Americans doubt economic recovery September 25, 2013 In a new Bloomberg poll 44 per cent of Americans said that they expect the the economy to remain the same, while 28 per cent expect the economy to decline. America's lacklustre growth average of two per cent since the end of the recession in 2009 compares poorly to the 50-year average of three per [...]
Bank of England plays down housing bubble fears – but abnormalities in London present September 25, 2013 The Bank of England's Financial Policy Committee (FPC) has denied the existence of a housing bubble at present – but motions that it will remain "vigilant to potential emerging vulnerabilities" (release). While the FPC sees no immediate troubles with the housing market as a whole, it does highlight regional variability. Mortgage approvals in July were [...]
BlackRock study highlights pain of QE for insurers September 25, 2013 A study by asset management firm BlackRock has found that uncertainty around Quantitative Easing (QE) is "hurting insurers' income streams and driving them into riskier assets". 73 per cent of insurers say that low yields are largest driver of change for industry, whilst 80 per cent say that change is needed to produce adequate shareholder [...]
Greece and Ireland make progress as deficit rises in Italy September 25, 2013 Greece and Ireland have had significant success in reducing their budget deficits whilst Portugal and Italy have both seen their deficits widen, according to a note from Capital Economics. A reduction in interest payments and a transfer of profits on the ECB's holding of Greek government bonds lead to the Greece's deficit coming in below [...]
Debt agency contemplate change in index for index-linked bonds September 25, 2013 Britain's debt agency the Debt Management Office (DMO) has said that it has not dismissed the option of tying future index-linked bonds to consumer price inflation (CPI), rather than the usually higher rate of retail price inflation (RPI). The DMO has, until now, been cautious over multiple changes to the index used; another index was [...]
Retail sales grow at fastest pace since June 2012 September 25, 2013 UK retail sales have grown at their fastest pace in 15 months, according to new data from the CBI. Their headline index of retail transactions grew from 27 to 34, despite forecasts of a drop to 24 in the year to September. More details and analysis on the liveblog.
Fastest retail sales rise in 15 months suggests higher GDP growth in third quarter September 25, 2013 UK retail sales are now growing at their fastest pace in 15 months in the year to September, according to the CBI. That's their third consecutive months of gains. The headline CBI distributive trades survey number has risen from 27 to 34. Analysts had been expecting a fall to 24. Now retail sales are expected [...]
PPI claims costs banks nearly £12bn as FCA finds “significant room for improvement” in complaint handling September 25, 2013 Regulator the Financial Conduct Authority (FCA) has announced that total redress paid out now stands at nearly £12bn. A review by the FCA has looked into the complaints handling of 18 medium and small sized firms. The FCA has found that of those 18 firms, 12 have "serious problems with complaint handling decisions and communications [...]
UK becomes more attractive place to invest as foreign ownership of shares passes 50 per cent September 25, 2013 (ONS) UK share ownership has marginally increased to 10.7 per cent representing improvement from the record lows of 2010. The UK stock-market was valued at £1,756.3bn down from £1,777.5bn at the end of 2010. The UK however remains attractive to foreign investors with rest of the world ownership standing at 53.2 per cent up significantly [...]
Trouble ahead for Tesco as JP Morgan downgrades supermarket September 25, 2013 Tesco have been downgraded to underweight by J.P. Morgan. The supermarket is expected to underpeform due to structural changes in the UK food industry which may have a particularly damaging effect on Tesco. According to JP Morgan's Jaime Vazquez: In our view, pricing architecture is an industry problem, but is of most concern to Tesco [...]