Apocalypse now? How should policymakers talk about inflation?

By Gareth Jones The Governor of the Bank of England, Andrew Bailey, faced a significant backlash from government ministers today over his comments in front of the Treasury Select Committee yesterday, where he described the rises in food prices as “apocalyptic” and warned that households face a “very big real income shock” as inflation is…

What fears of a Russian invasion of Ukraine could mean for the UK economy

By Robyn Evans More than 100,000 Russian troops have amassed at Ukraine’s border and whilst Russia continues to deny it has any intention of invading, warnings from Washington and London continue to intensify. Notwithstanding the human cost of a potential invasion, the crisis is already having a significant impact. US and European stocks fell in…

Why is the PE $ still so disliked by UK media?

By Clotilde Gros Since the start of the year, private equity firms have announced 124 deals for UK companies (both takeovers and minority stakes) with a combined value of £41.5bn (source: Dealogic). That was the highest value of deals by this point in the year since the data company started tracking transactions in 2005.  That is…

How crypto got a global status

By Ian Silvera Bitcoin isn’t yet a teenager. It turned 12 in January, having been created in the aftermath of the 2008 financial crisis, with The Times headline “Chancellor on Brink of Second Bailout for Banks” time stamped inside the first (genesis) block in 2009. It didn’t really gain much traction beyond Californian-based boffins until…

Economy bouncing back, but not yet all the way back

By Fraser Raleigh The UK economy took another step towards recovery today, with the news that GDP increased by 4.8% between April and June. The figures for the second quarter were driven by an increase in consumer spending, as lockdown restrictions across the UK were gradually eased and the economy re-opened over the spring and…

Is continued Quantitative Easing stoking the inflationary fire?

By George Esmond Easing coronavirus restrictions may be the country’s main concern, but there is a monetary worry that is the primary cause of unease for a number of senior economists. This week the Economic Affairs Committee for the House of Lords released its latest report under the pejorative headline – Quantitative Easing (QE): A…

Quantitative Easing – universal panacea or addictive painkiller?

By Adam Lloyd In November the Bank of England (BoE) announced a further £150 billion of Quantitative Easing as part of the wider economic response to the pandemic, taking the total amount of QE since the financial crisis to a whopping £895 billion. That is the amount of freshly printed money that has been specifically…

Who pays for Lockdown?

By Adam Lloyd, Capital Markets The economic impact of the lockdown has been profound with the unemployment rate growing to 4.5% in the three months to August. According to the ONS, an estimated 1.5 million people were unemployed between June and August and the outlook is looking pretty grim with some forecasts suggesting that unemployment…

Death, taxes, damned lies and statistics

By Charles Ansdell, Managing Partner Americans are always fascinated by Britain’s choice to elect Clement Atlee over Winston Churchill at the end of WWII. How could Britain’s iconic war leader – voted the Greatest Ever Briton in 2002 by the eponymous TV series – be cast aside? But Clement Atlee was the man that Britain…