How will Trumponomics impact the US economy in 2017?

How will the new presidency affect the US economy?With the ideological and political differences between the outgoing Obama administration and the incoming Trump regime a million miles apart, it looks as if barely a single policy will remain unaffected in the coming months – from public spending to international relations. So far, the markets have reacted positively to predictions of increased growth fuelled by pronouncements over deregulation, tax reforms and infrastructure spending. But, with Trumponomics set to remain a dominant influence in the coming months, observers will be closely monitoring whether Trump’s deeds match his words and forecasting how his administration will balance higher growth with spiralling inflation without plunging the country into a recession. Read more…

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Will President Trump boost the US economy?

Will President Trump boost the US economy?It seems as if the US economy may be set for an unexpected upturn as Trump prepares for presidency. The new Republican administration has pledged to ‘make America great again’ by putting its resources into boosting the economy which, together with expected trade restrictions is almost certain to fuel inflation above the average 2.2% of Obama’s second term. The economy may also get a boost from the deregulation of labour and environmental legislation. If there’s scope for economic expansion, Trump’s policies could kick-start growth and output and productivity could rise sharply, but as the economy approaches full capacity, inflation will soar. Read more…

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Central banks explore digital currency

Central banks ponder the introduction of digital currencyThe successful transition of crypto-currency bitcoin from experimental concept to globally accepted currency with a market value of more than $10 billion, is causing central banks to start exploring the potential of digital currencies for themselves. Research is at an early stage, but central banks – including those in Russia, Canada, the UK, Australia and China are assessing the risks and benefits of adopting a digital currency of their own. Further analysis needs to be done into how digital could affect a country’s economy and financial stability, and how systems could be put in place to defeat hackers, at the same time serving the needs of tens of millions of people. Read more…

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Oil prices soar as Opec deal nears agreement

Opec agrees deal to cut supplies in Vienna talksOil cartel Opec has agreed to cut supplies, causing crude prices to soar to the $50-a-barrel mark. Opec pumps around a third of the world’s oil, which makes the commitment to cut production by around 4% – the equivalent of 1.2m barrels a day – made headline news on the markets. Cartel members have been allowing output to rise over the last two years in a bid to damage the profits of US shale and other high-cost producers. Immediately after the news, the S&P 500’s oil and gas exploration and production index — mostly comprising US shale companies — rocketed 10.8 per, with almost all US energy companies benefiting from the outward ripples. Read more…

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Brexit and Trump elevate risks to banking sector

Global events including Brexit and Trump win exert pressure on banking sectorRecent political and economic events including Brexit, the US presidential election and China’s economic slowdown have created global uncertainty are creating significant risks for the global banking sector, according to leading ratings agency Standard & Poor. The agency’s global credit outlook for the banking sector in 2017 flags these and other factors as potential hurdles for the banking industry’s creditworthiness over the next twelve months, saying that more than half of the largest global banking systems face negative pressure – especially banks in Latin America and Asia Pacific. Read more…

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Yahoo under pressure over hacking and privacy fears

Yahoo under pressure from EU regulators over hacking and alleged email privacy breachYahoo under pressure from EU regulators over hacking and email privacy

It’s not been a great year for Yahoo. Following news of a large-scale account hack, perpetrated two years ago but only recently announced to the public, the company is now in hot water over its decision to scan clients’ email accounts on behalf of US authorities. European politicians have called on the European Commission (EC) to investigate the incident which could interrupt the progress of the transatlantic data sharing deal agreed earlier this year and is likely to touch a nerve with Europeans who fear mass surveillance by US. Read more…

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Sterling at risk of losing reserve currency status

Post-Brexit shocks to sterling have rocked the currency’s reserve currency statusPost-Brexit shocks to sterling have rocked the currency’s reserve currency status

After Britons voted narrowly to exit the European Union earlier this year, they may not have anticipated the effect on the country’s currency and financial reputation. But with sterling reaching its lowest value in 40 years and the country stripped of its Triple-A credit rating, there are also fears that its prized reserve currency status could be under threat, should it fail to secure continued access to the European single market, according to US ratings agency Standard & Poor. Read more…

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Post Title: US growth picks up in Q3

Figures show better-than-expected growth figures during Q3 of 2016Figures show better-than-expected growth figures during Q3 of 2016

Recent figures from the Commerce Department show that the pace of US growth up-ticked in the third quarter, reaching its highest rate in two years and offering support to forecasts of greater economic stability. The economy grew at a 2.9 percent annualised rate in the third quarter, topping predictions of just 2.6 percent and reflected a spike in exports as well as an increase in federal spending. However, consumption growth dropped back over the same period to half the rate of the previous quarter. Read more…

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Uber drivers win landmark case in UK

Tech firm Uber forced to review employment contractsTech firm Uber forced to review employment contracts

The gig economy in the UK has just been dealt a blow after an employment tribunal ruled that two workers for Uber had the right to be considered as employees and should be paid the national living wage as well as holiday and sick pay. The ride-hailing company had defended the case on the grounds that it was a tech platform and that its drivers were self-employed contractors. The case leaves Uber open to further claims and could pressure other companies to review the way staff are contracted and paid. Read more…

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Hard Brexit could result in British banking crisis

Head of Germany’s central bank warns that UK could lose its status as the financial centre of EuropeUK could lose its status as the financial centre of Europe

Since the UK’s vote to leave the European Union, there’s been no clear indication of how the British government intends to carry out the political and economic split. Article 50 of the Lisbon Treaty must be invoked before Brexit can begin but with the clock ticking on a two-year negotiation timetable as soon as the process is triggered, the prime minister seems reluctant to push the button too soon. Britain sells almost half of its exports via the single market. A ‘soft’ Brexit would minimise the economic impact on the UK but is unlikely to assuage the concerns of those who voted to reduce immigration. Read more…

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