Keep calm and carry on: City giants play down Brexit hit August 22, 2016 The City's top financial services firms are keeping calm and carrying on in the face of the UK’s shock vote to leave the European Union, according to new research from accountancy giant EY published today. After tracking every public statement from 232 banks, insurers, asset managers, fintech firms and private equity houses since the vote, [...]
Janet Yellen to talk interest rates and Fed shake-up at Jackson Hole August 21, 2016 The Federal Reserve's No. 2 ratesetter has signalled the US economy should prepare for a rate rise in the near future, as Janet Yellen gears up to make a key intervention at the annual central bankers' gathering at Jackson Hole, Wyoming. Stanley Fischer, vice chairman of the Fed said this afternoon he believed the US would [...]
Recession risks fade on upbeat post-referendum data August 21, 2016 Economists believe the chances of the UK economy slipping into a post-referendum recession have slipped, following a steady stream of upbeat economic data. Figures out early last week, compiled before a raft of bumper employment and retail sales statistics had been released, showed the consensus estimate for the UK economy was a 1.6 per cent [...]
Sterling slides as nervy traders cash in August 19, 2016 The pound has tumbled against both the dollar and the euro this afternoon, dampening an otherwise strong week for the currency. After strong post-referendum inflation and retail sales figures had put some steam behind sterling on Wednesday and Thursday, traders started to reassess the dizzying heights of $1.31 and €1.16. Against the US dollar, the pound lost [...]
Top ONS economist: Brexit recession still possible August 19, 2016 The top economist at the Office for National Statistics (ONS) has warned it is too early to rule out the prospect of a recession, despite a flurry of strong post-referendum indicators. Joe Grice, ONS chief economist told Bloomberg this morning there were still too many pieces of the puzzle to put together and would not like to [...]
Public finances falter following EU referendum August 19, 2016 Government income shrunk in July with tax receipts missing expectations in the first sign of a post-referendum hit to the public finances. The government ran a surplus of £977m in July, according to figures published this morning by the Office for National Statistics (ONS), though this was down on predictions for a £1.9bn windfall and [...]
Oil bulls spooked as Brent Crude touches $51 a barrel August 19, 2016 The black stuff bull run has edged back in early morning trading, after oil prices hit a two-month high at the end of an impressive winning streak for the commodity. Brent Crude, the international benchmark, tipped past $51 a barrel overnight, before easing back to stand at $50.56 as the London markets opened and profit-taking kicked in. The [...]
US Fed logs on to Facebook to boost visibility August 18, 2016 The US Federal Reserve has created a Facebook page, adding to its existing Twitter, YouTube, Flickr and LinkedIn pages. The Fed, often criticised for its communication methods, said in a statement it aims to “increase the accessibility and availability” of its “news and educational content” using Facebook’s likes, comments and shares. But will the opportunity to [...]
After retail sales rose strongly in July, did the Bank of England jump the gun by cutting interest rates? August 18, 2016 Tim Price, manager of the VT Price Value Portfolio, says Yes. Brexit hasn’t even happened yet, but Bank of England governor Mark Carney went out on such a limb on behalf of Project Fear that he had no alternative but to cut interest rates, irrespective of our economic condition and the already sharp decline in sterling. [...]
Standard and Poor’s attacks negative interest rates as desperate and damaging August 18, 2016 Central banks’ experiment with negative interest rates risks backfiring in spectacular fashion, top ratings agency Standard and Poor’s (S&P) has warned. In a new report assessing the impact of sub-zero borrowing costs on economies and industries around the world, the ratings agency concluded: “Moving to a negative rate environment, in every circumstance that we’ve looked at, [...]