in excess of 4 per cent of GDP, the Bank and the Treasury still possess a well-resourced policy arsenal. Nimble use [...]
Sterling sinks below $1.30 for the first time in over three decades July 5, 2016 Sterling has been knocked back today, tumbling against the dollar and the euro as the ramifications of the Brexit vote continue to filter through. The pound was off by two per cent against the dollar, falling to exactly $1.2997 shortly after the London market close. It bounced after falling under the psychological barrier, climbing back to dizzy highs [...]
Aviva and M&G become the latest property funds to suspend trading as investors flee the Brexit-battered industry July 5, 2016 Two more property funds have suspended trading today as investors pull their money out of UK commercial property. M&G announced this afternoon that it was temporarily suspending trading in the shares of the M&G Property Portfolio. And earlier today Aviva suspended trading in its property fund, just after the Bank of England said this morning that it was [...]
Banks agree to dish out Carney’s £150bn loan windfall July 5, 2016 The UK's biggest lenders have agreed to dish out up to £150bn in extra loans to households and businesses after George Osborne and Mark Carney heaped pressure on them to prop up the economy after the EU referendum. This morning, Carney announced a cut to major UK banks' capital requirements which will reduce the amount of capital [...]
Carney for PM? Bank of England governor praised for Brexit response July 5, 2016 With political crisis engulfing Westminster in the wake of the EU referendum, businesses have increasingly had to rely on other sources of authority to fill the void. David Cameron has been conspicuously absent from the big stage since he resigned in the hours after the vote, while the Conservative leadership race has hijacked much of the decision [...]
Before the bell: What you need to know before the US market open July 5, 2016 The Bank of England has slashed its capital requirements for UK banks, the pound is at a new 31 year low, and Australia's central bank has held interest rates unchanged at 1.75 per cent. Here's what you need to know before the US open at 2.30pm London time. US futures are pointing south after coming back from [...]
Oil slips below $50 per barrel as global economic storm clouds gather July 5, 2016 The oil price has dipped below $50 per barrel as investors fret over a potential slowdown in global economic growth. It's feared that a global slowdown could result in a slackening in demand and recent supply outages in Nigeria and other exporting nations have not been enough to offset fears. At pixel time Brent crude was [...]
Strong demand for government debt in first post-referendum bond auction July 5, 2016 The UK government dipped its toe back into the waters of the global debt markets today, selling £2.5bn of bonds at record low interest rates in the first auction since the referendum. The debt, which came with a five-year maturity, will yield just 0.38 per cent in a sign investors are still keen to lend to [...]
Carney loosens grip around banks and unlocks £150bn for UK economy July 5, 2016 The Bank of England has slashed its capital requirements for UK banks, paving the way for an extra £150bn to be pumped into the UK economy, in its latest efforts to stop the UK spiralling into a post-referendum crisis. In a widely expected move, the Bank’s Financial Policy Committee (FPC) cut one of its extra [...]
At the open: Sterling sell-off starts again as weak economic data trickles in July 5, 2016 After a week-long hiatus, sterling resumed its downwards drift again this morning, tumbling against the dollar and the euro overnight as the post-referendum rally showed signs of faltering. The pound lost 0.7 per cent against both the major currencies to stand at $1.3187 and €1.1832 as the markets opened in London. That's a fresh 31-year low [...]