UK commercial property remains at risk of further losses says Bank of England December 6, 2016 The UK’s commercial real estate sector remains at risk of further losses according to the Bank of England (BoE), as the vote to leave the European Union continues to leave its mark. The BoE’s Financial Policy Committee (FPC) said “there was the risk of further adjustment in the sector” which could create knock-on risks for [...]
Marcus Brookes: How we’ve prepared for the return of inflation December 6, 2016 | City Talk Inflation was already on the rise. Now I expect the policies likely to follow in Donald Trump’s presidency will pile on further price pressure. The deflating effect of QE We have been changing our portfolios over the last year to reflect our view that inflation may be returning to the financial system. Yes, quantitative easing, [...]
Eurozone GDP stays steady on 0.3 per cent in third quarter December 6, 2016 The Eurozone economy grew by 0.3 per cent in the period after the UK's Brexit vote, as some of Europe's most vulnerable economies accelerated slightly. Greece and Portugal both grew by 0.8 per cent in the third quarter, with the former doubling its growth rate from the second quarter. Portugal's growth rate accelerated even faster, [...]
Bank of England: Households will struggle to pay debts if interest rates rise December 6, 2016 UK households could struggle to meet debt repayments if interest rates rise, according to the Bank of England, as it confirmed the conclusions of last week's financial stability report. The Bank said "risk of a further sharp adjustment in fixed income markets remained” owing to the global economic environment. The minutes of the bank's Financial Policy Committee [...]
No-go zone: With Matteo Renzi set to resign following his defeat in the Italian referendum, should investors stay away from the Eurozone? December 6, 2016 Italy’s referendum will not weaken the European project as much as critics hope, and Trump could help equities, says Will Railton "The vote looks to me to be more about the euro than constitutional change”, tweeted Nigel Farage shortly after the Italian polls closed on Sunday night. Eurosceptics are heralding the resounding result (a 59.1 [...]
Italy’s referendum has started the clock ticking on the collapse of Europe December 6, 2016 There are real advantages to playing the dumb American. As much of the world thinks no one born on my continent could ever know anything about their country, I am at a perpetual advantage. Just over a week ago I found myself in Milan, explaining to investors the reasons for the Trump phenomenon. Late in [...]
Those who benefit from new infrastructure should pay for it December 6, 2016 To many people’s relief, there were not many big ideas in Philip Hammond’s Autumn Statement last month. In so far as there was anything new, it was the widely-trailed extra investment in innovation, infrastructure and housing. The justification for spending money on these things is that it will raise productivity and growth. There is no question [...]
Brent crude oil just broke $55 for the first time since July 2015 December 5, 2016 Brent crude oil shot above $55 per barrel today as oil traders continued to celebrate Opec's agreement, after months of in-fighting, to put a cap on production. Global benchmark Brent crude rose as high as $55.33 per barrel in late morning trading, up more than 1.4 per cent, though it dipped 0.3 per cent to $54.30 by the [...]
Hefty bill from counterfeiting and piracy costs EU £71bn and 790,000 jobs each year December 5, 2016 Counterfeit goods and piracy cost the EU economy a whopping £71bn every year, according to research from the European Union’s intellectual property office. More than 7.4 per cent of sales, totalling £40bn, across nine sectors are lost in the 28-country bloc due to fake products including handbags, toys, pharmaceuticals and alcohol, as well as music [...]
Mark Carney takes aim at so-called stateless companies, as he jumps to defend Bank of England policies December 5, 2016 The Bank of England governor has this evening launched an attack on so-called "stateless corporations", in a wide-ranging speech aimed at creating a fairer economy and tackling inequality. Speaking at Liverpool John Moores University, Mark Carney called for stronger measures to confront inequality in order to stop more people turning their back on [...]