Bank of England rate-setter thinks sterling could fall further October 11, 2016 The newest member of the monetary policy committee (MPC) has said the pound could continue to fall given inherent weaknesses in the UK economy. Michael Saunders, who joined the Bank of England's rate-setting committee over the summer, told MPs today: "Given the scale and persistence of the UK's current account deficit, I would not be [...]
Business rates that hit London need reform October 11, 2016 Business rates are a blunt instrument, one which is set to deliver a heavy blow to London’s retailers, offices and hotels. Rates are due to rise from next April after a revaluation of rateable values for England’s 1.85m commercial properties by the Valuation Office Agency. It is the first such revaluation since 2010. Analysis by [...]
Trump follies should make Britain count its Brexit blessings October 10, 2016 Investors can breathe a sigh of relief that the biggest Black Swan is treading water. Thanks to one lewd recording – dating back a decade – Donald J Trump’s race to the White House could be in serious jeopardy. The diminishing chances of a Trump presidency have put Europe back in the market’s crosshairs, as [...]
This is Me: Let’s talk about mental health to end the stigma in the City October 10, 2016 Today may be World Mental Health Day, but if you’re an employer, or indeed an employee, mental health should always be top of your agenda. Stress and poor mental health in the workplace are commonplace. Last week, a survey by Business in the Community and YouGov, supported by Mind, revealed that 62 per cent of [...]
After a torrid time for sterling, is the UK economy heading for trouble? October 10, 2016 Andrew Sentance, senior economic adviser to PwC and former member of the Bank of England’s MPC, says Yes. It is not just Brexit which is undermining sterling at present. The UK has a large balance of payments deficit. The government still has a large deficit – and Philip Hammond seems more relaxed than George Osborne about [...]
How low can the pound go? All your questions about the flash crash answered October 10, 2016 Currency markets opened yesterday evening after a turbulent end to last week for the pound. Sterling has slowly trundled steadily south since Britain’s decision to leave the EU. But last Friday sterling plummeted by six per cent in just two minutes during the early hours of the morning – it was dubbed a “flash crash”. Read [...]
Chin up: How Twitter reacted to today’s sterling free fall October 7, 2016 It’s fair to say the pound has had quite a day. The currency regained some of its losses in afternoon trading, but spent most of this morning in free fall, after an overnight flash crash. Widely thought to be a case of either a "fat finger" or an algorithm picking up on negative Brexit stories overnight, at one point the [...]
Flash crash and extreme trading slams sterling October 7, 2016 Sterling has been rocked by an extreme day of trading about a freak flash crash overnight rattled markets and sent investors running. After dropping at least six per cent against the dollar in a matter of minutes, the pressure failed to lift and sterling had its worst week of trading since the referendum. A fresh sell-off had the currency down [...]
What does the flash crash mean for UK interest rates? October 7, 2016 The flash crash in sterling has sent UK inflation expectations to a three-year high and caused bond yields to spike. Sterling sunk six per cent in a matter of minutes overnight before recovering some, but not all, of its losses. In fact, the pound is still down more than two per cent against the dollar [...]
Where next for sterling after the flash crash? October 7, 2016 The flash crash rocked currency markets overnight and has spooked investors this morning. Despite some interesting theories as to its cause, the general consensus is it was a freak event triggered by some hasty algorithmic trading in a relatively dried-up markets. Nevertheless, that hasn't calmed nerves. Before the crash sterling was hovering between $1.25 and [...]