Banks blame Draghi for their dwindling profits October 18, 2016 There is no end in sight for Europe's squeezed banking sector as the continent's top lenders prepare to feel the pain of negative interest rates for at least the next six months. Nearly every bank in the Eurozone said their profits had been hit as a result of the European Central Bank (ECB)'s historically low [...]
Inflation surges to two-year high as economists warn of huge price hikes October 18, 2016 Prices are rising at their fastest pace in nearly two years as sterling's dramatic post-referendum demise looks set to bite consumers over the coming months. Inflation came in at one per cent in September on the consumer prices index (CPI), the Office for National Statistics (ONS) declared this morning – a big leap from the 0.6 per [...]
Ryanair warns sterling decline will hit full year profits October 18, 2016 Shares in budget airline Ryanair dipped today after it warned its full year profits are likely to be hit by the recent declines in sterling following June's Brexit vote. The pound plunged to record lows in the wake of the EU referendum result, and has struggled to recoup its losses since. The carrier reduced its full year [...]
Nick Clegg attacked for claiming Brexit will cause food prices to rise October 18, 2016 Nick Clegg faced a furious backlash yesterday evening as he was rounded on for claiming food prices would jump after the UK leaves the EU. As a new report reveals the creeping cost of the EU customs union and inflation figures due this morning are set to show price rises running at their highest level [...]
The EU’s maddening, opaque, confusing and illogical import tariffs must be scrapped October 18, 2016 As you sit down to read City A.M. today over a perfectly smooth coffee from one of London’s ubiquitous coffee shops, you’re probably well aware that we don’t grow coffee in this country, never will and don’t care either. So why does coffee need seven different types of import tariffs set by the EU? Today we [...]
No, Nick Clegg: A true liberal knows Brexit should slash UK food prices October 17, 2016 So Brexit means more expensive breakfast! Or so Nick Clegg believes. Hanging onto the coattails of last week’s Unilever-Tesco row over who would bear the cost of a falling pound raising food import prices (so-called Marmite-gate), the former Deputy Prime Minister now warns us that milk and cheese will be more expensive as a result [...]
UK tech investors are incredibly happy about Softbank’s $100bn fund October 17, 2016 Venture capital investors in London have welcomed the arrival of the world’s biggest ever tech investment fund and the decision to locate it in the capital. Softbank unveiled plans last week to create a huge new fund for investing in technology companies along with the Saudi Arabian sovereign wealth fund to the tune of as much as $100bn [...]
Sterling steady as rift opens between Philip Hammond and hard Brexiters October 17, 2016 The weekend may have brought some welcome respite for currency traders after a frantic few weeks of selling and shorting, but the break still hasn't done sterling any good. It's as-you-were on the money markets today with the pound falling shy of $1.22 against the US dollar and €1.11 against the single currency. At lunchtime one pound [...]
Autumn Statement 2016: Could higher borrowing costs upset Philip Hammond’s plans for an infrastructure spending spree? October 17, 2016 Interest rates for the UK government are rising at one of their fastest rates in nearly two decades as chancellor Philip Hammond prepares to unleash a multi-billion pound spending spree in his first Autumn Statement in five weeks' time. Borrowing costs for Hammond, as measured by the yield on the benchmark 10-year government bond, have surged in [...]
Markets riding high for now, but vulnerable to “small trigger”, warns Citi October 17, 2016 Equity markets could be a “small trigger” away from crashing down from current near-high levels, a note from Citigroup has warned today. Researchers argued that the world is currently not an uncertain place, but that with certainty comes complacency, “and with complacency comes risk”. Read more: Will the pound's weakness continue to drive the FTSE 100? [...]