Pound falls back below $1.25 after earlier rising on Juncker’s Brexit comments September 20, 2019 The sterling has fallen back below the $1.25 barrier despite rising earlier today on hopes of a breakthrough in Brexit negotiations. The pound has fallen by 0.34 per cent to 1.248 on the back of a strong dollar, which in turn weakens the pound. The fall has undone some of the pound’s gains from yesterday [...]
The UK faces a bipolar economic outlook September 20, 2019 The fact that the UK’s economic prospects appear both bipolar and nebulous is a measure of the unique period that we are in. While Boris Johnson began his premiership in high energy, with the strong conviction that Britain would exit the EU by 31 October, this momentum has quickly evaporated. Earlier this month, MPs voted [...]
Trump says he won’t fire Fed chair Powell (because he, er, can’t) September 19, 2019 US President Donald Trump has assured Federal Reserve chairman Jay Powell that his job is safe, even though he is “not thrilled” with the central bank’s actions. Read more: Blackrock says Federal Reserve cut should have been bolder “It’s safe, yeah, it’s safe. I mean, sure, why not?” Trump told Fox News in an interview [...]
No-deal Brexit could knock three per cent off UK growth, says OECD September 19, 2019 A no-deal Brexit could knock up to three per cent off British growth by 2022 and push the economy into recession next year, the OECD said today. Read more: UK economy on course to stagnate in the third quarter, says Bank of England governor The warning came as the intergovernmental economic organisation slashed its growth [...]
Blackrock says Federal Reserve rate cut should have been ‘bolder’ September 19, 2019 The world’s biggest investment firm Blackrock has criticised the Federal Reserve’s decision to cut interest rates by one notch, saying it “missed an opportunity for a bolder stance”. Read more: US Federal Reserve cuts interest rates by a quarter point Rick Rieder, chief investment officer of global fixed income at Blackrock, which manages $6.8 trillion [...]
UK retail sales unexpectedly fall in August September 19, 2019 UK retail sales fell in August as British shoppers bought fewer goods than in July, defying expectations of zero growth in a worrying sign for the UK economy. Read more: Cheaper computer games drag down UK inflation to three-year low The quantity of goods bought in August fell by 0.2 per cent month on month [...]
Further education £1bn worse off than 2010 despite higher spending, says report September 19, 2019 Further education colleges and sixth forms will be £1bn short of what they would need to fully reverse cuts since 2010 despite extra government money, the Institute for Fiscal Studies (IFS) said today. Yet the leading economic think tank found that the extra money pledged by chancellor Sajid Javid to schools will “just about” reverse [...]
Bank of England holds interest rates at 0.75 per cent and warns over Brexit delay September 19, 2019 The Bank of England has kept interest rates on hold at 0.75 per cent and warned of the effects of another Brexit delay on the economy. Read more: US Federal Reserve cuts interest rates by a quarter point The unanimous decision by the Bank’s monetary policy committee (MPC) came despite the US Federal Reserve lowering [...]
US Federal Reserve cuts interest rates by a quarter point September 18, 2019 The US Federal Reserve has cut interest rates for the second meeting in a row amid concerns about a global economic slowdown, in a move which was largely expected by economists. The central bank lowered its main federal funds target rate by 25 basis points (0.25 percentage points) to between 1.75 and two per cent, [...]
Fed injects over $100bn after key borrowing rate hits all-time high September 18, 2019 Pressure on a crucial US money market has eased after the Federal Reserve injected $75bn (£60bn) following a spike in short-term borrowing rates to record highs. Read more: Donald Trump demands ‘boneheads’ at Fed slash rates to zero Borrowing costs in the repurchasing – or repo – market soared to as high as 10 per [...]