Sterling’s strength could reverse before too long December 9, 2013 Despite signs of a strong UK recovery, the pound may suffer from Fed tapering and an improving Eurozone, says Liam Ward-Proud The pound’s enduring strength since the summer has caught many by surprise. Towards the end of June, with sterling-dollar just below $1.55, Morgan Stanley strategists expected it to fall to $1.45 in the third [...]
US job creation to boom as government slashes spending December 9, 2013 The US economy is on the path to strong job growth and higher wages, according to the National Association of Business Economics (NABE) quarterly survey. Unemployment will continue to fall with 200,000 jobs being added every month. As job creation increases workers will see more rapid wage growth, from 1.8 per cent in 2013 to [...]
UK division of Leica sees slower sales despite new camera launch December 8, 2013 THE UK division of Leica Cameras, the iconic camera brand used by celebrated photographer Henri Cartier-Bresson, reported a slowdown in sales last year despite rolling out a new flagship camera. Leica Camera, which is owned by German parent company Leica AG and distributes cameras in the UK, reported a 12 per cent dip in turnover [...]
Bank timidity over interest rate rises risks a destabilising build-up in debt December 8, 2013 THE BANK of England’s revised mandate may push the Monetary Policy Committee (MPC) to leave interest rates on hold for too long, complicating efforts to bring down inflation and household debt to more prudent levels. Key to the timing of interest rate rises will be unemployment, since the Bank is highly unlikely to hike rates [...]
Letters to the Editor – 09/12 – Toll roads, Labour flailing, Best of Twitter December 8, 2013 Toll roads [Re: Government scraps plans for toll pricing as taxpayers pick up tab, Tuesday] It is a shame that the government seems to have ignored the economic argument for toll roads. Pricing mechanisms have proven themselves in other areas of transport as an efficient means of allocating scarce resources, like road space. Moreover, technological [...]
Investors are about to get very frightened as US unemployment drops like a stone December 6, 2013 US unemployment has fallen way faster than expected in November. For once that good news is good news to Wall Street. The headline unemployment rate dropped from 7.3 per cent to seven per cent. Analysts had predicted a fall to 7.2 per cent. You might think that this is unambiguously good news for the US [...]
Why today’s US jobs number is the most important economic event this week December 6, 2013 Later today, the most important data on the global economic calendar will be released: US nonfarm payrolls. The jobs report will be the most obvious sign yet as to whether – and when – the Fed will begin tapering its $85bn per month quantitative easing programme. The timing of a stimulus cut has preoccupied markets [...]
What you need to know before the open – 06/12 December 6, 2013 US markets finished lower for the fifth day in a row yesterday, as data came in ahead of expectations and investors await nonfarm payrolls later today. The surprise rise in US third quarter GDP, to 3.6 per cent, was well above forecasts. In Friday trading, Asian markets fell on the news. Better-than-expected data are fuelling [...]
London Report: FTSE falls for a fifth day amid US taper jitters December 5, 2013 BRITAIN’S benchmark equity index fell for a fifth straight day yesterday, its longest losing streak since March, as improving US economic data fuelled expectations that the Federal Reserve may cut its equity-friendly stimulus programme early. The US economy grew faster than initially estimated in the third quarter, data showed, encouraging bets that unemployment and non-farm [...]
New York Report: Wall Street continues its trek downward December 5, 2013 US stocks fell yesterday, with the Dow and S&P 500 dropping for a fifth straight session after a round of mixed economic data left traders guessing as to when the Federal Reserve would begin to slow its stimulus programme. The Dow and the S&P 500 are in their worst stretch since September. However, the moves [...]