Fresh delay for US rate hike on weak growth figures August 1, 2016 The prospect of a second US interest rate rise since the recession has slipped back following weak GDP data and some dovish comments from one of the Federal Reserve's key rate-setters. Futures markets now indicate the probability of a rate rise by the end of the year is less than one in three, down from around [...]
Asian shares climb on weak US and Eurozone growth figures August 1, 2016 Asian shares climbed higher overnight everywhere except China as markets benefitted from Friday’s weak growth figures in both the US and the Eurozone. Japan’s Nikkei 225 added 0.4 per cent to hit 16,635, largely unchanged on its level before the Bank of Japan (BoJ) decided on Friday to hold back on fresh stimulus. In Hong [...]
As French growth grinds to a halt, is the country’s economic model fundamentally broken? August 1, 2016 Tim Worstall, senior fellow of the Adam Smith Institute, says Yes. France’s economic model is irretrievably broken. Along one axis we have a spectrum of possible economic models. We can have low tax and redistribution market economies and high tax and redistribution ones. Non-market economies do not work. Further, the more we tax and redistribute, the [...]
Week ahead: Banks take centre stage for results and interest rates August 1, 2016 The Bank of England is widely expected to cut interest rates for the first time in seven years this week as it assesses the fallout from the UK’s vote to quit the European Union. The Bank held fire in July in the immediate aftermath of the Brexit vote, catching some analysts off guard. Policy committee members [...]
Interest rates could be about to get more interesting, with cut to 0.25 per cent widely expected next week July 31, 2016 Banks and savers alike will be bracing themselves for Thursday's Bank of England announcement, when it is largely expected interest rates will be chopped. The bank surprised many a few weeks ago when it opted to hold interest rates at its historically low 0.5 per cent level, where it has stuck since March 2009. Many [...]
You’re probably not earning that “graduate premium” you were told about July 31, 2016 Young people entering higher education to boost their future earnings are in for a shock, according to new research, which claims the idea of an earnings premium for graduates has become a myth. “Any politician or policy-maker who dangles the carrot of an average lifetime earnings premium should be challenged for gross mis-selling," said co-founder [...]
US second quarter GDP was weaker than expected – and first quarter growth has been revised down July 29, 2016 US GDP has missed expectations in the second quarter coming in at 1.2 per cent – far below the forecast 2.5 per cent. To make things worse, GDP growth in the first quarter was also revised downwards from 1.1 per cent to 0.8 per cent. Consumer spending – which makes up most of US GDP – grew [...]
Business shows its bounceback-ability as confidence jumps after Brexit fall July 29, 2016 Confidence among UK firms has bounced back in July after plummeting in the immediate aftermath of the EU referendum, a leading indicator has found. The Lloyds business barometer jumped 23 points over the past four weeks to stand at 29 on an index where positive scores indicate overall optimism. In the days after the vote [...]
Never mind GDP – euro edges up as eurozone inflation hits eight-month high July 29, 2016 The euro rose 0.2 per cent against the dollar to $1.1100 this morning after a slew of figures from the eurozone suggested things are getting better, albeit slowly. Eurozone inflation rose to the lofty heights of 0.2 per cent in July, its highest since the end of last year, better than analysts' expectations of 0.1 per cent. [...]
This one chart shows how bad real wage growth in the UK really is July 29, 2016 Since the downturn wage growth in the UK has been sluggish, to say the least. But now figures put together for City A.M. by Statista using figures from the TUC has shown quite how disappointing growth has been: between 2007 and 2015, wages have fallen 10.4 per cent in real terms. The only OECD country [...]