Brent crude dips below $55 a barrel on a strong dollar and growing fears that supply cut efforts won’t be effective January 10, 2017 Oil prices fell more than two per cent today to their lowest level in almost a month, taking global benchmark Brent crude back below the $55 a barrel mark. Brent fell 2.4 per cent, or $1.29, to $53.65 a barrel in late evening London time. West Texas Intermediate crude, meanwhile, was testing $50 a barrel – [...]
Brexit uncertainty could drag on Europe’s economy says the World Bank as it forecasts a big slowdown in the UK economy January 10, 2017 Brexit uncertainty could drag down growth prospects across Europe according to the World Bank, as it forecasts a sharp slowdown in UK growth this year. UK GDP growth is predicted to fall from two per cent last year to 1.2 per cent in 2017, the World Bank’s twice-yearly Global Economic Prospects report has found. In [...]
Global sovereign default risk to increase as credit rating downgrades to outnumber upgrades in 2017 says S&P January 10, 2017 The risk of governments around the world defaulting on their debt is set to increase over the course of 2017 – although Europe’s sovereigns are expected to improve for the first time since the financial crisis, according to an influential ratings agency. Negative outlooks outnumber positive outlooks on sovereign credit ratings, which aim to measure [...]
The FTSE reaches another record high as sterling continues to slide after Theresa May’s single market comments January 10, 2017 The FTSE reached yet another record high this morning as sterling continued to fall, as comments by the Prime Minister over the weekend indicating that remaining within the single market will not be a priority during Brexit negotiations continued to take their toll. The FTSE 100 rose to a peak of 7,261.16 at the start of trading, [...]
US fine will let RBS turn page on horror decade January 10, 2017 During the 2008-2009 banking crisis the UK government had to fork out a total of £115bn to rescue Lloyds Banking Group and RBS from imminent collapse, making the taxpayer a shareholder in both. Now a new milestone has been reached: the government is no longer the biggest stakeholder in Lloyds Banking Group, after it cut [...]
Should we rule out a trade war between China and the US? January 10, 2017 Andy Rothman, investment strategist at Matthews Asia, says Yes. Donald Trump is very unlikely to implement the 45 per cent across-the-board tariff on imports from China that he proposed in an interview last year. US law permits the President to make only an emergency declaration of 15 per cent tariffs for up to five months, and [...]
With the oil price higher, a credible central bank and warmer relations with the US, Russia’s stock market and the rouble could rise even further this year January 10, 2017 Since Donald Trump’s election, investors have embraced his tax-cutting, regulation-ripping agenda, and have been resolute in backing perceived winners and dumping losers. Developed markets are in; emerging ones are out – the obstinate tycoon must be pleased. Since 9 November, the promise of higher fiscal spending in the US has raised bond yields, and caused the [...]
Theresa May’s “shared society” slogan: Another excuse for more state, less Brexit January 10, 2017 I read Theresa May’s article about the “shared society” – assuming it was she who wrote it, and not her shadowy acolytes – with interest. It is always good to know what underlies our politicians’ thinking. But it is a disappointing read, a virtue-signalling undergraduate essay. It begins with the assertion, shared with most commentators, [...]
Prime Minister Theresa May blames the sinking pound on media reports of a looming “hard Brexit” January 10, 2017 Theresa May has blamed the fall in sterling on press reports that she is planning a so-called hard Brexit. The pound fell to its lowest level against the dollar since October yesterday, after the Prime Minister heavily implied the UK will not stay in the Single Market after Brexit. Sterling dropped from $1.229 at the [...]
London job placements reach 10-month high as concerns grow over immigration skills shortages after Brexit January 10, 2017 Demand for workers in London has reached a 10-month high as vacancies in the capital increase at the quickest pace since February – but concern about Brexit controls on freedom of movement has led to calls for a more open policy on immigration. Recruiters found that permanent placements of workers with companies grew for the second month [...]