A financial crisis in 2018? The danger signs are starting to emerge December 15, 2017 It is 10 years since the last financial crisis, and it has taken that long for normality to return. For the first time since the crisis, major economies are expanding together. Unemployment rates in the US and UK economies have halved. However, productivity and investment growth has been on a declining trend in major economies. [...]
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 [...]
Corbyn doesn’t want to replicate the City’s success – he wants to destroy it December 14, 2017 London is unique as a global centre. These words are spoken so often, both within the City and outside of it, that they have become a cliche. But no other world-leading nation has its political capital, its financial centre, and its cultural heart all in the same city. The sectors feed and support one another, [...]
Taxman “rubbing its hands with glee” over bitcoin December 13, 2017 Interest in bitcoin has continued to boom despite concerns that the bubble could burst at any moment, and regulators are struggling to keep up. Today, news emerged that South Korea was considering taxing capital gains from cryptocurrency trading, prompting questions of how bitcoin could be taxed in the UK. “Any moves to introduce CGT [capital [...]
Bank of England plans to remove “gendered language” from all banking regulation December 13, 2017 The Bank of England plans to remove “gendered language” from its regulation of managers in the banking and finance sectors. The Bank’s Prudential Regulation Authority (PRA) will change the Senior Managers and Certification Regime (SM&CR), the rules governing who bankers, insurers, and other finance managers behave, according to a consultation document published today. The regulation [...]
Shadow MPC: After the historic hike, Bank of England should hold fire December 13, 2017 Last month the Bank of England raised interest rates for the first time in a decade – a momentous, if expected, moment. After the storm, the calm. It’s no surprise that our shadow monetary policy committee (MPC) has overwhelming voted against raising interest rates at this meeting, arguing the Bank needs to be cautious about [...]
Christmas consumers face an epic hangover December 13, 2017 Britain’s inability to deal with a little snow may have kept shoppers from the high street this week, but Kantar Worldpanel and Nielsen (two of the biggest data firms going) have suggested that despite the weather, we’re gearing up to a cracker of a Christmas for retailers. For those who like to avoid the crowds, [...]
Venezuela’s ironic cryptocurrency distraction: the flaws of the Petro December 13, 2017 Last week Venezuela’s Maduro regime vowed to finally put an end to the nation’s economic woes by creating a sovereign cryptocurrency, the Petro. Falling oil prices coupled with years of corruption and economic mismanagement have created a toxic mixture of soaring inflation, rampant unemployment and a burgeoning underground economy. The Petro is being touted as [...]
UK inflation hits 3.1 per cent December 12, 2017 Inflation hit 3.1 per cent in November, meaning Bank of England (BoE) governor Mark Carney must write to the Treasury with an explanation for the rise. November’s consumer price index (CPI) reading was expected to remain unchanged at three per cent for the third month in a row. CPI has been above the Bank of [...]
Cities are still at the heart of Britain’s prosperity – but the north-south divide is getting even bigger December 12, 2017 In the aftermath of the financial crisis much was written about Britain’s supposed need to “rebalance” its economy away from London and, specifically, the City. Numerous commentators argued that new drivers of growth must be found in other parts of the UK, and called for policies aimed at reviving British manufacturing and reducing our reliance [...]