Marcus Brookes: How we’ve prepared for the return of inflation December 6, 2016 Inflation was already on the rise. Now I expect the policies likely to follow in Donald Trump’s presidency will pile on further price pressure. The deflating effect of QE We have been changing our portfolios over the last year to reflect our view that inflation may be returning to the financial system. Yes, quantitative easing, [...]
Bank of England: Households will struggle to pay debts if interest rates rise December 6, 2016 UK households could struggle to meet debt repayments if interest rates rise, according to the Bank of England, as it confirmed the conclusions of last week's financial stability report. The Bank said "risk of a further sharp adjustment in fixed income markets remained” owing to the global economic environment. The minutes of the bank's Financial Policy Committee [...]
Mark Carney takes aim at so-called stateless companies, as he jumps to defend Bank of England policies December 5, 2016 The Bank of England governor has this evening launched an attack on so-called "stateless corporations", in a wide-ranging speech aimed at creating a fairer economy and tackling inequality. Speaking at Liverpool John Moores University, Mark Carney called for stronger measures to confront inequality in order to stop more people turning their back on [...]
Too big to fail banks are a global affair, says Bank of England’s Sir Jon Cunliffe December 5, 2016 Handling too big to fail banks is a worldwide issue, particularly given the number of lenders which trade cross-border, a key Bank of England figure has said today. Writing for the European Economy online journal, Sir Jon Cunliffe, deputy governor for financial stability at the Bank, said international cooperation to create response plans for the failure of one of [...]
The UK’s services sector grew unexpectedly fast last month – pushing up GDP expectations December 5, 2016 Growth in the UK's three main sectors suggests the economy will 0.5 per cent in the fourth quarter, against Bank of England expectations of 0.4 per cent, new figures have suggested. The purchasing managers' index for the services sector, published today by Markit, grew unexpectedly fast in November, rising to 55.2 from 54.5 last month – [...]
Royal Bank of Scotland reaches £800m settlement deal with three shareholder groups December 5, 2016 Royal Bank of Scotland has reached a settlement with three out of five shareholder groups involved in claims relating to a rights issue the bank carried out during the financial crisis. RBS said today that it has concluded a "full and final" settlement with three of the groups, representing around 77 per cent of the [...]
British households taking on more debt as almost half struggle to pay credit card bills on time December 5, 2016 Almost half of British consumers struggle to pay off their credit card bill each month, while the proportion taking on more debt over the last five years has risen sharply. Borrowing has continued to rise to record highs in the wake of the vote to leave the European Union. The proportion of borrowers who have [...]
Retail shareholders hold out for better deal in RBS lawsuit December 4, 2016 A subset of shareholders suing RBS over how it handled a financial crisis fundraising are holding out for a better deal, despite other investors closing in on an out of court offer. Shareholders are currently due to face off against the bank in court next March, claiming the lender misled them into taking part in a 2008 [...]
The Rainbow Cafe in Cambridge isn’t accepting the new £5 note December 3, 2016 The Bank of England has already said it's asked its supplier to work on "potential solutions" to the issue of animal fat in its new £5 notes. But until then a vegetarian cafe in Cambridge is taking a stand by announcing it won't be accepting said fivers. The BoE confirmed using a trace of animal fat, [...]
How to prepare your portfolio for inflation December 2, 2016 Concerns about inflation were already on the rise. Donald Trump’s victory in the US election has further stoked expectations that price pressure, absent in most Western economies since the financial crisis, may make a return in 2017 and beyond. The basics Inflation is a measure of how fast the prices of goods and services [...]