France set to miss deficit target June 25, 2014 FRANCE’S statistical agency suggested yesterday the economy would grow too slowly to meet the country’s deficit target this year, as German consumer confidence climbed to a post-crisis high. The French agency Insee indicated that the government would likely not meet its growth target – with only a 0.7 per cent boost likely. “With growth clearly [...]
Sentiment souring on prospects for Chinese business in future June 25, 2014 CHINESE consumers are more pessimistic about the country’s economic future than at any time since at least 2007, according to a survey released yesterday. The MNI Indicators and Westpac index of Chinese consumer confidence overall fell to the lowest level in just under a year. The expectations part of the measure dropped to 126.4, the [...]
Mansion tax would hit twice as many houses today as in 2009 June 25, 2014 THE NUMBER of houses which would be hit by a mansion tax has doubled in the past five years, alongside the rapid recovery in prices, especially in the capital. Research released by consultancy Knight Frank yesterday indicated that a tax on residential properties which cost more than £2m would hit twice as many homes today [...]
MP Pat McFadden tells Mark Carney: You’re like an unreliable boyfriend June 24, 2014 The Bank of England was slammed by MPs yesterday, taking fire for erratic communication on when interest rates would likely begin to rise. Governor Mark Carney and other senior policymakers sent sterling down during their quizzing by politicians yesterday. Some analysts suggested that the policymakers were backing away from their new hawkish stance, with more [...]
Zero hours rules to crack down on exclusivity June 24, 2014 EMPLOYERS hiring workers on zero-hours contracts will no longer be allowed to compel their staff to work only for them, following a government intervention announced today. Exclusivity clauses will now be banned for zero-hours contracts, allowing workers to look for and undertake employment elsewhere. The government estimates that 125,000 workers are tied to such arrangements. [...]
Turkey rate cut shocks market June 24, 2014 THE TURKISH central bank announced another rate cut yesterday, surpassing market expectations with a 0.75 percentage point cut in its benchmark rate. The move brings the bank’s main policy rate to 8.75 per cent, easing for the second straight month. “Even though inflation is well above target and the current account deficit remains large, the monetary policy [...]
Abe fires third reform arrow June 24, 2014 JAPANESE Prime Minister Shinzo Abe yesterday released further details of his supply-side reform plans, including corporation tax cuts. The “third arrow” of Japan’s radical package of economic reforms looks to long-term growth challenges. The country is now set to cut corporation tax to below 30 per cent in the next few years, from above 35 per [...]
Rouble firms on Ukraine hopes June 24, 2014 THE RUSSIAN rouble shot up against the dollar yesterday, reaching its highest level since January, as Moscow gave stronger indications that the conflict in Ukraine would be de-escalated. Russian President Vladimir Putin asked the country’s legislators yesterday to rescind permission he had been previously granted to intervene militarily in Ukraine. The dollar dropped below the [...]
Italian PM Matteo Renzi says Europe is like a boring old aunt June 24, 2014 Italian Prime Minister Matteo Renzi called for a change of course for the European Union yesterday, likening the institution to a “boring old aunt”. The head of government called for more flexible rules on the fiscal plans of Eurozone states that are being particularly proactive in their structural reforms, echoing comments last week by German economy [...]
Bankers report anaemic rise in business loans June 24, 2014 LENDING to businesses is rising sluggishly while the latest mortgage lending figures showed yesterday that the new regulatory efforts are helping to cool the growth of credit for housing. Figures from the British Bankers’ Association (BBA) indicate that business lending has barely budged from its position a year ago, rising by only 0.3 per cent, [...]