Has the bond bull run’s bubble burst? Unpicking the Trump effect and other influences that will shape the bond market in 2017 January 16, 2017 The election of Donald Trump as US President shocked the world and shocked the world’s markets. Yet that early reaction quickly morphed into euphoria, as stock indices in America experienced huge inflows and hit record highs. For investors left high and dry as trillions of dollars drained from safer fixed income bonds into riskier equities, the [...]
City eyes best possible access to Europe’s Single Market January 16, 2017 The City is shifting to a new focus on best possible access to Europe's Single Market, rather than pinning hopes on continued membership of the trading bloc, as it prepares for the Prime Minister to announce a so-called clean Brexit tomorrow. In a much anticipated speech, Theresa May is expected to make clear the UK’s [...]
Sterling falls below $1.20 as Pacific markets open following reports Theresa May will pursue hard Brexit January 15, 2017 The pound slumped more than one per cent to a three-month low this evening, on fresh concerns the government is preparing to pursue a hard Brexit. As market trading resumed in Australia and New Zealand, sterling fell by as much as 1.6 per cent to $1.1983, taking it below $1.20 for the first time since the [...]
Growth in London’s business activity at 11-month high January 15, 2017 December saw the fastest period of growth in London’s business activity since January last year, according to a report by Lloyds Bank. London’s showing on the Lloyds Bank purchasing managers’ index (PMI) was up 56.1 points in December, from 55.3 in November. Despite the strong figures, London was behind most other UK regions for business [...]
Latest ONS data expected to show inflation at 1.5 per cent January 15, 2017 Data released by the Office for National Statistics this week is likely to show an uptick in inflation, a sign that the fall in the value of the pound is having an impact on prices. An inflation rate of 1.5 per cent in the consumer prices index for December would be a significant increase on [...]
Are we more or less happy after the Brexit vote? January 15, 2017 The unexpected and shock result of the vote to leave Europe is just one of the events that has in recent months illustrated an increasingly divided world. But, in this new territory of uncertain times, fake news, and where it sometime feels like up is down and black is white, just what effect is that having on [...]
Hammond hints Britain could lower corporate tax rate January 15, 2017 Britain will be forced to change its economic model if it does not have access to the European market after Brexit, chancellor Philip Hammond has said, responding to questioning on the UK becoming a tax haven in an interview with a German newspaper. A change to the UK's economic model would have to take place for [...]
Bye-bye Single Market? What to expect from Theresa May’s Brexit plan January 15, 2017 We know Brexit means Brexit, but Theresa May will finally tell the UK exactly what that means this week in the most significant speech of her premiership and setting the course for Britain's exit from the European Union. The Prime Minister will say that the UK is prepared to leave the Single Market, customs union [...]
Volatile sterling can’t stop FTSE set for second week of records January 13, 2017 The FTSE 100 looked set to round out a second week of record gains at lunchtime on Friday, as sterling performance wobbled in volatile trading. Sterling rose as high as $1.2233, but cable has since retreated to trade almost flat at the time of publication. Performance against the euro has fallen more steeply, with losses [...]
Out-of-depth traders among reasons for the seriousness of last year’s sterling flash crash January 13, 2017 The bank for central banks has today pointed the finger at inexperienced traders as one of the causes of last October's sterling flash crash. On 7 October last year, sterling plummeted around nine per cent against the US dollar in the early hours of trading in Asia, although it bounced part way back again quickly [...]