Venezuela declares every Friday a holiday as energy crisis bites April 7, 2016 Venezuela has declared that every Friday for the next two months will be a holiday. In a televised speech last night, Venezuela's president Nicolas Maduro said: "We'll have long weekends." While your typical workers probably dreams of a four-day working week, more time off for Venezuelans is actually the result of a crippling energy crisis. Read more: Socialism has created [...]
Europe goes shopping as prices keep dropping, but confidence may be short-lived April 5, 2016 The Eurozone was treated to a rare piece of good economic news this morning, as official figures showed households are buying 2.4 per cent more retail products than this time last year, though economists were pessimistic about how the long the feel-good factor would stick around. According to Eurostat, the EU’s official number crunchers, bumper [...]
Inflation’s going to rear its head again: Epic money printing through QE is going to cause a spurt of price rises April 5, 2016 Inflation, the silent force that raises prices, could be coming back with a vengeance. Whether it’s a pernicious tax that erodes ordinary people’s purchasing power or a necessary part of healthy economies is still open for debate. But inflation has been around since ancient times. The price of barley spiked in Babylon during the reign [...]
The four key points from Janet Yellen’s speech at the Economic Club of New York March 29, 2016 Federal Reserve chair Janet Yellen delivered a speech on the economy at the Economic Club of New York today. In case you missed it, here are the key points: Proceeding cautiously with interest rates Yellen believes the ability to deal with economic shocks is asymmetric. Because interest rates are near zero, she believes it's easier to respond [...]
Core US prices maintain fast pace as personal income growth slows March 28, 2016 Growth in US consumer incomes slowed in February, according to figures released today. However, inflation is on course to rise toward the US Federal Reserve’s two per cent target this year, the data from the Bureau of Economic Analysis shows. Total personal incomes rose 0.2 per cent, marking a slowdown from January’s bumper 0.5 per [...]
Going nowhere fast: UK inflation stays at 0.3 per cent in February March 22, 2016 The UK's inflation rate remained at 0.3 per cent in February, according to data released this morning by the Office for National Statistics. Inflation, as measured by the year-on-year change in the consumer price index, was equal to January's 12-month high of 0.3 per cent. Transport costs were the biggest downward contributor falling 1.1 per cent on the [...]
Halfords and N Brown share price drops after UBS downgrade, blaming Brexit, Amazon and currency woes March 21, 2016 Shares in Halfords and N Brown have dropped sharply today after analysts at UBS slashed their ratings for both retailers in a bearish note on the sector. The Swiss bank's research arm, UBS Evidence Lab, has warned of on a whole shopping basket of challenges facing retailers this year, including short-term uncertainty over Brexit, wage inflation, currency and the increasing dominance of Amazon. [...]
Bank of England’s monetary policy committee votes unanimously to keep interest rates at rock bottom as it signals concern over EU referendum and pay growth March 17, 2016 Interest rates at the Bank of England will be kept at a record low of 0.5 per cent for the next month after another unanimous vote. The MPC is concerned pay rises might be lower due to subdued inflation, the minutes of the meeting revealed. The MPC said empirical evidence on inflation expectations and their [...]
Eurozone deflation ruins quantitative easing’s first birthday March 17, 2016 Annual price growth in the Eurozone dropped to back into negative territory in February, official figures confirmed this morning. Inflation as measured by the harmonised index of consumer prices (HICP) was minus 0.2 per cent in February, according to EU statistical office Eurostat. The data confirms an earlier estimate and shows inflation has deviated further from its two per [...]
Budget 2016: George Osborne’s speech in full March 16, 2016 George Osborne has just revealed the Budget for 2016. There was good news for businesses with corporation tax being sliced and business rates being reformed – but bad news for smokers and students who hate maths. Mr Deputy Speaker, Today I report on an economy set to grow faster than any other major advanced economy in [...]