Central banks need to steady their course despite choppy weather March 22, 2023 Much ado about nothing? Hardly. The loss of Credit Suisse, and the wipeout of Coco bond holders, will have consequences for years to come – but for now at least it appears as if the guardrails are holding. Attention will now inevitably turn to the Federal Reserve and, the day after, the Bank of England. [...]
Nearly every sector of UK economy powers away from feared recession March 22, 2023 Nearly every sector of the UK economy is powering away from a recession that was much-tipped at the turn of the year, a new survey out today shows. Some 11 of the 14 sectors monitored by Lloyds Bank are producing more than they did a month ago, the highest number in nearly a year. The [...]
Bank of England and Fed to ignore Credit Suisse chaos and hike interest rates this week March 21, 2023 The Bank of England and US Federal Reserve are this week expected to ignore the on-going financial market chaos which resulted in Credit Suisse being pawned off in a shotgun sale and hike interest rates. City analysts have tipped Fed Chair Jerome Powell and Bank Governor Andrew Bailey to prioritise fighting inflation instead of shielding [...]
Europe’s banks post strong gains as Janet Yellen is set to signal further support for US banks March 21, 2023 European Bank stocks continued to recover today as US Treasury Secretary Janet Yellen is set to signal further support for regional US lenders. Europe’s largest banks were all firmly in the green around midday. BNP Paribas rose 3.9 per cent, Deutsche Bank was up 5.2 per cent, while UniCredit and Santander climbed 6.3 per cent [...]
Hunt must commit Treasury and BoE to review of rate rise impact, Labour shadow City minister urges March 21, 2023 Chancellor Jeremy Hunt has been urged to commit the Treasury and the Bank of England to a review of “sharp interest rate rises” in light of the ongoing banking turmoil. Shockwaves have rocked the financial sector in the past weeks with the collapse of the US arm of tech bank SVB – plus the buyout [...]
European markets to open higher after Credit Suisse drama as investors split on central bank rate hikes March 21, 2023 European markets are set to open higher on Tuesday as investors bet that banking turmoil will put a halt to central banks’ battle to contain inflation The FTSE and Frankfurt’s DAX were called up 0.59 per cent while the CAC in Paris was called up 0.47 per cent. After the drama of the past few [...]
Banking crisis and Fed’s credit line: how does it work and how concerned should we be? March 20, 2023 Central banks around the world announced last night that they were taking steps to improve access to liquidity in the financial system. In a coordinated move reminiscent of Covid in 2020 and the financial crisis in 2008, central banks in the US, the eurozone, Britain, Japan and Canada announced new measures to calm financial markets. [...]
Why does the Bank of England (secretly) want to sack you? To hose down the inflation fire March 14, 2023 Whisper it very, very softly, but the Bank of England (secretly) is trying to force you out of the job. That’s right. Governor Andrew Bailey wants to toss you to the wolves in the name of the fight against inflation. That’s overegging it. No one is directly trying to make someone else unemployed. A kernel [...]
UK dodges recession but economy still poised to be below pre-Covid-19 size until end of 2024, BCC forecast March 9, 2023 The UK is poised to avoid a recession this year but suffer a slow burning economic slump that will leave GDP below its pre-pandemic level until the final months of next year, new forecasts out late last night claim. Stronger than expected household spending despite sky high inflation plaguing families’ finances will put the economy [...]
Bank of England risks tipping UK economy into recession with further interest rate hikes, MPC’s Dhingra warns March 8, 2023 The Bank of England risks tipping the UK economy into recession if it raises interest rates too aggressively and worsening the cost of living crisis, a top official said today. Swati Dhingra, an external member of the Bank of England rate setting monetary policy committee (MPC), warned “overtightening poses a more material risk at this [...]