McDonnell’s profligacy will clash with reality November 21, 2016 Philip Hammond will treat us all to his first fiscal event on Wednesday, as he stands up to deliver a hotly anticipated Autumn Statement. Actually, that may be overdoing it. Let's just call it anticipated. After all, Hammond is no George Osborne. The latter was famed for using such set-piece occasions as an exercise in power-building, [...]
Asset managers must adapt to serve investors in an age of disruption November 21, 2016 Today's investors and their advisers face a torrent of change from all quarters. Political, economic and regulatory turbulence is matched only by the speed at which technology is transforming business models, choices and decision-making. The low interest rate and low growth environment is creating real challenges for institutional and retail investors. These challenges form the central [...]
Have investors jumped the gun in thinking that the era of low inflation is now over? November 21, 2016 Jason Hollands, managing director at Tilney Bestinvest, says Yes. Deep tax cuts, looser banking regulation, massive spending on infrastructure and the military, alongside higher tariffs on imports and tighter immigration restrictions – Donald Trump’s economic policies are inherently inflationary for the US economy, especially against a background of low unemployment. Global bond markets have reacted [...]
Tech-tastic: May pledges billions to support tech champions as she fleshes out industrial strategy November 21, 2016 Prime Minister Theresa May will reveal details of her government’s flagship industrial strategy at a conference of business leaders today, promising billions in extra funding and potential tax breaks for a range of sectors. While insisting her plan is “not about picking winners”, she will identify several technology-related areas in the UK that the government [...]
UK government borrowing could overshoot forecasts by £7.5bn this year owing to Brexit and reduced tax revenues November 20, 2016 UK government borrowing could overshoot forecasts by as much as £7.5bn this year, as reduced tax revenues and the vote to quit the European Union threaten to leave chancellor Philip Hammond with less room for manoeuvre in his first Autumn Statement on Wednesday. The Office for Budget Responsibility could be in line to slash its [...]
Consensus of economic forecasts shows inflation is back, says chancellor Philip Hammond November 20, 2016 Chancellor Philip Hammond has declared: "It's clear that inflation is back." Speaking on ITV's Peston on Sunday, Hammond said: "We have to wait and see what inflation figures look like when we get the OBR's report on Wednesday, but I think looking at the consensus of forecasts, it's clear that inflation is back." "That is hopefully a [...]
Lo-sers: Sterling and the FTSE 100 both fell today as the dollar strengthened November 18, 2016 It's been a quiet day on the markets – but that didn't stop the pound and the FTSE 100 both losing ground as the dollar continued to climb. Sterling was 0.7 per cent lower at $1.2323 in late afternoon trading, and 0.3 per cent lower against the euro at €1.1647. To be fair, that was an improvement [...]
Nasdaq just hit a a record high November 18, 2016 The Nasdaq index just hit a new record high. The index rose 0.2 per cent to at 5,342.09 in the minutes of opening trade, moving past its previous intraday high of 5,342.88 on 22 September. The US stocks are also near record highs following the election of Donald Trump to become the next President of the USA. The [...]
Brent crude and West Texas Intermediate crude oil prices rebound as dollar surge weakens and Opec hopes revive November 18, 2016 Oil prices rebounded this morning after a surge in the US dollar weighed on the black stuff and took Brent crude below $46 and US sweet crude under $45. Brent crude flat at $46.49 a barrel this morning, lifting from a low of $45.78, as optimism that the Organisation of the Petroleum Exporting Countries (Opec) managed [...]
Ben Broadbent: The weak pound and higher import prices will dampen wage growth – but the Bank of England can fix it November 18, 2016 UK workers' wages are at risk as a result of weaker sterling, the Bank of England's deputy governor warned today. In a speech at the Society of Business Economists' annual conference, Ben Broadbent said the pound's fall against the dollar and the euro meant UK consumers face a long period of higher import prices. Without a [...]