Theresa May at Davos adds another boost to the pound to send the FTSE 100 down January 19, 2017 Prime Minister Theresa May’s speech in Davos gave sterling another boost in morning trading, two days after her Brexit negotiation details pushed the pound to its biggest one-day gain since 1993. May told an audience of global business leaders and bankers post-Brexit Britain will aim to boost industry, which brings the benefits of globalisation to ordinary [...]
Hold: The ECB keeps interest rates and QE purchases steady as Mario Draghi defends loose policy from hawkish critics January 19, 2017 The European Central Bank (ECB) has kept interest rates constant and made no changes to its quantitative easing programme, despite growing pressure to remove its historically high rates of monetary stimulus. The ECB’s rate-setting governing council kept its three main interest rates at the same levels since March 2016, when they were cut further in [...]
What to watch when the European Central Bank reveals its latest monetary policy decision January 19, 2017 After Janet Yellen gave a surprisingly hawkish speech to San Francisco’s Commonwealth Club last night, today’s turn in the monetary policy spotlight belongs to Mario Draghi. The Governing Council of the European Central Bank (ECB) meets today at its Frankfurt headquarters to discuss its three interest rates (currently near zero) and its controversial asset purchase [...]
UK and Europe set for record dividend pay-outs in 2017 despite big political risk January 19, 2017 The biggest companies in the UK and Europe are set to pay out a record €315bn (£272bn) in dividends over the course of this year despite political headwinds from Brexit and multiple elections in important EU countries. Dividend pay-outs will rise by four per cent compared with the €302bn paid last year by companies in [...]
UK wages grow at fastest rate since September 2015, while unemployment rate retains 11-year low January 18, 2017 Wages grew faster than expected at the end of 2016, while unemployment stayed steady at 4.8 per cent, as the UK labour market showed little sign of any short-term Brexit effect. Weekly pay grew by an annual rate of 2.8 per cent including bonuses from September to November, according to the Office for National Statistics. [...]
US inflation breaks above two per cent for first time since 2014 January 18, 2017 Inflation in the US broke through the Federal Reserve's two per cent target in December for the first time since 2014, strengthening the case for a rise in interest rates over the coming year. Consumer prices rose by an annual rate of 2.1 per cent in December, after inflation of 1.7 per cent the month before, [...]
Sterling retreats from Theresa May’s Brexit speech-inspired highs, boosting the FTSE 100 January 18, 2017 Sterling has fallen back from its strongest one-day performance since 1993, helping to nudge the FTSE 100 back into profitable territory. The sterling spot exchange rate against the US dollar had fallen by more than 1.1 per cent at the time of publication to trade below $1.23. It had traded well above $1.24 after Prime [...]
Higher inflation boosts ECB hawks’ case for tightening ahead of monetary policy meeting January 18, 2017 Inflation in the Eurozone rose sharply in December, the European Commission has confirmed, adding further to pressure on the European Central Bank (ECB) to begin withdrawing its historically expansive monetary policy support on Thursday. Consumer prices across the bloc increased by 1.1 per cent, a steep rise from the 0.6 per cent growth recorded the [...]
Thursday will be the poorest day of the year for Britons after Christmas spending sprees January 18, 2017 After the party, the hangover. Christmas cheer is set to run out for good tomorrow, as a new survey shows Thursday will be the poorest day of the year for Britons. A perfect winter storm of high spending during December and payrolls being brought forward before the holidays begin will leave Brits with a New [...]
Higher fiscal spending could prompt faster tightening of monetary policy says Federal Reserve’s Brainard January 17, 2017 Donald Trump’s economic policy could lead to a faster pace of monetary policy tightening, according to an influential member of the US Federal Reserve’s rate-setting body. If the US President-elect’s policies lead to higher inflation at a time when the US is approaching full employment, the Federal Open Market Committee (FOMC) could be forced to [...]
