Banks leave £13bn in cheap money from Term Funding Scheme on the table March 1, 2018 The final tally of cheap Bank of England (BoE) loans taken on by Britain’s banks is now in, with lenders leaving almost £13bn on the table. Banks borrowed £127bn under the Term Funding Scheme (TFS), which closed yesterday, according to Bank of England data. The scheme delivered a stream of almost interest-free loans to banks [...]
Keeping the little guys in the loop: How Funding Circle hopes to fix the financial system March 1, 2018 Let's be honest, financial institutions can be bleak places. Pretentious, impenetrable, and determined to make you feel conscious of your own tiny existence. So when I step into the bustling hive that is Funding Circle’s office, it’s a breath of fresh air. There’s not a suit in sight, the place is immersed in a babble [...]
Lawyer in Lloyds shareholder action asks judge to send “firm message” to bank after “colossal risk” of HBOS acquisition February 28, 2018 Lawyers acting for Lloyds Banking Group investors in a £550m legal action over its handling of the 2008 purchase of HBOS today asked the judge in the case to send a “firm message” over the lender’s “duties to its shareholders”. The High Court heard closing arguments from Richard Hill QC, who is representing around 6,000 [...]
Low inflation? Blame it on the old people (or raise the target to three per cent) February 28, 2018 Central bankers scratching their heads as to why inflation has stayed so low despite unprecedented loose monetary policy may have a new scapegoat: old people. Research published today by Oxford Economics, a consultancy, shows a clear correlation between an ageing population and lower inflation. In the five years to 2015 47 per cent of the [...]
Fed chair willing to hike rates faster if necessary February 28, 2018 On Tuesday, US Federal Reserve chairman Jerome Powell’s prepared comments to Congress were released ahead of his appearance before the House Financial Services committee. In them he downplayed concerns over recent stock market volatility, claiming dramatic swings do not weigh heavily on his outlook for the economy and maintaining his expectation for further gradual increases [...]
Disruption is everywhere – but so are the investment opportunities February 27, 2018 I’m not usually a subscriber to “this time it’s different”, but when it comes to the emerging disruption in so many industries, “this time it’s more than average” doesn’t really seem to cut it. This time I have a feeling it really may be different, because today’s disruptions are everywhere, and that means that there [...]
No wonder the pound is rising – 2018 could finally be the year that hawks get their way and push up interest rates February 27, 2018 The start of next week will mark nine years since the Bank of England slashed interest rates to an historic low of 0.5 per cent and unleashed its first round of quantitative easing, an unprecedented measure designed to counteract a deep recession triggered by the financial crisis. Ever since, hawks and doves have squabbled over [...]
Now the fog has lifted, the UK’s post-Brexit future looks bright February 26, 2018 In the 18 months following the Brexit referendum, the forecasts from the Treasury, the Bank of England, the IMF, and the OECD were proven wrong. The predicted recession, higher unemployment and a list of other calamities did not happen. Nobel Prize winning economist professor Paul Krugman described the analysis from the Project Fear propagandists as [...]
Bank of England’s deputy dove Sir Dave Ramsden says faster rate hikes are coming February 25, 2018 One of the Bank of England’s most dovish rate-setters has decided that signs of firmer wage growth mean interest rates need to rise more quickly, according to comments reported today. Sir Dave Ramsden, the Bank’s deputy governor, said that “relative to where I was, I see the case for rates rising somewhat sooner rather than [...]
UK housebuilder Persimmon’s profits to jump to £1bn as firm moves past pay controversy February 25, 2018 Persimmon’s profits are expected to jump close to the £1bn mark this week as the housebuilder continues to bat off criticism for the pay awards it handed to executives. Analysts are expecting pre-tax profits to rise 25 per cent, up from £775m to £965m, when the firm announces its 2017 figures on Tuesday. The news [...]