Turkish lira resumes its sell-off after brief rally on tightened liquidity from central bank January 13, 2017 The Turkish lira has suffered a fresh sell-off after briefly rallying against the dollar from record lows when the country’s central bank moved to tighten liquidity. The US dollar rose against the lira on Friday by over 1.5 per cent to over 3.8272 Turkish lira. The dollar had strengthened to record highs of 3.9415 Turkish [...]
Tight labour market should not make Bank of England raise rates automatically says MPC economist January 13, 2017 A tightening labour market should not necessarily prompt the Bank of England (BoE) to raise interest rates, according to a member of the Bank’s rate-setting body. “Monetary policy should not be set in a way that seeks to rule out sub-5% unemployment over time,” Michael Saunders, an external member of the Bank’s Monetary Policy Committee [...]
Why banks could actually prove a less stressful part of your portfolio January 13, 2017 | City Talk Market consensus tells us the banking sector remains a risky place for investors to put their money. After all, the prevailing wisdom runs, banks are cyclical, poorly capitalised and in lousy shape for the next downturn, as and when it comes. Of course, as contrarian investors, we believe market consensus and prevailing wisdom primarily exist [...]
Editor’s notes: Carney can see what EU officials refuse to: that they need the City January 13, 2017 Mark Carney isn’t the kind of man to lose his temper in public. Perhaps he isn’t even the kind of man to lose his temper at all. Still, if he was ever to come close to doing so it may well have been at this week’s Treasury Select Committee hearing, where he once again came up [...]
Why the solution to India’s energy challenge lies in coal power plants January 13, 2017 India's huge development and energy challenges mean there are economic and development arguments for investing in new coal power plants for the foreseeable future. More than 240m people in India have no electricity, and even for those who have, the quality is far below standards acceptable in developed countries. India’s residential electricity consumption lags behind [...]
Gaps in net household incomes are falling, according to the IFS January 13, 2017 Inequality in net household incomes has declined over the last 20 years according to a new report from the Institute for Fiscal Studies – the second set of figures this week to reveal a narrowing gap between Brits at the top and bottom of the scale. Published this morning, the IFS numbers record household incomes calculated [...]
London set for biggest IPO in six years as warehouse giant plots 2017 float January 12, 2017 London is set for its biggest float in more than half a decade, City A.M. can reveal. Private equity giant Blackstone is aiming to list warehouse business Logicor, which is valued at around €13bn (£11bn), on the London Stock Exchange in 2017. Sources told City A.M. the initial public offering (IPO) could come in the first [...]
Eurozone industrial production surge gives surprise growth picture January 12, 2017 Industrial production has surged in the Eurozone, setting the scene for an increase in growth in the region. Eurozone industrial production rose to 1.5 per cent in November, up from a meagre 0.1 per cent in October, according to the European Commission. While industrial production figures can be volatile, the acceleration in industrial growth will [...]
Significant rise in inflation amid a firming recovery predicted by European Central Bank January 12, 2017 Europe's economy is recovering "at a moderate but firming pace" but headline inflation will rise "significantly" in the coming months, according to the monetary policymakers at the European Central Bank (ECB). The ECB also said Brexit uncertainty and the election of Donald Trump presented risks to the EU economy, while "political uncertainty remained high". In minutes from [...]
Rising sterling pushes down FTSE on big day of results for retailers January 12, 2017 A strengthening pound pushed the FTSE 100 slightly down from its record opening level amid a slew of results from major retailers. The pound rose as high as $1.2317 against the US dollar as greenback continued its retreat from 14-year highs. Sterling was broadly flat against the euro in morning trading. The FTSE was broadly [...]