This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/live/2016/jul/18/uk-economy-firms-slash-spending-financial-news-brexit-arm-holdings-softbank-live

The article has changed 16 times. There is an RSS feed of changes available.

Version 12 Version 13
Bank of England policymaker says no rush to cut interest rates – business live Bank of England policymaker says no rush to cut interest rates – business live
(about 1 hour later)
4.56pm BST
16:56
It has ended up being a fairly uninspiring day on the markets, with only the £24bn deal to buy UK chip designer ARM giving a boost to leading shares. Tony Cross, market analyst at Trustnet Direct said:
There’s really only one story driving the rally in London today, and that’s the bid for ARM Holdings that’s been received from Japan’s SoftBank. Shares in the microchip company are up around 40% and if it hadn’t been for this news, the day’s performance would have been a whole lot more pedestrian.
Hawkish comments from BoE policymaker Martin Weale have also done little to buoy sentiment for UK stocks today, although the confidence this kind of message imparts has at least managed to cheer the housebuilders. At the other end of the board, TUI is markedly lower off the back of the weekend’s events in Turkey amidst fears of holidaymakers changing plans for the summer, whilst BHP Billiton is also struggling with word that a subsidiary has seen its debt rating downgraded to junk weighing here.
3.55pm BST3.55pm BST
15:5515:55
Oil prices are now down around 2% as new data showed a hike in US crude supplies.Oil prices are now down around 2% as new data showed a hike in US crude supplies.
Market data firm Genscape reported a stock build of 26,460 barrels last week at the Cushing, Oklahoma delivery hub, following a surge in US supplies of gasoline and distillate last week.Market data firm Genscape reported a stock build of 26,460 barrels last week at the Cushing, Oklahoma delivery hub, following a surge in US supplies of gasoline and distillate last week.
Brent crude is currently down $1.03 a barrel at $46.58 while West Texas Intermediate, the US benchmark, is down 2.1% at $44.98 a barrel.Brent crude is currently down $1.03 a barrel at $46.58 while West Texas Intermediate, the US benchmark, is down 2.1% at $44.98 a barrel.
3.28pm BST3.28pm BST
15:2815:28
Wall Street has edged ahead in early trading, continuing to head towards record highs but only gradually.Wall Street has edged ahead in early trading, continuing to head towards record highs but only gradually.
A drop in the oil price has taken the shine off some reasonable company results, with Bank of America beating expectations with its second quarter figures. The Dow Jones Industrial Average is currently up 0.12% at 18538, compared to its lifetime high of 18557.A drop in the oil price has taken the shine off some reasonable company results, with Bank of America beating expectations with its second quarter figures. The Dow Jones Industrial Average is currently up 0.12% at 18538, compared to its lifetime high of 18557.
3.14pm BST3.14pm BST
15:1415:14
The proposed takeover of ARM by Japan’s Softbank is an illustration of the consequences of volatility in the global currency markets, says John Haynes, head of research at Investec Wealth & Investment:The proposed takeover of ARM by Japan’s Softbank is an illustration of the consequences of volatility in the global currency markets, says John Haynes, head of research at Investec Wealth & Investment:
The announcement of an agreed bid for ARM Holdings by Softbank of Japan is the clearest illustration possible of the consequences of the current global currency volatility. Assuming the bid price, Softbank is paying over 25% less in yen terms compared to over a year ago to acquire this crown jewel of UK, and indeed global, intellectual property. The devaluation of sterling will continue to provide interesting investment opportunities for overseas investors to buy UK assets, including central London property, at a discount.The announcement of an agreed bid for ARM Holdings by Softbank of Japan is the clearest illustration possible of the consequences of the current global currency volatility. Assuming the bid price, Softbank is paying over 25% less in yen terms compared to over a year ago to acquire this crown jewel of UK, and indeed global, intellectual property. The devaluation of sterling will continue to provide interesting investment opportunities for overseas investors to buy UK assets, including central London property, at a discount.
The repercussions of the Brexit decision have yet to be felt. Over the next six to nine months we will see not only the direct effect on growth in the UK and Europe of this blow to business confidence, but also the impact it has on the political landscape. We should take some reassurance from recent market action as it was a high profile challenge to the resilience of the European financial system. The measures central banks have put in place to address outside “shocks” passed an important test, which is an endorsement of the progress made since the Eurozone crisis. Furthermore, as last week’s non-European data indicated, the world economic picture still has many bright spots. The US remains highly resilient whilst the picture in emerging markets is improving. If the last two weeks has taught us anything, it is that Britain is not as important to the world as the world is to Britain, hence the importance of retaining a global perspective when making investment decisions.The repercussions of the Brexit decision have yet to be felt. Over the next six to nine months we will see not only the direct effect on growth in the UK and Europe of this blow to business confidence, but also the impact it has on the political landscape. We should take some reassurance from recent market action as it was a high profile challenge to the resilience of the European financial system. The measures central banks have put in place to address outside “shocks” passed an important test, which is an endorsement of the progress made since the Eurozone crisis. Furthermore, as last week’s non-European data indicated, the world economic picture still has many bright spots. The US remains highly resilient whilst the picture in emerging markets is improving. If the last two weeks has taught us anything, it is that Britain is not as important to the world as the world is to Britain, hence the importance of retaining a global perspective when making investment decisions.
Our view prior to Brexit was that the world would “muddle through” and risk takers would be rewarded for their steely nerve. Our view now is the same, but there is less margin for error and a higher level of background political risk.Our view prior to Brexit was that the world would “muddle through” and risk takers would be rewarded for their steely nerve. Our view now is the same, but there is less margin for error and a higher level of background political risk.
2.45pm BST2.45pm BST
14:4514:45
Wells Fargo buys City office block development for £300mWells Fargo buys City office block development for £300m
In another sign that Britain remains open for business, US bank Wells Fargo is to buy an 11-storey office block development in the heart of the City in one of the largest real estate deals since the Brexit vote.It has bought the development - 33 Central at 33 King William Street - from property company HB Reavis. The deal will allow the US bank to consolidate its 850 London-based staff in a single location when construction is completed in the third quarter of 2017.In another sign that Britain remains open for business, US bank Wells Fargo is to buy an 11-storey office block development in the heart of the City in one of the largest real estate deals since the Brexit vote.It has bought the development - 33 Central at 33 King William Street - from property company HB Reavis. The deal will allow the US bank to consolidate its 850 London-based staff in a single location when construction is completed in the third quarter of 2017.
Terms of the deal were not revealed but a source told Reuters it was likely to be worth around £300m.Terms of the deal were not revealed but a source told Reuters it was likely to be worth around £300m.
UpdatedUpdated
at 2.46pm BSTat 2.46pm BST
1.34pm BST1.34pm BST
13:3413:34
Lunchtime summaryLunchtime summary
A quick recap.A quick recap.
One of the Bank of England’s top policymakers has dampened expectations that UK interest rates will be slashed to fresh record lows next month.One of the Bank of England’s top policymakers has dampened expectations that UK interest rates will be slashed to fresh record lows next month.
Martin Weale argued that Britain may not need immediate reassurance from the BoE, and argued that central bankers shouldn’t act as nursemaids to the markets’ every whim.Martin Weale argued that Britain may not need immediate reassurance from the BoE, and argued that central bankers shouldn’t act as nursemaids to the markets’ every whim.
Weale also predicted that the Brexit vote will make the country poorer, as firms slash spending and hiring.Weale also predicted that the Brexit vote will make the country poorer, as firms slash spending and hiring.
Related: Need for interest rate cut called into question by Bank of England expertRelated: Need for interest rate cut called into question by Bank of England expert
The warning came after a flurry of data showing that the Brexit vote has hurt the economy.The warning came after a flurry of data showing that the Brexit vote has hurt the economy.
Elsewhere...Elsewhere...
The UK government has thrown its backing behind Japanese corporation SoftBank’s £24bn takeover of the tech firm ARM Holdings.The UK government has thrown its backing behind Japanese corporation SoftBank’s £24bn takeover of the tech firm ARM Holdings.
Downing Street says the deal is in the national interest, while SoftBank’s CEO Masayoshi Son claims to have wowed Theresa May and Philip Hammond with his pledges to invest in the company and hire more staff.Downing Street says the deal is in the national interest, while SoftBank’s CEO Masayoshi Son claims to have wowed Theresa May and Philip Hammond with his pledges to invest in the company and hire more staff.
Cambridge’s MP, though, is worried...Cambridge’s MP, though, is worried...
Related: ARM Holdings to be sold to Japan's SoftBank for £24bnRelated: ARM Holdings to be sold to Japan's SoftBank for £24bn
Turkey’s stock market has now slumped by over 5%, following last week’s coup attempt.Turkey’s stock market has now slumped by over 5%, following last week’s coup attempt.
The Turkish lira has recovered some of Friday night’s heavy losses, as the Erdogan government asserts control.The Turkish lira has recovered some of Friday night’s heavy losses, as the Erdogan government asserts control.
Fawad Razaqzada, market analyst at Forex.com, predicts more lira losses:Fawad Razaqzada, market analyst at Forex.com, predicts more lira losses:
Over time, interest rates will need to be reduced significantly in order to stimulate demand in the economy. But at the same time, this will reduce the appeal of the lira as a higher yielding currency for foreign investors. So whichever way you look at it, the outlook for the Lira looks dire unfortunately.Over time, interest rates will need to be reduced significantly in order to stimulate demand in the economy. But at the same time, this will reduce the appeal of the lira as a higher yielding currency for foreign investors. So whichever way you look at it, the outlook for the Lira looks dire unfortunately.
UpdatedUpdated
at 1.39pm BSTat 1.39pm BST
1.20pm BST1.20pm BST
13:2013:20
Unsurprisingly, the Adam Smith Institute thinks overseas firms shouldn’t be blocked from buying UK ones.Unsurprisingly, the Adam Smith Institute thinks overseas firms shouldn’t be blocked from buying UK ones.
Their head of research, Ben Southwood, says it would be a blunder to consider blocking deals such as the SoftBank/ARM takeover.Their head of research, Ben Southwood, says it would be a blunder to consider blocking deals such as the SoftBank/ARM takeover.
Here’s his argument:Here’s his argument:
“Vetting all foreign bids for British firms represents yet another step on the risky road to ‘Italyification’ of the UK economy, where inefficient national champions are propped up and those putting money into our growth are scrutinised based on their national origin.“Vetting all foreign bids for British firms represents yet another step on the risky road to ‘Italyification’ of the UK economy, where inefficient national champions are propped up and those putting money into our growth are scrutinised based on their national origin.
“The fact you can later sell your business to a wider pool of investors—and attract capital from everywhere in the world—is a major driver behind British investment. It is also the foundation of Britain’s world-beating finance industry, which provides an outsized portion of UK output, and UK tax revenues.“The fact you can later sell your business to a wider pool of investors—and attract capital from everywhere in the world—is a major driver behind British investment. It is also the foundation of Britain’s world-beating finance industry, which provides an outsized portion of UK output, and UK tax revenues.
“British economic success has been based on openness to trade and investment for hundreds of years. Theresa May must not put an end to that.”“British economic success has been based on openness to trade and investment for hundreds of years. Theresa May must not put an end to that.”
Is he right? Well, ARM is hardly a failing company in need of some foreign expertise. It’s already hugely successful, providing key chips for the iPhone (for example). SoftBank are paying 43% over last week’s share price precisely because ARM is such a good company.Is he right? Well, ARM is hardly a failing company in need of some foreign expertise. It’s already hugely successful, providing key chips for the iPhone (for example). SoftBank are paying 43% over last week’s share price precisely because ARM is such a good company.
Also, SoftBank’s insistence that really wants ARM’s technology, and will help the company grow, should allay fears in Westminster.Also, SoftBank’s insistence that really wants ARM’s technology, and will help the company grow, should allay fears in Westminster.
1.00pm BST1.00pm BST
13:0013:00
The Labour MP for Cambridge doesn’t share the Conservative government’s enthusiasm for the £24bn takeover of ARM – Britain’s preeminent tech company.The Labour MP for Cambridge doesn’t share the Conservative government’s enthusiasm for the £24bn takeover of ARM – Britain’s preeminent tech company.
Daniel Zeichner is concerned about ARM’s long-term future under Japanese conglomerate SoftBank, and isn’t totally convinced by its pledge to double the UK workforce.Daniel Zeichner is concerned about ARM’s long-term future under Japanese conglomerate SoftBank, and isn’t totally convinced by its pledge to double the UK workforce.
He told ITV News that:He told ITV News that:
“Well of course the promises are great, but how are those promises going to be guaranteed? Do we know what will happen in 6 months or a year? Do we know much about SoftBank? And they seem to be making some pretty big deals across the world.“Well of course the promises are great, but how are those promises going to be guaranteed? Do we know what will happen in 6 months or a year? Do we know much about SoftBank? And they seem to be making some pretty big deals across the world.
This is a Cambridge success story upon which the future of the United Kingdom is probably depends because this is what we’re good at.”This is a Cambridge success story upon which the future of the United Kingdom is probably depends because this is what we’re good at.”
Cambridge MP cautious over ARM Holdings takeover https://t.co/D1FVsRRhPbCambridge MP cautious over ARM Holdings takeover https://t.co/D1FVsRRhPb
UpdatedUpdated
at 2.46pm BSTat 2.46pm BST
12.54pm BST12.54pm BST
12:5412:54
Holiday firm TUI is the worst-performing stock on the FSTE 100 so far today, shedding over 2%.Holiday firm TUI is the worst-performing stock on the FSTE 100 so far today, shedding over 2%.
Traders are calculating that the turmoil in Turkey is going to deter holidaymakers from jetting to its resorts; although recent terrorist attacks had already had an impact.Traders are calculating that the turmoil in Turkey is going to deter holidaymakers from jetting to its resorts; although recent terrorist attacks had already had an impact.
Tony Cross of Trustnet Direct explains:Tony Cross of Trustnet Direct explains:
TUI is also struggling with that news from Turkey likely to further disrupt travel to the country this summer, although there has been a shift in bookings by holidaymakers for some months now to resorts in the Western Mediterranean.TUI is also struggling with that news from Turkey likely to further disrupt travel to the country this summer, although there has been a shift in bookings by holidaymakers for some months now to resorts in the Western Mediterranean.
12.21pm BST12.21pm BST
12:2112:21
The shock Brexit vote has taken the world’s attention off other issues, such as the ongoing economic crisis in Greece.The shock Brexit vote has taken the world’s attention off other issues, such as the ongoing economic crisis in Greece.
But the eurozone’s most troubled member hasn’t gone away. And European Comissioner Pierre Moscovici has popped to Athens today, for high-level talks about its current bailout programme.But the eurozone’s most troubled member hasn’t gone away. And European Comissioner Pierre Moscovici has popped to Athens today, for high-level talks about its current bailout programme.
He’s met with prime minister Alexis Tsipras, and discussed the labour reforms and spending cuts that Greece needs to enforce, to get its next tranche of bailout funds (worth around €2.8bn).He’s met with prime minister Alexis Tsipras, and discussed the labour reforms and spending cuts that Greece needs to enforce, to get its next tranche of bailout funds (worth around €2.8bn).
11.58am BST11.58am BST
11:5811:58
Over in Downing Street, Theresa May’s spokeswoman has told lobby reporters that SoftBank’s takeover of ARM is in the national interest (that’s via Reuters)Over in Downing Street, Theresa May’s spokeswoman has told lobby reporters that SoftBank’s takeover of ARM is in the national interest (that’s via Reuters)
11.26am BST11.26am BST
11:2611:26
SoftBank CEO: UK government approve of ARM takeoverSoftBank CEO: UK government approve of ARM takeover
SoftBank’s CEO, Masayoshi Son, has denied that the Brexit vote prompted him to launch today’s massive £24bn takeover of UK chipmaker ARM.SoftBank’s CEO, Masayoshi Son, has denied that the Brexit vote prompted him to launch today’s massive £24bn takeover of UK chipmaker ARM.
Speaking to reporters in London, Son says the EU referendum did not affect his decision. He says SoftBank is determined to have a big role in the development of the Internet of Things -- the next major area of technology.Speaking to reporters in London, Son says the EU referendum did not affect his decision. He says SoftBank is determined to have a big role in the development of the Internet of Things -- the next major area of technology.
The FT’s Arash Massoudi is tweeting the key points:The FT’s Arash Massoudi is tweeting the key points:
MasaSon takes the stage at SoftBank presser. Just back from meeting UK Chancellor Hammond. pic.twitter.com/3GyO7YILFeMasaSon takes the stage at SoftBank presser. Just back from meeting UK Chancellor Hammond. pic.twitter.com/3GyO7YILFe
"One of the biggest paradigm shifts is coming." First wave was internet to PC. Then mobile. Next wave is internet in everything, Son says"One of the biggest paradigm shifts is coming." First wave was internet to PC. Then mobile. Next wave is internet in everything, Son says
Why is SoftBank doing deal? "Next big paradigm shift is coming in IoT...it will be a big opportunity for all of mankind and products used"Why is SoftBank doing deal? "Next big paradigm shift is coming in IoT...it will be a big opportunity for all of mankind and products used"
Son also declared that Britain’s new political masters are impressed by the deal - and his pledge to double ARM’s UK workforce.Son also declared that Britain’s new political masters are impressed by the deal - and his pledge to double ARM’s UK workforce.
Son: I presented assurances abt HQ, jobs, investment. "The PM and Chancellor said Wow. That's good!"Son: I presented assurances abt HQ, jobs, investment. "The PM and Chancellor said Wow. That's good!"
11.08am BST11.08am BST
11:0811:08
SocGen: Top London house prices could halve due to BrexitSocGen: Top London house prices could halve due to Brexit
Readers with expensive houses in the heart of London should take a deep breath, and stay sitting down.Readers with expensive houses in the heart of London should take a deep breath, and stay sitting down.
French bank Societe Generale has predicted that house prices in the capital could plunge by over 30%, due to the vote to leave the European Union.French bank Societe Generale has predicted that house prices in the capital could plunge by over 30%, due to the vote to leave the European Union.
That’s based on the idea that highly paid City workers will be forced out of London, if Britain loses access to the single market.That’s based on the idea that highly paid City workers will be forced out of London, if Britain loses access to the single market.
That would end the ‘passporting’ which lets banks in the UK sell services across the EU, and mean banks have to shift overseas.That would end the ‘passporting’ which lets banks in the UK sell services across the EU, and mean banks have to shift overseas.
SocGen analyst Marc Mozzi explains the gloomy prognosis:SocGen analyst Marc Mozzi explains the gloomy prognosis:
“While in recent stress tests, the major U.K. banks were assessed with declines of around 30 percent in commercial real estate prices, we fear that London residential could experience an even more severe downturn.“While in recent stress tests, the major U.K. banks were assessed with declines of around 30 percent in commercial real estate prices, we fear that London residential could experience an even more severe downturn.
“Brexit will damage the U.K. economy, and some companies will almost certainly have to relocate parts of their business to retain access to the EU single market.”“Brexit will damage the U.K. economy, and some companies will almost certainly have to relocate parts of their business to retain access to the EU single market.”
Whoa. SocGen: house prices in London's most expensive areas could halve in the wake of Brexit pic.twitter.com/YHHjvAgaTZWhoa. SocGen: house prices in London's most expensive areas could halve in the wake of Brexit pic.twitter.com/YHHjvAgaTZ
10.25am BST10.25am BST
10:2510:25
Weale speech: What the experts sayWeale speech: What the experts say
Jeremy Cook, chief economist at World First, reckons Martin Weale may decline to support an interest rate cut in August:Jeremy Cook, chief economist at World First, reckons Martin Weale may decline to support an interest rate cut in August:
*WEALE: BOE SHOULD WAIT FOR FIRMER EVIDENCE BEFORE POLICY CHANGE - rate cut abstention in August?*WEALE: BOE SHOULD WAIT FOR FIRMER EVIDENCE BEFORE POLICY CHANGE - rate cut abstention in August?
Sky’s Ed Conway isn’t too surprised; Weale is one of the more hawkish MPC members.Sky’s Ed Conway isn’t too surprised; Weale is one of the more hawkish MPC members.
Note the MPC minutes said “most” MPC members thought policy should be loosened in Aug. Not all. So Weale’s relative hawkishness not a shockNote the MPC minutes said “most” MPC members thought policy should be loosened in Aug. Not all. So Weale’s relative hawkishness not a shock
Buzzfeed’s Simon Neville flags up that the rapid appointment of Theresa May as prime minister may calm the situation:Buzzfeed’s Simon Neville flags up that the rapid appointment of Theresa May as prime minister may calm the situation:
Martin Weale says: "If I did want to read the tea leaves, investors are expecting the economy to be a bit weaker than beforehand"Martin Weale says: "If I did want to read the tea leaves, investors are expecting the economy to be a bit weaker than beforehand"
Weale suggesting the alarm immediately after the referendum result could have been allayed now the political vacuum has been removedWeale suggesting the alarm immediately after the referendum result could have been allayed now the political vacuum has been removed
10.16am BST10.16am BST
10:1610:16
Weale: Our incomes will be lower because of BrexitWeale: Our incomes will be lower because of Brexit
Martin Weale has also warned that the Brexit vote will make the UK population poorer.Martin Weale has also warned that the Brexit vote will make the UK population poorer.
The Bank of England rate-setter tells his audience in London that:The Bank of England rate-setter tells his audience in London that:
My own view is that, despite any savings resulting from a lower contribution to the EU budget, the nation’s income, and thus people’s incomes, are likely to be reduced as a result of the choice made on 23rd June.My own view is that, despite any savings resulting from a lower contribution to the EU budget, the nation’s income, and thus people’s incomes, are likely to be reduced as a result of the choice made on 23rd June.
Weale is concerned that Britain may not retain full access to the single market, which has delivered useful economies of scale.Weale is concerned that Britain may not retain full access to the single market, which has delivered useful economies of scale.
A failure to retain them would amount to a worsening of Britain’s supply conditions reducing both productivity and household incomes. International competition may also have had the effect of stimulating productivity improvements in domestic firms.A failure to retain them would amount to a worsening of Britain’s supply conditions reducing both productivity and household incomes. International competition may also have had the effect of stimulating productivity improvements in domestic firms.
He also warns that everyone could suffer, if London’s financial sector takes a hit (perhaps because banks are forced to move operations into the EU):He also warns that everyone could suffer, if London’s financial sector takes a hit (perhaps because banks are forced to move operations into the EU):
Should life become harder for the financial sector then....that may fall disproportionately on London and the South-East.Should life become harder for the financial sector then....that may fall disproportionately on London and the South-East.
But, if taxable capacity declines disproportionately as a result, the effects of this on people’s incomes will be spread across the country more evenly than the effects on output.But, if taxable capacity declines disproportionately as a result, the effects of this on people’s incomes will be spread across the country more evenly than the effects on output.
He also produces these two charts, showing how UK business confidence has declined in the last few weeks.He also produces these two charts, showing how UK business confidence has declined in the last few weeks.
9.59am BST9.59am BST
09:5909:59
BoE policymaker says interest rates may not be cut next monthBoE policymaker says interest rates may not be cut next month
Bank of England policymaker Martin Weale has just fired a warning shot at the City, saying interest rates might not be cut in August.Bank of England policymaker Martin Weale has just fired a warning shot at the City, saying interest rates might not be cut in August.
Speaking in London, Weale revealed that he is not convinced - yet anyway - that rates need to be slashed from 0.5% to fresh record lows to calm Brexit fears.Speaking in London, Weale revealed that he is not convinced - yet anyway - that rates need to be slashed from 0.5% to fresh record lows to calm Brexit fears.
Weale (who has previously voted to raise interest rates), says: the Bank shouldn’t be worried about disappointing the markets.Weale (who has previously voted to raise interest rates), says: the Bank shouldn’t be worried about disappointing the markets.
The Old Lady of Threadneedle Street is not a nurse to markets.The Old Lady of Threadneedle Street is not a nurse to markets.
People who trade in markets know that the Monetary Policy Committee sets policy month by month in the way that its members think appropriate. It does sometimes, as we did in our July meeting, give an indication of where policy may go in the future. But that is no more than the best judgement at the time and not in any sense a commitment; the public understand that.People who trade in markets know that the Monetary Policy Committee sets policy month by month in the way that its members think appropriate. It does sometimes, as we did in our July meeting, give an indication of where policy may go in the future. But that is no more than the best judgement at the time and not in any sense a commitment; the public understand that.
Weale also argues that the Bank doesn’t need to act early to reassure households and businesses.Weale also argues that the Bank doesn’t need to act early to reassure households and businesses.
In contrast to the experience of 2008, I do not have any sense that either consumers or businesses are panic-struck and, as I observed, there have been no material signs of financial panic.In contrast to the experience of 2008, I do not have any sense that either consumers or businesses are panic-struck and, as I observed, there have been no material signs of financial panic.
Martin Weale giving his final major speech as an MPC member. Doesn’t sound like he’ll be voting for a cut next month pic.twitter.com/TamfZKPKD6Martin Weale giving his final major speech as an MPC member. Doesn’t sound like he’ll be voting for a cut next month pic.twitter.com/TamfZKPKD6
Last week, the Bank of England surprised many economists by voting to leave interest rates on hold. The minutes of the meeting showed that many members of its monetary policy committee expect to agree on a new stimulus package in August.Last week, the Bank of England surprised many economists by voting to leave interest rates on hold. The minutes of the meeting showed that many members of its monetary policy committee expect to agree on a new stimulus package in August.
However, that might not necessarily include a rate cut. The MPC could vote to boost quantitative easing (buying bonds from banks with newly created money), or launch new measures to encourage banks to lend to businesses and consumers.However, that might not necessarily include a rate cut. The MPC could vote to boost quantitative easing (buying bonds from banks with newly created money), or launch new measures to encourage banks to lend to businesses and consumers.
#Weale (largely hawkish) indicates not sure will vote for #BOE #interest #rate cut at his final #MPC meeting in Aug https://t.co/R85upKydVX#Weale (largely hawkish) indicates not sure will vote for #BOE #interest #rate cut at his final #MPC meeting in Aug https://t.co/R85upKydVX