Public borrowing could overrun by £100bn over the next five years November 15, 2016 Philip Hammond could be on track to overshoot previous public borrowing forecasts by £100bn in total by 2021, a report out today has warned. PwC also found that, if the new chancellor opts to keep the status quo on spending despite June's referendum result, this year's public sector net borrowing will come in at £67bn, around £10bn [...]
The Trump-Hammond-Keynesian consensus is wrong: Higher infrastructure spending does not equal greater growth November 14, 2016 To a man with a hammer, everything looks like a nail. Or when it comes to the UK economy: to an economist who believed in fiscal stimulus in 2011, every period of time looks like an opportunity for more government spending. In the aftermath of Donald Trump’s victory last week, even his most vociferous left-leaning economic critics [...]
Donald Trump’s $1 trillion spending plan spurs global bonds sell-off as Dow reaches record highs November 14, 2016 The global bond market is undergoing a massive sell-off as investors weigh the implications of US President-elect Donald Trump’s unorthodox policy proposals. Today the yield on 30-year US Treasury bonds rose above three per cent for the first time since the start of January, owing to fears that inflation will rise once Trump’s policies take effect. [...]
The price of gold has fallen to a five-month low November 14, 2016 The price of gold fell to a five-month low in trading in New York today, as the US dollar crept higher. Prices on the New York Mercantile Exchange fell one per cent to $1,212.10 a troy ounce as investors became increasingly bullish about what will happen next. So much for treasuries, gold and the yen [...]
Equities rally again: The Dow Jones just hit another all-time high – but the FTSE 100 has fallen back November 14, 2016 The Dow Jones industrial average leaped to 18,904 points in early trading in New York today, smashing its previous record of 18,857. Meanwhile, across the pond, trading was also encouraging – although slightly less encouraging than it was earlier, after the FTSE 100 slid to 6,752 points, down from 6,811 earlier. It was still in [...]
Just when you thought it was all going to be ok, Eurozone industrial production has fallen again November 14, 2016 Eurozone industrial production fell 0.8 per cent in September after a strong 1.8 per cent rise in August, adding to a volatile 2016 so far for European industry. Denmark and Germany posted the largest individual country declines, according to the data released today by the European Union’s statistics agency. They fell 8.1 per cent and 1.9 [...]
Japan GDP growth smashes expectations, pushing the Nikkei to a nine-month high November 14, 2016 Japan’s gross domestic product (GDP) grew at an annualised rate of 2.2 per cent in the third quarter of 2016, outperforming analyst expectations of around 0.8 per cent and helping to drive the country’s stock market, the Nikkei, to a nine-month high. The GDP growth rate grew by 0.5 per cent from July to September, beating the 0.2 [...]
Iran is open for business with a post-Brexit UK November 14, 2016 Iran is officially open for business after four years in the global wilderness. Following the imposition of financial sanctions in 2012 by the US for its burgeoning nuclear weapons programme, it was almost impossible for the west to do any business with Iran. Those sanctions were lifted earlier this year after France, Germany, UK, Russia and [...]
Shelve the EU’s anti-innovation precautionary principle to turbocharge the UK’s Fourth Industrial Revolution post-Brexit November 14, 2016 Thirty years ago, Big Bang launched a wave of technological change, transforming the City’s fortunes and securing its future. Facing down vested interests and naysayers, the Thatcher government understood that championing innovation would turbo-charge Britain’s economy – and seized the day. June’s EU referendum result was also a decisive turning point. Both Remainers and Leavers [...]
My key aim as lord mayor is to promote London’s unique business and cultural offering November 14, 2016 It has been a busy few days since starting as the 689th lord mayor. After my swearing in at the ancient Silent Ceremony on Friday came the world’s biggest and oldest street pageant: the Lord Mayor’s Show. Since 1215, every newly-elected lord mayor has travelled through the City of London to Westminster to swear loyalty to the [...]