Growth in Developed Economies Slowed in Third Quarter, OECD Says

Economic growth in developed countries slowed in the three months to September, but remains on course for a pickup in 2017 overall. The Organization for Economic Cooperation and Development said Monday the combined economic output of its 35 members was 0.6% higher in the third quarter than in the three months through June. This was a slowdown from the 0.8% growth recorded in the second quarter…

Global stocks still on track for second weekly fall

NEW YORK (Reuters) – The U.S. dollar was lower on Friday along with Wall Street stocks as investors pulled back from technology stocks and were skeptical President Donald Trump’s Republican party would succeed in its efforts at U.S. tax reform. U.S. Treasury yields edged lower, in line with declines in U.S. stock indexes and German 10-year bond yields, as risk appetites faded. The yield curve continued to flatten after strong U.S. housing starts data for October…

German growth data boosts euro; World stocks, oil prices fall

NEW YORK (Reuters) – The euro was set for its strongest session in more than four months on Tuesday, boosted by strong economic growth in Germany, but world stocks fell for the fourth straight day as oil prices fell and investors worried about U.S. tax reform. U.S. Treasury two-year note yields climbed to a nine-year peak while long-dated debt yields fell, flattening the yield curve flattened for a second straight day, while investors braced for a Federal Reserve December rate hike…

Top four central bank chiefs defend stimulus policies

FRANKFURT – The leaders of four major central banks on Tuesday defended their sweeping stimulus policies and discussed how words themselves have become a vital tool to guide advanced economies out of the financial-crisis era. The rare joint appearance in Frankfurt by the heads of the Federal Reserve, European Central Bank, Bank of Japan and Bank of England comes as several of their governors prepare to step down, notably Fed Chairwoman Janet Yellen in February…

UK full-time employment drops, job vacancies also decline

Signs that Britain’s long employment boom has come to an end emerged yesterday as official figures showed a drop in the number of people in work, a fall in full-time employment and a decline in the number of job vacancies. After a record-breaking run, the The Office for National Statistics (ONS) reported the first fall in employment since the immediate aftermath of last year’s Brexit vote…

UK consumer spending shrinks by 2% in October

UK retailers had a bleak October as shoppers shunned stores and cut back on spending, raising fears over the health of the UK economy. Consumer spending shrank by 2% in October, the fastest year-on-year decline in four years, according to credit card provider Visa. This is the fifth monthly decline in six months, and was driven by a 5% decline in spending on the high street. Clothing and footwear sales slumped by 9%, the biggest year-on-year decline since Visa started its survey in 2009…

Brexit Brain Drain: Professionals Wave Goodbye, Head to Europe

LONDON — After 22 years in Britain, Anna Bea Götz packed up her life and moved back to Germany. She had arrived as a 16-year-old student and always thought that one day she might leave. But it was Britain’s vote to leave the European Union that finally pushed Götz to go. Amid uncertainty about what rights and legal status citizens of 27 E.U. countries will have in the U.K. once it leaves the bloc in March 2019, Götz no longer felt secure enough to pursue her dream of buying and managing apartments…

BOE raises rates now when the risks feel more immediate

You wait 10 years for a rise in interest rates and, when the moment finally arrives, the timing feels completely arbitrary. An easier moment to make the move would have been the start of this year. The August 2016 cut from 0.5% to 0.25% was presented as an emergency measure to prevent a post-referendum recession. When the downturn didn’t arrive – GDP growth in the final quarter of 2016 was a strong 0.7% – it would have been logical to revert to 0.5%…

Central bankers on the move, but where’s the inflation?

LONDON (Reuters) – Now the Bank of England has raised interest rates for the first time in a decade, it is beyond doubt major central banks in industrialized economies are eager to shift away from ultra-easy policy. But the fact the decision was so contested both in and outside the BoE perhaps reveals more concern about the lack of inflation pressure than about Britain’s clear difficulty in trying to leave the European Union without a concrete plan…

U.K. hikes interest rates for first time in 10 years

U.K. interest rates are doing something they haven’t done in a decade: Going up. The Bank of England hiked its key rate on Thursday from a record low of 0.25% to 0.5%, a shift that economists widely expected. It’s the first time the central bank has increased the cost of borrowing since 2007, a move it says was needed to help control surging inflation. The pound was trading 1% lower against the dollar following the announcement…

Bank of England sees only gentle rate rises ahead after historic hike

LONDON (Reuters) – The Bank of England raised interest rates for the first time in more than 10 years on Thursday, but sterling slid after the central bank said it expected only “very gradual” further increases as Britain prepares to leave the European Union. The BoE’s nine rate-setters voted 7-2 to increase the Bank Rate to 0.50 percent from 0.25 percent, reversing an emergency cut made in August 2016 after the Brexit vote…

UK interest rate rise would not hit house prices, says Moody’s

The UK’s property market will take this week’s expected rise in interest rates in its stride, according to ratings agency Moody’s, but it warned that the outlook for the buy-to-let market has worsened significantly. The agency, which along with Standard & Poor’s was widely condemned for awarding triple-A ratings to sub-prime mortgage books before the 2008 financial crisis, said the British property market is more resilient than is widely believed…

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