UK retail sales unexpectedly surges 2.3% in April, hits 8-month high

A surprise surge in retail sales in April helped push the pound to its highest level in eight months as Britain’s consumers shrugged off concerns over falling living standards. Warm weather and the Easter holidays encouraged shoppers back onto UK high streets, with retail sales up 2.3% over the month according to the Office for National Statistics. It was more than double the 1% rise forecast by economists, and the biggest monthly rise since January 2016…

Trickle of jobs leaving Brexit UK has yet to turn into a flood

The trickle of jobs leaving Brexit Britain has yet to turn into a flood. Several big financial services firms have announced they will move about 9,000 jobs out of the country in order to safeguard their business once the U.K. leaves the European Union. That is not yet showing up in employment data. The jobless rate was just 4.6% in the three months to March 31, according to data published Wednesday…

‘Wannacry’ ransomware attack estimated at $4 billion in losses

Global financial and economic losses from the “WannaCry” attack that crippled computers in at least 150 countries could swell into the billions of dollars, making it one of the most damaging incidents involving so-called ransomware. Cyber risk modeling firm Cyence estimates the potential costs from the hack at $4 billion, while other groups predict losses would be in the hundreds of millions…

G7 leaders pledge stronger cooperation against cyber crime, renew FX pledges

Financial leaders of seven leading world economies pledged stronger cooperation against cyber crime on Saturday and not to use foreign exchange to gain competitive advantage, but stuck to their cautious wording on trade, their final communique showed. Finance ministers and central bank governors from the United States, Canada, Japan, France, Germany, Italy and Britain met in the Italian city of Bari to discuss the world economy, combating terrorist funding, cyber security and taxes…

UK workers to face rising unemployment, falling real pay over Brexit

British workers should brace themselves for rising unemployment and falling real pay in the year ahead as the impact of a Brexit slowdown is increasingly felt in the jobs market, reports have warned. The era of rapidly increasing employment is over, according to the forecasting group EY Item Club, which on Monday predicted the unemployment rate will rise from 4.7% now to 5.4% in 2018 and 5.8% in 2019…

BOE warns of near-term squeeze on consumers as result of Brexit

The Bank of England has warned households that living standards will fall this year as the effect of the Brexit vote works its way through to higher prices and meagre pay deals. Presenting a sober assessment of the economic outlook just weeks before the general election on 8 June, the Bank’s governor Mark Carney predicted living standards could start to recover in 2018 but , in the meantime, inflation would be higher than pay growth this year making it a “more challenging time” for households…

G7 finance chiefs pressed U.S. not to break global consensus in trade, financial regulations

Finance chiefs from some of the world’s richest nations began a two-day meeting in Italy on Friday, with Europe, Japan and Canada hoping to come away with a clearer picture of U.S. President Donald Trump’s plans on important policies. Inequality, international tax rules, cyber security and blocking the funding of terrorism are the focus of the official agenda for Group of Seven finance ministers and central bankers who are meeting in the Adriatic port city…

Eurozone expanded by 0.5% in first quarter while Brexit U.K. posted a 0.3% growth

Here’s a surprise: Europe is growing faster than Brexit Britain. The 19 economies that use the euro — aka the eurozone — expanded by 0.5% in the first three months of 2017 over the previous quarter. That’s stronger than the equivalent 0.3% rate posted by the U.K. The new data might prove unsettling to Brits, some of whom argued that the U.K. should break away from the European Union because its regulations and politics were preventing the country from reaching its full economic potential…

EU hopes to agree on formula to calculate what London owes for Brexit

The European Union does not want a blank cheque from Britain for leaving the EU, but hopes to agree by November on a formula to calculate what London owes when it leaves the bloc, chief EU negotiator Michel Barnier said on Wednesday. The Commission has previously mentioned a ballpark figure of 60 billion euros ($65.5 billion) that London would have to pay because of various commitments it made as an EU member…

May expects tough Brexit talks after EU leaders agreed stiff terms

LONDON (Reuters) – British Prime Minister Theresa May said on Sunday divorce talks with the European Union would be difficult, responding to the tough stance taken by EU leaders over the upcoming Brexit negotiations. “What this shows, and what some of the other comments we’ve seen coming from European leaders shows, is that there are going to be times when these negotiations are going to be tough,” May told the BBC a day after her EU peers agreed on demands they want met to avoid chaos when Britain leaves the bloc in 2019…

UK’s Q1 GDP grew by just 0.3% on weaker retail sales, reduced consumer spending

Britain’s economy grew by just 0.3% in the first quarter as higher prices discouraged consumers from spending. The quarter on quarter growth rate was the worst in a year, and a major slowdown from the 0.7% expansion posted in the final quarter of 2016. It was also a weaker performance than economists had forecast. The Office of National Statistics said that slower growth resulted from weaker retail sales, and reduced spending on key consumer items including hotel rooms and transportation…

Newsletter

Zero spam.