2016: A post-mortem of the year the UK’s “economic experts” failed December 20, 2016 The end of a calendar year and the start of a new one provides a chance for reflection. For the UK’s economic establishment, particularly forecasters, introspection is more appropriate. Complete with their New Keynesian models, most have been proven utterly wrong so far that voting for Brexit would lead to a short-term downturn. As the most [...]
Fiver producer Innovia Group sold in meaty £680m deal with Canadian giant December 20, 2016 Here's another big deal worth, ahem, noting: Innovia Group, supplier of the Bank of England’s new plastic five pound note that has come under fire for containing animal fat, has been snapped up by a Canadian label and packaging maker in a CA$1.13bn (£680m) move. The UK-based company makes specialty bi-axially oriented polypropylene films used for [...]
Diverging forecasts on inflation and GDP from leading economists point to uncertain times for the UK December 20, 2016 Following a year in which British people have allegedly “had enough of experts” – or should that be “soothsayers and astrologers”? – it is a brave economist who will venture a guess at where we will be in 12 months' time. But that is what three prominent economists have done for the Economic Research Council. [...]
Uncertainty causes 20 per cent of market fluctuations says the ECB December 19, 2016 Uncertainty about the future has a measurable economic effect – and could account for as much as 20 per cent of fluctuations in the economy, according to a report by the European Central Bank (ECB). The ECB report said: “Macroeconomic uncertainty is estimated to have contributed significantly to real GDP growth fluctuations in the euro [...]
What next for the FTSE 100? December 19, 2016 The FTSE 100 largely brushed aside concerns over Brexit and the US election in 2016 to hit its highest ever level of 7,129.83. However, the index has struggled to maintain its momentum and push on from that record high reached in October. Here we take a look at why the index remains near record highs [...]
What next for the FTSE 100? December 19, 2016 The FTSE 100 largely brushed aside concerns over Brexit and the US election in 2016 to hit its highest ever level of 7,129.83. However, the index has struggled to maintain its momentum and push on from that record high reached in October. Here we take a look at why the index remains near record [...]
Anti-money laundering rules need a rethink to protect ailing correspondent banking sector, says Financial Stability Board December 19, 2016 The international body responsible for keeping an eye on financial stability has today warned anti-money laundering rules need a rethink to help support a significant but shrinking sub-sector of the banking industry. In its latest progress report on the decline in correspondent banking – essentially the middlemen who can provide services, such as wire transfers or on [...]
UK banks still vulnerable to a “toxic cocktail” of taxpayer bailout risks says Treasury Select Committee chair December 19, 2016 The UK’s banks are still vulnerable to a “toxic cocktail” of risks for which the taxpayer may have to foot the bill, according to the head of the Treasury Select Committee (TSC). TSC chair and Conservative MP Andrew Tyrie is launching a new inquiry into the sector, stating that the public has a right to know [...]
RBS drawing up contingency plans for Williams & Glyn as sale stalls December 18, 2016 Royal Bank of Scotland (RBS) is having to rethink plans to offload its 314-branch strong Williams & Glyn unit as it struggles with the European Commission’s deadline for a sale. The bank, which is still 73 per cent owned by the taxpayer, is supposed to announce a buyer for its Williams & Glyn network by [...]
China tops poll of UK investor expectations of highest stock returns in 2017 December 18, 2016 China will deliver the highest equity returns in 2017, despite prominent warnings that a slowdown in the world’s second largest economy presents one of the biggest risks to the global financial system, according to a poll of 9,000 UK investors. Over a quarter of UK investors believe that China will outperform every other major region, [...]