Monetary policy is too crucial to leave in Labour’s meddling hands April 16, 2019 Even by Donald Trump’s standards, it was an extremely Donald Trump thing to do. Last week, the President nominated Herman Cain for a seat on the board of the Federal Reserve, attempting to hand oversight of the world’s largest economy to a maverick gold-standard enthusiast. The nomination appears to be doomed, largely because of the [...]
You can’t blame Brexit for the British car industry’s woes April 15, 2019 Quizzed by Nick Hewer on Honda’s decision to close its Swindon plant earlier this month on BBC radio, I suggested that blaming Brexit for the demise of the Japanese auto makers factory with the loss of 3,500 jobs was not the whole story. Certainly, Brexit plays havoc with the vehicle industry’s sophisticated just-in-time supply chain. [...]
The euro falls as ECB chief Draghi delivers pessimistic verdict on Eurozone economy April 10, 2019 The European Central Bank (ECB) kept up recent tradition today when it announced it would hold interest rates at record low levels and reaffirmed that it will not raise them before the end of 2019. Read more: US threatens tariffs on $11bn of EU goods ECB boss Mario Draghi struck a more pessimistic tone than [...]
Jeremy Corbyn and Alexandria Ocasio-Cortez love Modern Monetary Theory, but it is just the magic money tree again April 10, 2019 As the Brexit process unfolds, the possibility of a Corbyn government has become much more tangible. Last month, John McDonnell, the shadow chancellor, wrote to the Treasury to say that in power he would require them to “widen the range of economic theories and approaches in which its officials and those in the rest of [...]
Manufacturers urge May to revoke Article 50 if Brexit deal cannot be secured April 7, 2019 Manufacturers have urged Prime Minister Theresa May to revoke Article 50 is she cannot secure a Brexit agreement this week amid growing fears the UK could crash out of the EU without a deal. In an open letter to May and Labour leader Jeremy Corbyn, trade body Make UK said the industry had already been [...]
Brexit uncertainty has cost the UK economy £66bn, says S&P April 4, 2019 Brexit has cost the UK economy £66bn in lost growth, according to ratings agency S&P. Had the UK voted to remain in the EU in 2016s referendum the economy would have been three per cent larger by the end of 2018, the group’s report said. Read more: Brexit delay wins MPs' support by a margin [...]
The European Union is on the backfoot, but few seem to notice April 2, 2019 There is a very bad habit that many of our broadcasters have of focusing on what might befall us. It reminds me of Frankie Howerd in Up Pompeii bemoaning “woe is me, woe is me” – as if he might warn his master against leaving the Empire without a deal. It would be refreshing were there [...]
Eurozone economic sentiment dips as UK confidence grows March 28, 2019 Economic sentiment in the European Union and the eurozone fell this month, while confidence in the UK jumped 1.6 points. Sentiment in the euro area dropped by 0.7 points to 105.5 and in the EU sentiment fell by 0.4 points to 105, according to the European Commission’s latest business and consumer survey. Read more: Draghi [...]
Asian stocks slump amid fears of global economic slowdown March 25, 2019 Fears of a global economic slowdown took its toll on Asian markets overnight, as stocks slumped amid growing investor caution. Read more: Fed slows balance sheet reduction and holds line on rates Japan's benchmark Nikkei 225 index tumbled 3.1 per cent, as trading opened on Monday after a week of unrest across global markets. Hong [...]
KPMG downgrades UK economic growth forecast for 2019 due to Brexit March 25, 2019 Audit firm KPMG has downgraded its short term expectations for the UK economy due to the lack of clarity around Brexit and global headwinds. The firm forecasts that the UK economy will expand by 1.2 per cent in 2019, assuming that a Brexit deal is reached. The predictions are included in KPMG’s latest quarterly Economic [...]