Sunday, 19 December 2010

Economics

The latest news, analysis and comment on the UK and global economy.

MORE ECONOMICS NEWS

Forecast for Europe not as icy as it appears

It is a fitting coincidence that my spin round the world's major markets over the past few weeks should return to Europe just as the cold snap bites again. Last week's thaw accompanied my look at the US, where recovery is slowly but surely getting under way.

18 Dec 2010

Alan Greenspan: 'US economy could grow 3.5pc next year'

Former Federal Reserve chairman Alan Greenspan has said that the US economy could grow by 3.5pc in 2011.

17 Dec 2010

Nouriel Roubini buys $5.5m home in New York

Leading US economist, who said last month that another 'disaster' will happen if US home values fall again and prime-mortgage defaults increase, has bought a $5.5m flat in New York.

17 Dec 2010

These mixed messages only hurt our economy

Telegraph View: What is needed now is for Mr Cameron and his colleagues to talk it up.

17 Dec 2010

US confidence rises as 2010 ends

American businesses are growing more confident about the outlook for the economy next year, according to a widely watched survey, despite the stubbornly high level of unemployment.

17 Dec 2010

Irish downgrade hits world markets

World markets fell as investors took to the sidelines after a sharp downgrade of Irish debt highlighted the lack of unity in Europe over how to deal with the escalating debt crisis.

17 Dec 2010

Portugal and Spain seen as riskier after Irish downgrade

German debt prices rose, while other eurozone countries' bond prices fell, after Ireland's credit rating was cut and EU leaders took no immediate steps to deal with the debt crisis.

17 Dec 2010

UK consumer confidence drops ahead of spending cuts

Consumer confidence has fallen to its lowest level in almost two years, on the expectation that the economy will weaken over the next six months and spending cuts will make it harder to find a job.

17 Dec 2010

EU agrees to create permanent financial saftety net

European Union leaders have agreed to create a permanent financial safety net from 2013 and the European Central Bank moved to increase its firepower to fight the debt crisis that has rocked the euro zone.

17 Dec 2010

'Don't overreact to high inflation, says Posen

The Bank of England should not 'overreact' to inflation remaining over target, according to policy maker Adam Posen, despite the pace of price rises hitting a six-month high.

17 Dec 2010

Five key risks to the UK

The Bank of England has highlighted five keys risks facing the British economy in its latest bi-annual Financial Stability Report. We list them.

17 Dec 2010

ECB doubles capital base to stem Spanish crisis

The ECB is to double its capital base to cope with 'credit risk' stemming from the eurozone debt crisis, paving the way for direct action to shore up the Spanish debt markets if necessary.

17 Dec 2010

It's reassuring that regulators are still worried about financial stability

The fact remains that the old risks have not all gone away, and upon close examination there are some new ones to fret about, too

17 Dec 2010

FedEx raises profit forecast for 2011

Delivery company FedEx increased its profit forecast for next year and urged Congress to pass a package of tax cuts that is expected to support the US recovery.

16 Dec 2010

Crisis of confidence in Threadneedle Street

Rising inflation is no surprise, so why did the Bank of England fail to predict it, asks Jeremy Warner.

16 Dec 2010

Inflation expectations hit two-year high

Inflation expectations have hit their highest level in more than two years, heaping fresh pressure on the Bank of England to raise interest rates.

16 Dec 2010

Spanish debt auction pushes borrowing costs to decade high

Spain had to pay a high price to get it last bond sale of the year away, with borrowing costs hitting a ten-year high as investors stayed on the sidelines until EU authorities clarified their approach to the Spanish crisis.

16 Dec 2010

EU laws must be copied out to avoid 'gold-plating'

Civil servants must 'copy out' European directives into UK law rather than trying to interpret them to avoid so-called 'gold plating' of the rules, the Government has said.

16 Dec 2010

Financial services sector pays most tax to UK Government

The financial services industry regained its place as the largest individual contributor to Government finances in the latest financial year, according to figures from the City of London Corporation.

16 Dec 2010

Coalition government hires 31 business directors

More than 40pc of the business leaders appointed to help the Government's overhaul of Whitehall are women, it was revealed on Wednesday.

16 Dec 2010

Germany defiant as Europe suffers

Germany has refused to give any ground on Europe's rescue machinery despite the escalating political and economic crisis across much of the eurozone periphery.

16 Dec 2010

UK 'faces 20-year-high inflation'

Britain’s biggest charitable investor has warned that the UK faces 'levels of inflation not experienced for more than 20 years' because of monetary expansion policies.

16 Dec 2010

Government revenues near 20-year low

Governments' tax revenues are close to a 20-year low, according to the Organisation for Economic Cooperation and Development (OECD), raising the prospect of widespread and painful tax rises.

16 Dec 2010

To secure Britain's future, we need at least four more good years

The Governor of the Bank of England's Christmas drinks party is always a good chance to gauge the mood among bankers and economists.

16 Dec 2010

Pimco raises holdings of US government-related debt

Bill Gross, who runs the world’s biggest bond fund at Pimco, last month raised holdings of US government-related debt for the first time since June.

15 Dec 2010