Markets under pressure as ‘Trump bump’ falters

Global markets recede as the so-called ‘Trump bump’ runs out of steam Despite share prices climbing sharply on the back of last November’s surprise election victory by Donald Trump, the fabled ‘Trump bump’ appears to be running out of steam as Wall Street signals its disapproval over the president’s failure to secure support for his most prominent pre-election pledge. Trump’s disappointment over his inability to pass the repeal of Obamacare through Congress was mirrored by tumbling US shares, as the market wobbled over the prospect of the administration’s power to deliver on a raft of growth-boosting measures, including a comprehensive package of tax cuts. Read more…

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…

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…

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…

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…

IMF encourages global response to stimulate economic growth

The World Economic Outlook study by the IMF spotlights weaknesses in the global economyStudy by IMF spotlights weaknesses in global economy

The International Monetary Fund (IMF) has warned that free trade is being increasingly seen as something that benefits the wealthy and warn that help is needed for people whose job prospects have been damaged by globalisation. In a statement from the organisation’s half-yearly World Economic Outlook study, it spotlights weaknesses in the global economy as being largely responsible for the stalling of trade growth over the past few years. It also acknowledged that anti-trade feelings could harden further, given the current climate. Read more…

IMF have issued a warning over Eurozone growth following Brexit referendum

IMF signals economic slowdon in eurozone

IMF expresses fears over Eurozone growth

The result of the UK’s Brexit vote is damaging economic stability across the European Union. The International Monetary Fund (IMF) has downgraded growth outlook for the Eurozone and its managing director, Christine Lagarde, is warning of an economic slowdown as confidence dips and markets suffer increased volatility. GDP across the single currency bloc is only expected to grow by 1.6% this year, with a further drop to 1.4% in 2017. The IMF has put this down to the negative impact of the UK referendum and fears that the slowdown will have a knock-on effect in other economies, especially emerging markets. Read more…

Brexit fallout – the likely outcomes

Britons have narrowly voted to leave the European Union but what are the consequences?Britons have narrowly voted to leave the European Union but what are the consequences?

There was plenty of anxiety in the run-up to the UK referendum on its membership of the European Union, but few could have predicted the full impact of the shock decision to leave. In the event, more than 17 million Britons voted to withdraw from Brussels which has brought into sharp focus a debate about some of the likely outcomes. With issues ranging from the problems of economic instability to the possibility of a break-up of the union itself, it appears that the Brexit result could have much wider implications than originally thought. Read more…

Britain votes Brexit – what happens next?

In a shock result, Britons have narrowly voted to leave the European UnionAfter Britain’s historic vote to leave the EU, what are the implications?

The shock result of the UK’s referendum on EU membership is causing uncertainty across the world. On Thursday 23 June, more than 17 million Britons voted to exit from Brussels. Although formal negotiations will take two years to conclude, the response from the stock markets was swift with exchanges everywhere seeing an instant downturn, as well as flight from the pound. The country has been stripped of its triple-A credit rating. The prime minister stepped down and will leave it to his successor to enact Article 50 of the Lisbon Treaty which will begin the Brexit process. Read more…

Markets shocked as Britain votes to Brexit from the European Union

In a shock result, Britons have narrowly voted to leave the European UnionIn a shock result, Britons have narrowly voted to leave the European Union

After months of high-octane campaigning and angry deadlock between Westminster’s leading politicians, The United Kingdom has voted to end 43 years of European Union membership. It was a close-run referendum; in the weeks preceding, had been predicting a difference of just a few percentage points between the ‘Remain’ and ‘Leave’ sides. Despite Remain appearing to take a marginal lead, tense hours of voting on 23 June delivered a win for the Leave camp of 52%-48%. Read more…