Germans leave Brexit behind as economic sentiment recovers from July lows January 17, 2017 Confidence in the German economy has risen to its highest point since before the UK’s Brexit vote, according to a long-running survey of business in Europe’s largest economy. The ZEW Indicator of Economic Sentiment for Germany increased slightly in January 2017. The indicator rose by 2.8 points to reach 16.6 points, although this was less [...]
Sterling rockets as Theresa May reveals Parliament will vote on Brexit January 17, 2017 Sterling has shot up after Theresa May’s flagship speech on Brexit, as the Prime Minister announced there will be a vote in both house of Parliament on triggering Article 50. Chancellor Philip Hammond also announced the UK would be leaving the EU’s Single Market, which was then confirmed shortly afterwards in the Prime Minister’s speech. [...]
Theresa May: The UK “cannot” remain a Single Market member January 17, 2017 Prime Minister Theresa May and chancellor Philip Hammond have both said the UK will terminate its membership of the Single Market. Hammond revealed the UK would look for a "quick and simple" and "ambitious agenda for a comprehensive free-trade agreement" in the House of Commons, while May's landmark address at Lancaster House said the UK "cannot" remain a [...]
Inflation hits 1.6 per cent: Experts react to biggest price rise in two years January 17, 2017 Inflation has come in higher than expected as weaker sterling continues to feed through into higher prices for the UK consumer. The 1.6 per cent increase in December surprised analysts. The Bank of England expects inflation to hit 2.7 per cent by the end of this year. It has a legal target rate of two [...]
UK inflation rises faster than expected to hit highest rate in more than two years January 17, 2017 Prices in the UK increased faster than expected in December, as the impact of a weaker pound continues to feed through on consumer shopping baskets. The consumer price index rose by an annual rate of 1.6 per cent, beating market expectations of around a 1.4 per cent increase in prices, according to the Office for [...]
Has the bond bull run’s bubble burst? Unpicking the Trump effect and other influences that will shape the bond market in 2017 January 16, 2017 The election of Donald Trump as US President shocked the world and shocked the world’s markets. Yet that early reaction quickly morphed into euphoria, as stock indices in America experienced huge inflows and hit record highs. For investors left high and dry as trillions of dollars drained from safer fixed income bonds into riskier equities, the [...]
WhatsApp security flaw could allow government to read supposedly secure messages January 13, 2017 A security loophole in the WhatsApp messaging app could allow the UK government to legally read supposedly secure encrypted messages, according to a law firm. Researchers testing the app found Facebook employees would be theoretically able to access messages sent from the service, according to reports in the Guardian. The back door through WhatsApp’s security [...]
Volatile sterling can’t stop FTSE set for second week of records January 13, 2017 The FTSE 100 looked set to round out a second week of record gains at lunchtime on Friday, as sterling performance wobbled in volatile trading. Sterling rose as high as $1.2233, but cable has since retreated to trade almost flat at the time of publication. Performance against the euro has fallen more steeply, with losses [...]
Turkish lira resumes its sell-off after brief rally on tightened liquidity from central bank January 13, 2017 The Turkish lira has suffered a fresh sell-off after briefly rallying against the dollar from record lows when the country’s central bank moved to tighten liquidity. The US dollar rose against the lira on Friday by over 1.5 per cent to over 3.8272 Turkish lira. The dollar had strengthened to record highs of 3.9415 Turkish [...]
Tight labour market should not make Bank of England raise rates automatically says MPC economist January 13, 2017 A tightening labour market should not necessarily prompt the Bank of England (BoE) to raise interest rates, according to a member of the Bank’s rate-setting body. “Monetary policy should not be set in a way that seeks to rule out sub-5% unemployment over time,” Michael Saunders, an external member of the Bank’s Monetary Policy Committee [...]
