Letters to the Editor February 17, 2013 Fiscal failure [RE: High inflation is denting recovery: The Bank of England must act now, Thursday] Andrew Sentance makes some very good points. Quantitative easing (QE) has resulted in inflation. As an importer of wine, buying mainly in euros, weaker sterling affects my prices directly and we have no choice but to pass these on [...]
City maverick David Buik slams Sir Mervyn King’s BoE speech February 13, 2013 CITY stalwart David Buik of Cantor, who is known for his poetic City commentary – often quoting the likes of Whitman, Shakespeare, Poe and Housman – was left unimpressed with the Bank of England governor yesterday. “I would hardly describe myself as the sharpest pin in the box” opened Buik. “However having looked at the [...]
Care reforms will drag thousands more into inheritance tax February 10, 2013 INHERITANCE tax allowances will be held back from keeping pace with inflation for three more years to fund changes to elderly care, the government will announce today. Thousands more people will be forced to pay the 40 per cent rate because the amount that can be bequeathed tax-free will be pegged at £325,000 for individuals [...]
Analysts predict another missed inflation target in January data February 10, 2013 INFLATION will come in above target for the 38th straight month when data for January is released tomorrow, analysts have predicted. The consumer price index (CPI) will show inflation of 2.6 to 2.7 per cent, City economists said, marking yet another month above the Bank of England’s two per cent target, with aggressive discounting in [...]
City A.M. shadow MPC votes 7-2 against more QE February 6, 2013 ALLISTER HEATH | CITY A.M. “No change. There is no longer any lack of money supply, and the services sector purchasing managers’ index business survey suggests we may just about escape a triple-dip, if we are lucky. The real problem in the UK is that ultra-loose monetary policy is keeping zombie firms alive, slowing the [...]
Shop price inflation droops to 38-month low in January 2013 February 5, 2013 PRICE rises in shops were recorded at their slowest rate in over three years in January, according to data out this morning. Shop inflation ran at just 0.6 per cent over the year to last month, according to figures from the British Retail Consortium (BRC), the lowest rate since November 2009. This impressively low number [...]
The failure of QE isn’t an excuse for further Bank of England experiments January 28, 2013 QUANTITATIVE easing (QE) is like macroeconomic doping. America is like Lance Armstrong.” Or so a British journalist overheard at Davos. Relative to the size of the economy, of course, the UK is a more likely Armstrong than the US. Central bank asset purchases here have been about 25 per cent of GDP, compared to less [...]
Economic perfect storm: The four trends that killed Western growth January 21, 2013 THE West lies at the confluence of four extremely dangerous long-term developments. Individually or collectively, they have already begun to reverse more than two centuries of economic expansion. The first is well-known: the creation of the worst financial bubble in history – “the great credit super-cycle”. Since the 1980s, a relentless shift to immediate consumption [...]
Shoppers desert UK high streets January 20, 2013 BRITISH shops were abandoned in the run up to Christmas, new figures showed today, with hard-pressed consumers increasingly staying away from the high street, out of town retailers and shopping centres. Online sales soared upwards to account for over 10 per cent of total sales, leaving traditional shops to bear the brunt of the country’s [...]
Retail sales slip in December January 18, 2013 British retail sales posted a surprise fall in December, crushing hopes that buoyant Christmas trading would provide a boost to the economy. The Office for National Statistics said this morning that sales including fuel fell 0.1 per cent month on month in December. On an annual basis, retail sales posted a jump of 0.3 per [...]