Oil prices on a slick-ery slope: Brent crude slips through $42 per barrel mark and into bear market July 29, 2016 Just when you thought the price of a barrel of oil couldn't tumble any further, it goes and does this. Brent crude has dropped past the $42 mark today and into bear territory, as the fresh fall places the price hovering around 20 per cent lower than it was back in June. At time of writing, [...]
This one chart shows how bad real wage growth in the UK really is July 29, 2016 Since the downturn wage growth in the UK has been sluggish, to say the least. But now figures put together for City A.M. by Statista using figures from the TUC has shown quite how disappointing growth has been: between 2007 and 2015, wages have fallen 10.4 per cent in real terms. The only OECD country [...]
Steady on: Bank of Japan holds interest rates at negative 0.1 per cent but introduces other stimulus measures July 29, 2016 The Bank of Japan today opted to hold interest rates, although it did turn to other stimulus measures. The Japanese central bank voted 7-2 to stick with its minus 0.1 per cent benchmark rate. Japan first cut its rate below the zero mark in January, in a move which pleasantly surprised many of the global markets. However, [...]
Hinkley Point C: Prioritising the politically sexy over the economically rational is a waste of money July 29, 2016 The new nuclear plant at Hinkley Point, which has finally been approved by EDF’s board, will be the most expensive power station anywhere in the world. Beset by delays (first proposed in 2006, it was meant to come online in 2017), it won’t be operational until 2025 and EDF will still receive its enormous £30bn [...]
Nuclear fallout: Government cools on Hinkley Point after EDF approval July 29, 2016 A decision by the board of French energy giant EDF to approve construction of two new nuclear reactors at Hinkley Point in Somerset was given a lukewarm response by Theresa May’s government last night. In a shock move, business and energy secretary Greg Clark said the government will now review the details and make a decision [...]
Anglo American jumps as its losses narrow in the first half July 28, 2016 Anglo American shares closed up 5.48 per cent to 843p this afternoon, after the embattled miner's losses narrowed in the first half. The FTSE 100-listed firm posted a net loss of $813 (£617m) in the six months to 30 June, more than two thirds less than the $3bn loss it recorded the same time a year ago. Underlying earnings fell [...]
Watchdog in blistering attack on IMF’s role in Eurozone bailouts July 28, 2016 The International Monetary Fund (IMF) has been slammed by its own watchdog for a string of failures in its handling of the Eurozone crisis. The IMF's Independent Evaluation Offices (IEO), which watches over the global rescue fund, said the body found itself in an unprecedented situation, but failed to act with the "agility", "accountability and [...]
Advanced economies stuck in trap of low growth and rising populism July 28, 2016 The cycle of weak growth and political instability affecting the developed world was laid bare in a new report into the state of the world's largest economies, published this morning. Economies are trapped in a spiral of weak growth and growing debt while politicians fail to grasp the problems, leading to a political backlash and a clamour [...]
Should Philip Hammond cut VAT to support post-referendum economy? July 28, 2016 Theresa May and Philip Hammond have promised to "reset" the government's spending plans in the wake of the EU referendum. George Osborne's goal to run a budget surplus has been abandoned while rumours about a massive injection of government spending are gathering pace. In 2008, as the Labour government scrambled to deal with the start of the slowdown, [...]
Before the bell: What you need to know before the US market open July 28, 2016 Last night the US Federal Reserve signalled the way to an interest rate rise before the US Presidential Election and investors are busy digesting the flood of earnings reports. Here's what you need to know before the US market open at 2:30pm. The pre-market is pointing lower ahead of the open but looks to be broadly [...]