The chancellor’s new investments should boost productivity – but the next few years are going to be tough November 23, 2016 Philip Hammond kept the nation in suspense as to the new government’s priorities for the economy until the Autumn Statement, and generally it was worth the wait. The chancellor proved a bigger spender, focusing on one of the fundamental challenges facing the UK economy beyond Brexit – productivity. If the UK is to forge a [...]
It’s official: The pound’s fall is set to raise inflation way above target in the next few years November 23, 2016 The UK’s rate of inflation will grow faster than previously predicted, according to new government forecasts. The Consumer Price Index (CPI),the main measure of UK inflation, will rise to 2.3 per cent in 2017, according to new figures from the Office for Budget Responsibility. The figures were released today alongside chancellor Philip Hammond’s first Autumn [...]
Autumn Statement TL;DR? Here’s our at-a-glance guide November 23, 2016 Chancellor Philip Hammond spoke for around an hour while delivering today's Autumn Statement. If you don't have time for that, here's our at-a-glance overview of the announcements you need to know: Economics, public spending and politics The Office for Budget Responsibility (OBR) forecast for growth increased to 2.1 per cent, up from two per cent, for 2016, but [...]
Ex-Sainsbury’s boss Justin King thinks the price of your weekly grocery shop is about to rise five per cent November 23, 2016 Sainsbury's boss Justin King is one of those retail legends who, like former Tesco chief exec Sir Terry Leahy, had the foresight to get out just as things were about to get hairy. Now King has used that foresight to suggest the price of your weekly shop could be about to leap. In an appearance [...]
Uncertainty not totally to blame for UK’s economic problems, says MPC member November 23, 2016 Uncertainty might be causing some wobbles for businesses, but it gets more blame than it deserves, a member of the Bank of England's monetary policy committee (MPC) will say this morning. Speaking at a conference hosted by JP Morgan Cazenove, Kristin Forbes, external MPC member, is expected to say that, while mentions of uncertainty in the likes of [...]
Forward guidance is just another delusion foisted on us by mainstream macroeconomics November 22, 2016 The governor of the Bank of England, Mark Carney, was on good form last week when he appeared at the Treasury Committee of the House of Commons. Asked what “forward guidance” meant, he answered smoothly: “The thing about forward guidance is that it is guidance that is forward. Which is not to say it is meant [...]
Big data should be used to discriminate on motor insurance premiums, says FCA chief executive November 22, 2016 Insurers should use big data to identify and reward good drivers, according to the head of the UK's financial watchdog. Speaking today at the Association of British Insurers' (ABI) annual conference, Financial Conduct Authority (FCA) boss Andrew Bailey said the "revolution in our ability to capture and use information" should be encouraged by regulators in certain [...]
Autumn Statement 2016: Looming dangers demand an urgent rethink of monetary policy in Britain November 21, 2016 A widely-held, but erroneous, view is that low interest rates act invariably as a welcome, unambiguous boost to business, consumers and the economy. Nonetheless, it seems almost incredible that the Bank of England has maintained an emergency rate since March 2009. The granting of (notional) independence over monetary policy to this institution has allowed politicians [...]
Investor confidence in UK shares falls and “nervousness” is likely to grow around Brexit November 21, 2016 Investor confidence in UK equities fell in November and “nervousness” is likely to grow as Brexit uncertainty continues, according to a Lloyds study. The bank’s Investor Sentiment Index for November found sentiment to UK shares was 11.3 per cent, down 4.5 percentage points on October and 14.9 on November last year. Sentiment towards UK property [...]
May risks return to “picking winners” former BoE deputy governor warns, days before MPs grill Arm Holdings November 20, 2016 Bank of England deputy governor Sir Charlie Bean has raised concerns over Theresa May's desire to intervene in the UK's economy, just days before MPs grill the British firm at the heart of a £24bn foreign takeover backed by the Prime Minister. Bean, who served as deputy governor from 2008 to 2014, told City A.M. that he held [...]