This Deutsche Bank analyst thinks the pound could fall another 16 per cent against the dollar February 14, 2017 The pound's dip today may have left some investors a little shaken – but you ain't seen nothing yet, one Deutsche Bank analyst has warned. George Saravelos, the lender's global co-head of FX, said in a Bloomberg interview that the pound could fall as low as $1.05 – or another 16 per cent. "Being bearish [...]
Inflation: How far will UK consumer prices rise this year? February 14, 2017 Inflation has already hit a 31-month high, but economists are almost universally predicted a steep rise in consumer prices over the coming year. The Bank of England (BoE) expects consumer prices to rise to 2.7 per cent by the end of this year, but other economists think that might be at the more conservative end [...]
Eurozone growth lower than expected as German inflation approaches European Central Bank target February 14, 2017 Growth in the Eurozone was revised down in the fourth quarter as more accurate data revealed a weaker than expected German economy as well as a surprise contraction in the struggling Greek economy. Growth in Europe's largest economy rose in the fourth quarter of 2016, confirming a solid rate of expansion for the year but [...]
The pound has fallen well below $1.25 on bad inflation news February 14, 2017 The pound plunged below $1.25 this morning, after disappointing figures showed inflation was weaker than expected in January. The pound fell as low as $1.2457 in mid-morning trading, 0.55 per cent down. Meanwhile, it fell 0.68 per cent against the euro, dropping to €1.1739. Inflation had been expected to hit 1.9 per cent in January, [...]
Inflation rises closer to Bank of England’s target rate as factory gate prices soar February 14, 2017 Consumer prices growth accelerated at the fastest rate in 31 months in January, raising pressure on the Bank of England (BoE) to tighten monetary policy as inflation approaches its two per cent target, while a big jump in producer prices threatens to squeeze margins for manufacturers. The consumer price index (CPI) of inflation rose by [...]
The rise in insecure work is costing the Exchequer £4bn a year, warns the TUC February 14, 2017 The sharp rise in insecure work across the UK is costing the government – to the tune of nearly £4bn a year in lost tax income and benefit pay-outs. That's according to the Trades Union Congress (TUC), which says that total represents nearly a quarter of the social care budget spent in England. Its new [...]
Want a more equal society? Be careful what you wish for February 14, 2017 Consider this thought experiment. You have been transported back to 1912 and have the power to change the course of history. You foresee a century ravaged by the effects of two catastrophic World Wars, with a resulting 100m casualties. You also know the effects of violent communist revolution and rule, with a death toll almost [...]
Steve Mnuchin confirmed as US treasury secretary February 14, 2017 Donald Trump’s pick for US treasury secretary has been approved by the Senate in a vote that divided largely along party lines. Steve Mnuchin’s nomination was confirmed in a 53-47 vote. Mnuchin’s nomination was beset by attacks from Democrats and centred on the foreclosure record of OneWest, a bank where Mnuchin acted as CEO. The [...]
Greek bailout delay could result in re-rerun of 2015, says governor February 13, 2017 Bank of Greece governor Yannis Stournaras has warned that the country must secure an immediate release of further bailout funds from its creditors or risk recession. “Any further delay in completion beyond this month will feed a new circle of uncertainty,” he told Greece’s parliament. “Such a vicious cycle could return the economy to recession [...]
The Bundesbank conspiracy: Why Germany is really repatriating its gold February 13, 2017 An official announcement last week that the Bundesbank had pretty much repatriated half its gold reserves ahead of schedule has once again sent the rumour mill into overdrive. Fans of the precious metal – not shy of a good conspiracy theory – have been deliberating over the move ever since Germany detailed it back in 2013. Initially, [...]