Bank of England raises interest rates for the first time in a decade November 2, 2017 The Bank of England’s top economists today voted to raise its key interest rate, bringing to an end an extraordinary 10-year period without a hike despite internal dissent about its decision. Seven members of the rate-setting monetary policy committee (MPC), including governor Mark Carney, voted in favour of a 0.25 percentage point hike in bank [...]
London house prices: Now a forecast says house price growth won’t rise until 2020 November 2, 2017 House prices will contract in London this year and next, a new forecast has suggested, before finally beginning to rise in 2020. Prices in the capital will fall 1.5 per cent this year and two per cent in 2018, then remain flat in 2019, before rising five per cent in 2020. In total, house prices [...]
Construction PMI: UK construction sector crept back into positive territory in October November 2, 2017 The pound edged off lows in morning trading after a closely-watched index suggested the UK’s construction industry showed a very slight expansion in October. IHS Markit’s purchasing managers’ index for the construction industry rose to 50.8 in October, up from 48.1 in September and ahead of expectations of 48.0. Any figure below 50 denotes a [...]
No monkey business: What the finance industry can learn by going back to basics November 2, 2017 There's a lot we can learn from our closest relatives. And no, I’m not talking about human relatives. I’m talking about those in the animal kingdom: monkeys. One thing monkeys can teach us about humankind is our predisposition to gamble. You’re probably wondering when you last saw a monkey in Paddy Power. And since when [...]
Risks of artificial intelligence on financial markets must be monitored, warns Financial Stability Board November 1, 2017 The world’s top central bankers have warned that the spread of artificial intelligence could pose a threat to financial stability. The Financial Stability Board (FSB) said yesterday it was crucial for regulators to monitor the growing adoption of AI and machine learning technology across the financial industry, from hedge funds to brokers to banks. Read [...]
Shadow MPC: Majority backs the first Bank of England interest rate hike in a decade November 1, 2017 The Bank of England is expected to raise interest rates tomorrow, bringing an end to an extraordinary decade without a single hike. City A.M.’s shadow monetary policy committee (MPC), including some of the most prominent economists in the Square Mile, narrowly backed the move, but remained split by five votes to four in favour of [...]
Pound sterling rises as UK manufacturing PMI increased more than expected in October, adding to expectations of an interest rate hike (GBPUSD) November 1, 2017 The UK’s manufacturing output increased more than expected in October, a closely-watched index has shown, adding further fuel to expectations of an interest rate hike tomorrow. IHS Markit’s purchasing managers’ index for the manufacturing industry rose to 56.3 in September, against expectations it would stay flat on last month’s 55.9. Any figure above 50 shows [...]
Control Brexit and nationalism concerns by investing globally November 1, 2017 As UK investors await the final Brexit plans, it may be time to consider the benefits of geographic diversification. What a difference a year makes. Last June, as Brits voted to leave the EU, many viewed it as a time to shed UK assets. Sterling fell to multi-decade lows versus the dollar and other currencies. [...]
Think locally, invest globally: Why Brexit isn’t the calamity some fear November 1, 2017 A year after the Brexit vote, the UK has managed to avoid a bear market and recession. Still, global diversification remains a key tool for investors. Fifteen months after Brits voted to leave the EU, the UK government is slowly ploughing ahead with Brexit. Invoking Article 50 of the Lisbon Treaty in March was the [...]
Control Brexit and nationalism concerns by investing globally November 1, 2017 As UK investors await the final Brexit plans, it may be time to consider the benefits of geographic diversification. What a difference a year makes. Last June, as Brits voted to leave the EU, many viewed it as a time to shed UK assets. Sterling fell to multi-decade lows versus the dollar and other currencies. [...]