With or without a Santa Rally, the FTSE 100 looks a sick man compared to its peers December 18, 2017 Over the past 25 years global markets have become accustomed to what is affectionately known as the Santa Rally in the final weeks before Christmas. This year, however, the FTSE 100 appears unlikely to have its spirits lifted by Christmas joy. In 18 of the past 25 years, the FTSE 100 index has rallied by [...]
Whether it has peaked or not, we’re playing a waiting game with inflation December 14, 2017 On Tuesday, official data showed Consumer Price Inflation crept up slightly to 3.1 per cent in November. It was enough to oblige the Bank of England Governor Mark Carney to write a letter to the Chancellor, an event not unlike a naughty schoolboy writing a letter of apology to the headmaster. Mr Carney wrote to Philip [...]
Beware Bitcoin’s bite – why crypto-currency futures might make a risky investment deadly December 13, 2017 Deutsche Bank has raised serious concerns about the risk posed to the global financial system by Bitcoin. It’s not the first to red flag the crypto-currency and warn investors that it is a potentially dangerous financial instrument to get involved with. Others have warned about the dangers of a Bitcoin bubble. European Central bankers have [...]
Saudi sell-off puts a lot at stake December 12, 2017 Oil is getting more expensive. The price of crude recently jumped after OPEC agreed to extend the production initially agreed in November 2016. Having fallen to $29.64 dpb (dollars per barrel) in January 2016, it now looks settled at round about $50-60. It’s vital for the global economy that the price of oil settle. Since [...]
Sterling set to sail through choppy waters in 2018 December 11, 2017 At the end of November, sterling hit a two-month high against both the Dollar and the Euro on the news that Britain may have finally agreed its divorce bill from the European Union (EU). But within days the thorny issue of what will happen to the Irish border after Brexit had replaced the money question [...]
The Irish border issue tells us what the British government wants from Brexit December 7, 2017 You have to feel a bit sorry for Mrs May. By Monday lunchtime she must have felt convinced she had achieved something that had appeared to be impossible, by settling the Irish border question. It seems almost unthinkable that she would have struck a deal that saw regulatory alignment between the Republic of Ireland and [...]
Deal or no deal, Brexit trade talks will take years to complete December 6, 2017 There’s a funny history lesson that those negotiating Britain’s exit from the European Union (EU) should at least be aware of. It’s this: negotiations to join or leave the EU can take a very long time. And member states have a veto on whether another country joins – or leaves – the EU club. We [...]
Would a Labour government be as bad for Britain as Brexit? Morgan Stanley thinks so December 5, 2017 On Friday morning, Labour leader Jeremy Corbyn came out fighting against one of the world’s largest banks. Why? Earlier in the week, the bank in question, Morgan Stanley, had warned the chance of a snap UK election by the Autumn of next year was currently above 60 per cent. But the bank also warned that [...]
Bitcoin bubble grows as banks fall flat December 1, 2017 Bitcoin continues to defy expectation. It recently reached and passed a milestone, that of the $10,000 mark, an incredible feat considering it was worth less than £1,000 at the start of 2017. Nobody can quite agree as to why it’s so strong, but a parallel to its soar in value is its huge popularity in [...]
The Bank of England has just given a coded warning about the danger posed by a no-deal Brexit. It’s terrifying November 30, 2017 On Tuesday, the Bank of England released the details of its latest banking industry stress tests. The results made for some soothing sounding headlines – the UK financial system is strong enough to withstand a "disorderly Brexit". In other words, Britain’s banking system can withstand leaving the European Union (EU) without a trade deal. While [...]
