Federal Reserve Chairman Jerome Powell is leading his colleagues to cut interest rates this week for the first time since 2008, even though the economy looks healthy, partly because it isn’t behaving as expected. Both inflation and market-determined interest rates are still lower than some of their models would have forecast, given years of strong hiring and solid economic growth. These... … [Read more...] about Why the Fed Is Cutting Rates When the Economy Looks Good
"The campaign is over and the work begins," - declared Boris Johnson, promising to energise the country. How will he energise the economy, which has fallen from the top to the bottom of the league of G7 leading economies since the Brexit vote? UK's Office for Budget Responsibility warned that a no-deal Brexit would push unemployment above 5% , send house prices tumbling by around 10% and finally would plunge Britain into a recession that would shrink the economy by 2% next year. The National Institute of Economic and Social Research says the economy may already be in recession. Several business groups have rushed to release their advice for the new PM - to bring certainty and, ideally, an orderly Brexit. Rating agency Moody's has warned that Boris Johnson's win increases the risk of a no-deal Brexit. The International Monetary Fund released its latest economic outlook. It now expects the UK's economy to expand by 1.3 % in 2019. But this forecast assumes an orderly Brexit followed by a … [Read more...] about How will Boris Johnson ‘energise’ the economy?
On 23 June 2016, the UK public voted on whether or not to stay in the European Union (EU). Many expected the UK to remain in the EU, but by a majority of 52% to 48% the Leave campaign won. The UK was scheduled to leave the EU at 23:00 UK time on 29 March 2019. However, after the UK parliament failed to approve the Withdrawal Agreement, it was granted an extension with a new deadline set for 31 October 2019. Below is a timeline of crucial dates along the road to Brexit and six charts showing how the UK economy and financial markets have fared over the past three years. The economy Azad Zangana, Senior European Economist and Strategist said while the UK economy has remained relatively stable through a turbulent period, real risks remain on the horizon. “UK economic growth bounced back at the start of 2019 but still remains sluggish. Having slowed markedly in the final quarter of 2018 the UK economy grew 0.5% for the first three months of 2019. “Growth was helped by … [Read more...] about Brexit three years on: markets and the economy in six charts
Some figures are more alarming than others. A 24pc drop in any sector of the economy is likely to provoke concern, particularly if it follows headlines about thousands of job losses. April's painful decline of almost a quarter in car production compared with March - one of the biggest contractions recorded by the Office for National Statistics in any sector - follows Ford's decision to close its Bridgend engine plant that was announced last week. Some argue that Brexit is to blame for the UK car sector's decline, while others point to the wider decline of the industry worldwide amid growing US-China trade tensions. The reality is likely to be a combination of both - along with some scheduled shutdowns. The economy contracted by 0.4pc in April, according to official data, largely driven by stagnant services growth and a 3.9pc fall in manufacturing - the worst decline for factories since 2002. This marks an “awful quarter”, says Samuel Tombs of Pantheon … [Read more...] about Can the economy recover from its ‘Brexit hangover’?
Translink 'contributes' £185m to the economy BelfastTelegraph.co.uk Public transport company Translink makes an annual contribution of £185m to the Northern Ireland economy, according to a new report. https://www.belfasttelegraph.co.uk/business/northern-ireland/translink-contributes-185m-to-the-economy-38180500.html https://www.belfasttelegraph.co.uk/news/northern-ireland/article38180944.ece/6e573/AUTOCROP/h342/Translink.jpg Email Public transport company Translink makes an annual contribution of £185m to the Northern Ireland economy, according to a new report. Translink, which operates bus and train public transport, launched the economic impact report by business advisory firm Grant Thornton to promote Bus + Train Week. Grant Thornton economist Andrew Webb also said Translink accounted for over 6,000 direct and indirect jobs in Northern Ireland. That gave the company a total Gross Value Added (GVA) of over £185m every year. And it identified an average … [Read more...] about Translink ‘contributes’ £185m to the economy