This is how sterling’s unstoppable slide will affect UK house prices October 12, 2016 After a freak six per cent fall when markets opened in Asia last week, sterling is in free fall. The fall obviously has implications for people going abroad – but what about people here at home? We asked the experts what the flash crash will do to UK house prices. Read more: This is how the [...]
UK manufacturing PMI falls to 53.4 but shows relatively confident sector ahead of leaving EU December 1, 2016 Confidence in the UK’s manufacturing sector posted a surprise fall in November, as the weak pound exerted pressure on manufacturers buying materials from abroad. The manufacturing purchasing managers’ index (PMI) fell to 53.4, down 0.8 points since last month, although rates of expansion are still "solid", according to survey compiler IHS Markit. This was the second [...]
The dramatic fall in sterling is a cause for celebration – not depression October 6, 2016 Sterling is now trading at well under $1.30 to the pound, the lowest it has been for 31 years. Is this a cause for gloom or celebration? Most people seem to be depressed by what is happening, but they ought to be rejoicing. The UK’s exchange rate rose massively during the monetarist era in the [...]
Prices on the rise: What next for inflation? February 23, 2017 Inflation is waking up Most of the major central banks are predicting rises in inflation. Price pressure was already beginning to build in 2016 as the world economy showed signs of improvement. Now the policies of a new Trump administration – lower taxes and increased government spending – could increase that pressure. The expectation among [...]
As UK manufacturing output hits a two-year high, will Brexit rebalance the economy away from services? October 3, 2016 Damian Hind, economic & social policy research fellow at Policy Exchange, says Yes. Brexit is not a magic wand but it does give us reasons to be optimistic. Increasing manufacturing output and rebalancing the UK economy away from services has been a long standing goal for policymakers. However, the UK’s high exchange rate made this very [...]
Foreign exchange trading flops as London loses market share, according to the Bank for International Settlements September 1, 2016 Foreign exchange trading around the world has fallen over the course of three years, with London in particular losing market share. Global foreign exchange trading averaged $5.1 trillion (£3.8 trillion) a day in April, down from $5.4 trillion for the same month in 2013. It is the first time a fall has been recorded by the Bank for International Settlement's [...]
Save money on international transfers February 25, 2016 Stock markets have provided an interesting if not slightly stormy narrative to the beginning of 2016, and many City commentators are forecasting more of the volatility that was so prevalent during last year. If this proves to be the case currency markets are likely to be a bit choppy too. Sterling weakness Just like stock [...]
Sir Charlie Bean: London will lose its foreign exchange crown after Brexit September 7, 2016 The City of London will be stripped of its status as the world's premier foreign exchange centre once the UK leaves the EU, a former Bank of England deputy governor has warned. Sir Charlie Bean, who sat on the Bank's rate-setting Monetary Policy Committee (MPC) for 14 years between 2000 and 2014, told peers he [...]
Easyjet cuts dividend as profits nosedive following Brexit vote November 15, 2016 Profits tumbled at Easyjet during the 2016 financial year, with the budget airline blaming a combination of the EU referendum result and a number of terror attacks across Europe over the last 18 months. The figures Profit before tax dropped 27.9 per cent to £495m from £686m in 2015. Basic earnings per share declined by [...]
Are iPhones about to become a bargaining chip in Trump’s China trade talks? November 14, 2016 "Making things difficult for China politically will do him no good." That was the gist of an op-ed column in a state run newspaper in China yesterday, which amounted to a threat to take action against any measures on trade with China put forward by Trump: "China will take a tit-for-tat approach then." And iPhones could [...]