Federal Reserve holds interest rates amid “softening” employment market August 6, 2008 The Federal Reserve, in a widely expected move, held US interest rates at two per cent last night, with Dallas Federal Reserve Bank President Richard Fisher the only dissenter among the 11 person panel. The statement from the central bank referred to the “softening” labour market and the “considerable stress” upon the financial market as [...]
Services shrink again August 6, 2008 Britain is likely to slide into a recession next quarter, or could already be in one, according to City economists following the publication of more miserable data documenting further declines in both the services and manufacturing sectors yesterday. In July, the services sector shrank for the third month in a row, according to the CIPS/Markit’s [...]
Construction plunges August 5, 2008 Construction activity fell to a record low in July, driven by the collapse of the housing market and the stuttering economy, the latest survey showed yesterday. According to the Chartered Institute of Purchasing and Supply’s construction PMI, building levels fell to 36.7 last month, from 38.8 in June. Any reading below 50 means the sector [...]
Why Brussels red tape is threatening our credit market August 5, 2008 When markets hit turbulent times, we naturally look to regulators to provide stability and to restore confidence. Good regulation can be a real strength – I believe that the UK’s world-class regulatory regime contributes enormously to London’s ongoing success. The best regulation comes about through dialogue and consultation with practitioners. This is why last week [...]
Construction plunges August 5, 2008 Construction activity fell to a record low in July, driven by the collapse of the housing market and the stuttering economy, the latest survey showed yesterday. According to the Chartered Institute of Purchasing and Supply’s construction PMI, building levels fell to 36.7 last month, from 38.8 in June. Any reading below 50 means the sector [...]
MPC decision on knife edge August 4, 2008 The Bank of England Monetary Policy Committee’s (MPC) decision on interest rates on Thursday will be a close call according to leading analysts who believe a hike is possible. The nine-member committee, which has left rates on hold at 5 per cent for the past three months, was split three ways in July with the [...]
It is still not the time to be buying into retail stocks July 31, 2008 The European General Retail sector has fallen by about 25 per cent so far this year. But does this sharp decline in price make retail shares a good buy? We think that there are a variety of reasons to remain wary. The first reason is a depressed outlook for consumer demand. With continued worries about [...]
Trade talks end with no agreement July 30, 2008 World Trade talks in Doha collapsed yesterday, after the US, China and India failed to agree a compromise on the kind of import tariffs poorer countries could raise on farm products. According to a spokesman for European trade commissioner Peter Mandleson, the failure of the talks was a “massive blow to confidence in the global [...]
UK recession looms July 30, 2008 The UK is drifting into a recession, leading economists warned yesterday, as approvals for British home loans in June hit their lowest level since records began and retail sales fell at their fastest pace in at least a quarter of a century. Home mortgage approvals, loans that are agreed but not yet made, fell in [...]
Recession is certain – City July 28, 2008 Analysts have declared a UK recession inevitable following official data showing that economic growth in the second quarter of this year slumped to its weakest rate in three years. The Office for National Statistics revealed last week that GDP rose by just 0.2 per cent in the three months to June, bringing the annual rate [...]