The top seven changes from Carney’s report November 28, 2013 1 This is the first sign of tightening – or at least withdrawing stimulus – from the Bank of England since the crisis began, showing some parts of the economy heating up. 2 The Funding for Lending Scheme has been scrapped for mortgages. That means banks will no longer get access to cheap funding when [...]
Slowdown in US mortgage applications November 6, 2013 The number of mortgage applications in the US fell last week by seven per cent, according to the Mortgage Bankers Association (MBA). The fall came after a 6.4 per cent increase in applications the previous week and signifies, says Capital Economics, "further evidence of a moderation in the rate of the housing recovery." Ed Stansfield, [...]
Without major reforms French growth will continue to fall short says Capital Economics November 18, 2013 Without major reforms the French economy will continue to fall short of consensus forecasts, according to Capital Economics. The French economy contracted by 0.1 per cent in the third quarter, with exports and investment both falling. While French firms debt to relative to equity and financial assets is lower than the Eurozone average but the [...]
The devil is in the detail in the government’s plan to ringfence UK banks November 6, 2013 HOW often have you heard executives chuntering on about “red tape”? Sometimes, however, regulations affect people who don’t voice their concerns quite so loudly – customers. This is because the implications of such regulations are not always obvious, not least to the consumers or small businesses that would be affected. I have a few concerns [...]
Letters to the Editor – 24/10 – Energy prices, Best of Twitter October 23, 2013 Energy prices [Re: EDF nuclear subsidy is a naive gamble on the future price of carbon and gas, yesterday] Government support for nuclear is not a gamble on gas prices rising, it is a hedge against them doing so. Even at today’s power price, the impact on bills of new nuclear (indeed renewables) is a few [...]
2013 Christmas quiz – The Answers December 20, 2013 1. Between spring and autumn 2013, which of these countries received the largest upgrade to its 2013 GDP growth forecast from the IMF? a. Indiab. United Statesc. United Kingdom ANSWER – United Kingdom. In April, the IMF forecast the UK would grow by 0.7 per cent in 2013. By October, the IMF had raised this [...]
Our at-a-glance guide to Osborne’s mini-budget December 5, 2013 Growth up, borrowing down, yet the debt is still rising. Another raid on the banks, but shops to gain from reduced business rates THE UK ECONOMIC OUTLOOK● The Office for Budget Responsibility (OBR) has revised up its forecast for economic growth and revised down its prediction for inflation. It expects unemployment to drop quickly next [...]
Research shows huge gulf in UK jobs estimates October 22, 2013 THREE well-established surveys of the UK’s job market suggest that official figures may be overestimating UK employment by over a million jobs, according to research released by Markit last night. The huge divergence between estimates made by the Office for National Statistics (ONS) and a number of other sources has opened up since 2010. The gauges [...]
Nick Clegg’s guarantee for schools will damage standards in education October 21, 2013 SOMETIMES a minister will say something so straightforwardly ignorant, so uninformed of the history and facts of the issue, that I feel a kind of despair. A good example is Nick Clegg’s comments on schools this week. Clegg claims to have discovered the Holy Grail in state education: to provide a “guarantee” to “every parent” [...]
Manufacturers warn that rising energy bills may harm recovery September 15, 2013 THE UK Government must keep electricity prices low and cut regulatory red tape from green policies to keep the economic recovery on track, according to manufacturers’ organisation EEF. In a new industry analysis released today, EEF warned that a growing number of medium-sized businesses are facing rising costs that are out of line with their [...]