Monte dei Paschi shares swing wildly as bailout fails but FTSE 100 and Europe shares flat December 22, 2016 Shares in Banca Monte dei Paschi di Siena (MPS) were swinging wildly on Thursday as investors digested the news that the Italian bank is set for a government bailout. Shares were suspended after steep falls. They closed at €16.30 on Wednesday, but traded at lows of €14.71 after opening at €15.00. However, they then recovered quickly [...]
All I want for Christmas is… an ultra-hard Brexit (and nine other pro-growth policy wishes) December 22, 2016 Here is my Christmas wish list for Santa. Ten policy measures which, if implemented, would make future growth prospects truly joyous, with Christmas every day of the week. But these are also economic policy measures Santa won’t be too familiar with, as he boards his sleigh somewhere north of the Nordic economies. I don’t pretend [...]
Editor’s 2016 review: It’s been a year of momentous political change, but there’s every reason to look to the future December 22, 2016 Attempting to reflect such an extraordinary year with just a handful of our own front pages was always going to be difficult, but I thought we’d give it a go. The front page of City A.M. is (to borrow a phrase from our marketing department) the front door of our brand. The choice of splash, [...]
Does ultra-loose monetary policy work? The Treasury Committee wants to find out December 22, 2016 The Bank of England’s (BoE) post-financial crisis loose monetary policy may have had “unintended consequences”, according to the head of the Treasury Select Committee (TSC). TSC chair and Conservative MP Andrew Tyrie is set to launch a new inquiry into post-2008 central bank policy, which will investigate how effective low interest rates and accommodative instruments such [...]
Resilient British consumers grow more confident about personal finances, but see storm clouds ahead for the UK economy December 22, 2016 British consumers have ended the year on a resilient note, with confidence rising despite gloomy forecasts for the economy, according to a long-running survey. Consumer confidence increased in December by one point, driven higher by a positive attitude towards making major purchases such as furniture or white goods, says the index compiled by market research [...]
Eurozone consumer confidence reaches 20-month high December 21, 2016 Europe’s consumers appear to be slowly moving out of a long-term slump as confidence reached a 20-month high. Confidence in the Eurozone increased by 1.1 points to reach minus 5.1 for December, according to flash estimates from the European Commission. A measure below zero indicates net negative sentiment, but the score is well above the [...]
This French energy giant thinks oil could be at $10 a barrel by 2025 December 21, 2016 Oil prices could fall to as low as $10 per barrel within a decade as a 'tsunami' of threats could undo demand. That prediction comes from Engie SA’s innovation chief, Thierry Lepercq, who says that oil demand will be hit on multiple fronts. He lays out five 'tsunamis': solar power, battery storage, electric vehicles, “smart” [...]
This is what analysts expect to happen to the oil price in 2017 (spoiler: things are going to get better) December 21, 2016 It's been a turbulent year for oil markets. After bottoming out at below $27 a barrel in January, global benchmark Brent crude looks set to end the year at more than double that price, averaging at the $55 a barrel mark. Analysts believe Brent crude will have an even rosier start to 2017, when prices [...]
Long-term inflation expectations reach a two-year high of three per cent as Brits start to feel prices rise December 21, 2016 Inflation expectations have jumped to a two-year high as Brits predict it will reach three per cent in five to 10 years, according to a widely followed survey. Long-term expectations this month are up from 2.8 per cent in November, according to the poll by YouGov for Citi. This is the fifth month of increases [...]
UK government deficit rises more than expected and public sector borrowing continues to grow December 21, 2016 The UK government’s debt and budget deficit both rose in November, as borrowing came in higher than expected. The deficit rose to £12.6bn, with borrowing to fund everyday government spending accounting for £9.9bn, according to data from the Office for National Statistics. The government now owes the private sector almost £1.66 trillion, an increase of [...]