Hold: The ECB keeps interest rates and QE purchases steady as Mario Draghi defends loose policy from hawkish critics January 19, 2017 The European Central Bank (ECB) has kept interest rates constant and made no changes to its quantitative easing programme, despite growing pressure to remove its historically high rates of monetary stimulus. The ECB’s rate-setting governing council kept its three main interest rates at the same levels since March 2016, when they were cut further in [...]
How the Trump rally affected stock market valuations January 19, 2017 | City Talk Stockmarkets rarely rally in the face of political and economic uncertainty. The combination of Brexit, Donald Trump’s election, the return of inflation and prospect of higher interest rates would normally undermine demand for shares. But instead, stockmarkets have rallied with some indices hitting all-time highs. Investors expect his policies to reinvigorate the US economy, and [...]
What to watch when the European Central Bank reveals its latest monetary policy decision January 19, 2017 After Janet Yellen gave a surprisingly hawkish speech to San Francisco’s Commonwealth Club last night, today’s turn in the monetary policy spotlight belongs to Mario Draghi. The Governing Council of the European Central Bank (ECB) meets today at its Frankfurt headquarters to discuss its three interest rates (currently near zero) and its controversial asset purchase [...]
The Brexit I love versus the Brexit I fear: A British renaissance or a missed opportunity January 19, 2017 What will the UK economy look like outside the EU, 10 years from now? Nobody knows the precise answer to this question but we can generate likely potential scenarios. What follows are two scenarios, the Brexit I love and the Brexit I fear. The Brexit I love is where the UK is open to the [...]
President Trump should be positive for the UK economy – in the short term at least January 19, 2017 When the US electorate chose Donald Trump as their next President, they voted for a big break from the liberal consensus which Hillary Clinton epitomised. Globalisation had not served Trump supporters well, and they wanted something radically different. We are now beginning to get more of a taste of what this might be. Some of [...]
After wages grew faster than expected in the three months to November, is the UK economy overheating? January 19, 2017 Charles Dumas, chairman and chief economist at Lombard Street Research, says Yes. The 2016 British economy was at or above its potential, with no slack. Official estimates of a little slack ignore domestically generated inflation picking up fast. If you impose a 15 per cent devaluation on an economy already fully employed, you do not [...]
UK and Europe set for record dividend pay-outs in 2017 despite big political risk January 19, 2017 The biggest companies in the UK and Europe are set to pay out a record €315bn (£272bn) in dividends over the course of this year despite political headwinds from Brexit and multiple elections in important EU countries. Dividend pay-outs will rise by four per cent compared with the €302bn paid last year by companies in [...]
London tech startup SuperAwesome is considering an IPO January 18, 2017 A London tech startup specialising in helping brands such as Lego, Mattel, and Peppa Pig maker eOne comply with rules on advertising to kids online is considering an IPO. SuperAwesome is exploring a potential listing on the London Stock Exchange this year, City A.M. understands, and has engaged with several City institutions at the early stages of exploring going public, but has [...]
UK wages grow at fastest rate since September 2015, while unemployment rate retains 11-year low January 18, 2017 Wages grew faster than expected at the end of 2016, while unemployment stayed steady at 4.8 per cent, as the UK labour market showed little sign of any short-term Brexit effect. Weekly pay grew by an annual rate of 2.8 per cent including bonuses from September to November, according to the Office for National Statistics. [...]
Last hurrah for North Sea oil expected this year according to Wood Mackenzie January 18, 2017 North Sea oil production will peak this year before falling back in 2018, according to a new report by Wood Mackenzie, a global energy consultant. This is because of a lack of investment and exploration, the analysts say. In 2017 British oil production will rise for the third straight year, but analysts say this is the peak. [...]