US inflation breaks above two per cent for first time since 2014 January 18, 2017 Inflation in the US broke through the Federal Reserve's two per cent target in December for the first time since 2014, strengthening the case for a rise in interest rates over the coming year. Consumer prices rose by an annual rate of 2.1 per cent in December, after inflation of 1.7 per cent the month before, [...]
Sterling retreats from Theresa May’s Brexit speech-inspired highs, boosting the FTSE 100 January 18, 2017 Sterling has fallen back from its strongest one-day performance since 1993, helping to nudge the FTSE 100 back into profitable territory. The sterling spot exchange rate against the US dollar had fallen by more than 1.1 per cent at the time of publication to trade below $1.23. It had traded well above $1.24 after Prime [...]
Oil prices have plummeted below $55 per barrel January 18, 2017 Oil prices plummeted to below $55 per barrel this morning after an initial increase. West Texas Intermediate crude and global benchmark Brent futures were trading down as much as 1.5 per cent this morning. At the time of publishing, Brent was down 83 cents to $54.64 per barrel while WTI futures were down 67 cents to $51.69 per barrel. Read more: Oil [...]
Higher inflation boosts ECB hawks’ case for tightening ahead of monetary policy meeting January 18, 2017 Inflation in the Eurozone rose sharply in December, the European Commission has confirmed, adding further to pressure on the European Central Bank (ECB) to begin withdrawing its historically expansive monetary policy support on Thursday. Consumer prices across the bloc increased by 1.1 per cent, a steep rise from the 0.6 per cent growth recorded the [...]
The US dollar lifts against Japanese yen ahead of Yellen’s speech January 18, 2017 After falling to a seven-week low against the yen, the dollar lifted today as investors await Federal Reserve chair Janet Yellen's speech on monetary policy. The dollar was up 0.4 per cent to 113.05 yen after hitting the low of 112.57 yen, while the dollar index was at 100.50, up 0.2 per cent, according to [...]
The nightmarish state of the public finances makes NHS reform even more urgent January 18, 2017 While Westminster was awaiting the first lines of Theresa May’s Brexit speech yesterday morning, the government’s fiscal watchdog issued a devastating judgement on the long-term health of the country’s finances. According to the Office for Budget Responsibility (OBR), the accelerating cost of the NHS will double the national debt relative to GDP by the middle [...]
Why do bad companies stay in business for so long? Just ask an economist January 18, 2017 A bookseller in the Yorkshire Dales has hit the headlines, branded a “shopkeeper from hell”. He called a customer a “pain in the arse”, and has been the subject of numerous complaints to the local parish council about his rudeness. To complete the outrage, he charges 50p as an entry fee to his shop. The [...]
Cairn ploughs on in the North Sea January 17, 2017 Cairn Energy says it has the funds to fuel its projects through to production. The independent oil and gas explorer expects first oil from its Catcher and Kraken developments east of the Shetland Islands this year. The wells are expected to produce 25,000 barrels of oil equivalent per day. Simon Thomson, Chief Executive, Cairn Energy PLC said: “Cairn [...]
Higher fiscal spending could prompt faster tightening of monetary policy says Federal Reserve’s Brainard January 17, 2017 Donald Trump’s economic policy could lead to a faster pace of monetary policy tightening, according to an influential member of the US Federal Reserve’s rate-setting body. If the US President-elect’s policies lead to higher inflation at a time when the US is approaching full employment, the Federal Open Market Committee (FOMC) could be forced to [...]
Theresa May must be even bolder to make Global Britain a free-trading success January 17, 2017 “Fear not, we are of the nature of the lion.” – Queen Elizabeth I There was just enough in Theresa May’s speech today to reassure those who campaigned to leave the EU. Crucially, she made clear that we are definitely leaving the Single Market and taking control of our borders. She suggested only a great [...]