US jobless claims fall to 44-year low to strengthen Fed rate rise case even further March 2, 2017 The number of people collecting unemployment benefits in the US fell to its lowest in 44 years, astonishing economists and prompting further expectations of an interest rate hike for the Federal Reserve at its next meeting on 15 March. There were 223,000 jobless claims in the week ending 25 February, a 19,000 fall from the [...]
Higher energy prices drive Eurozone inflation to hit two per cent for the first time in four years March 2, 2017 Eurozone inflation hit two per cent in February, beating the European Central Bank (ECB)’s target for the first time since January 2013. The year-on-year rate of inflation rose from 1.8 per cent in January according to flash estimates from the European Commission. The sharp rise over the months since November has mainly been driven by the [...]
Deutsche Boerse has sold its remaining stake in Bats Global Markets March 2, 2017 Deutsche Boerse has offloaded its remaining shareholding in Bats Global Markets. It had sold one third of its stake in the Kansas-based stock exchange operator for $86m (£70m) in October, and said it had already realised a net income contribution of around €23m (£19.7m) from that. It expects the newest sale to boost earnings by €68m this quarter. [...]
Tinkering with business rates won’t fix a fundamentally broken tax on investment March 2, 2017 Business rates reform is crucial for the health of local communities across the country. Retailers pay a quarter of all business rates and it is the single largest tax paid by the industry. Put simply, the burden of property taxation is too high. It is a disincentive to invest in physical space. A system where [...]
Forget the trivial Single Market: Brexit’s true economic dividend will be a revival of self-reliance and liberty March 2, 2017 In order to understand the long-term impact of Brexit on the UK economy, imagine a river running upstream to downstream and out into the ocean. With this in mind, view conventional long-term economic performance as very much downstream, at the mouth of the river, with an emphasis on the performance of productivity and competitiveness. But [...]
New York wins big in global IPO boom – and that’s even before Snap’s flotation is counted March 2, 2017 The New York Stock Exchange (NYSE), home to this week’s eagerly-awaited IPO from Snap, has been the most popular exchange for new listings globally so far this year. The findings come as new data shows that the number of flotations worldwide has surged to levels not seen since before the credit crunch. With 187 offerings [...]
The London Stock Exchange fiasco does not bode well for post-Brexit Brussels March 2, 2017 Breaking up is never easy. For London and Frankfurt's leading stock exchanges this week has been awkward enough, even though their sudden split occurred before they'd managed to tie the knot. Deutsche Boerse's Carsten Kengeter is none too happy about being abandoned by his proposed merger partner. Yesterday's passive aggressive comments about the LSE's decision [...]
Weak income growth set to hit poor households with children, warns the Institute for Fiscal Studies March 2, 2017 Median household income will not grow at all for the next two years, the Institute for Fiscal Studies (IFS) has predicted. In a new report published today, the IFS pointed out that if the Office for Budget Responsibility (OBR)’s forecast for average earnings is correct, median household income will not grow and will be just four [...]
FTSE reshuffle day: Capita and Dixons Carphone replaced by Scottish Mortgage Investment Trust and Rentokil Initial March 1, 2017 Capita and Dixons Carphone have dropped out of the FTSE 100 after its quarterly review of constituents. They will be replaced by Scottish Mortgage Investment Trust and Rentokil Initial, FTSE Russell announced this evening. However, Easyjet and Intu Properties escaped the chop, which will take effect after the close of business on Friday 17 March. Read [...]
Immigrants add £83bn of economic value to London March 1, 2017 Migrant workers in London with full time jobs each contribute an additional £46,000 net in gross value added (GVA) per year to the economy, research by PwC and London First reveals. A combined total of £83bn for all of London’s 1.8m migrant workers is added, making up approximately 22 per cent of the capital’s GVA. [...]