The Bank of England is investigating the overnight drop in sterling October 7, 2016 Mark Carney has asked the Bank for International Settlements (BIS) to investigate the cause of a sharp fall in the value of the pound in overnight trading in Asia. BIS, often dubbed the central banks for central banks, has global control for the currency markets, though with no hint of wrongdoing, it is unclear exactly how far [...]
Sterling smashed in flash crash: Why did it happen? October 7, 2016 Sterling was hit by a freak sell-off overnight as the currency crashed by six per cent seconds after the Asian markets opened for trading. The pound fell from $1.26 to $1.18 almost instantly, before recovering slightly to stand at $1.24 against the dollar. It was the same story against the euro, where the pound sank to [...]
Hammond to decide on more QE “carefully and cautiously” October 6, 2016 Chancellor Philip Hammond said today that future decisions over whether the government will approve another round of quantitative easing (QE) to bolster the economy would be taken "carefully and cautiously". His comments came a day after Prime Minister Theresa May acknowledged super-low interest rates and quantitative easing have "some bad side effects". Speaking during a television [...]
On National Poetry Day, City A.M. turns its searing newswriting hand to something more artistic October 6, 2016 It's National Poetry Day – you may have seen – so while simultaneously reporting the biggest business stories and breaking news, City A.M. journalists have written a few lines of poetry to cover some of the major talking points in recent days. Vice reporter Francesca Washtell offers 'Sin Haiku': Booze, cigs, sugar, bets, Vice would seem to have it [...]
Pound endures another rough rollercoaster ride amid mixed signals October 6, 2016 Sterling was sent on another rollercoaster ride yesterday as traders scrambled to digest fresh economic data alongside the latest messages emerging from Theresa May’s ruling Conservative party. The pound plummeted below $1.27 for the first time since 1985 as foreign exchange investors brushed off a relatively positive survey of economic activity in the UK’s dominant services [...]
Equivalence can’t trump passporting, warns boss of bank trade body October 5, 2016 Many of the alternatives to passporting would not allow the financial sector to continue business as usual, the chief executive of the British Bankers' Association has warned. Writing in his monthly newsletter, Anthony Browne noted that the passporting rules have "been a key factor in enabling the UK to grow as the financial capital of Europe". [...]
Tesco’s pension headache is a real challenge because of the financial strength of the company say experts October 5, 2016 Pension experts warned that Tesco's ballooning pension deficit could cause the supermarket problems when it comes to tricky conversations with the scheme's trustees. The deficit – which doubled to £5.9bn – was higher than anticipated and will likely prompt detailed scrutiny by the trustees, in particular when it comes to next year's triennial valuation. "The ballooning deficit at Tesco is [...]
Few signs of hope for the Brexit-battered pound October 5, 2016 Sterling could fall further if the UK looks on course for a rocky divorce with the EU, currency analysts have warned. Forecasters currently expect the pound to move sideways against both the dollar and the euro between now and the end of the year, but after a dramatic few days of trading, speculation over the terms [...]
US rate rise on the agenda as services sector storms ahead October 5, 2016 A pre-election rate hike in the US is back on the cards after a stellar performance from the country's services firms in September. The sector, which makes up around two-thirds of the world's largest economy, grew at its fastest pace this year, according to the closely-watching ISM non-manufacturing purchasing managers' index (PMI). The PMI came [...]
Theresa May criticises Bank of England for making people poorer October 5, 2016 Theresa May has come dangerously close to attacking the Bank of England in unprecedented comments on the tools it is using to support the economy during the aftermath of the financial crisis recession and the EU referendum. In her speech at the Conservative Party Conference today, May said: "While monetary policy with super-low interest rates and quantitative easing provided [...]