All the day’s economic and financial news, as Sir Jon Cunliffe says the timing of Britain’s first interest rate rise since 2007 is an “open question”
- BoE deputy governor: Economy has clearly slowed this year
- Coming up: Eurozone company growth report at 9am
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Sir Jon Cunliffe also warned European cities that they won’t knock London off its perch as the region’s financial centre, despite Brexit.
He told the Western Mail that some City banks will move operations over the Channel, or even the Atlantic, once Britain leaves the European Union.
We have an expertise in financial services and we have a critical mass of talent and deep knowledge and those sort of big economic agglomerations and economic activity exist because they add value and they reduce costs.
“It may be that some activities that are carried out in London have to move to the continent. And maybe some activities carried out in London no longer become efficient, and rather than moving to the continent, they just go back to New York or somewhere else, or maybe they don’t happen at all.
One of the Bank of England’s top policymakers has cautioned against assuming that UK interest rates will rise next month.
“In our August forecast we forecast that rate of growth [GDP] of about 1.5% a year, and it is going to continue for the next two to three years. And pay is going to gradually pick up from around 2% to around 3.5% by the end [three year forecast period].
“And that is going to put some domestic pressure on inflation, as the imported inflation eases off. Now if that forecast comes to pass over the forecast period, interest rates will need to go up.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Today we get our first insight into how Europe’s economy is performing this quarter, with the ‘flash’ survey of purchasing managers at companies across the eurozone.
The PMIs ended the second quarter higher than they begun it, suggesting some pick-up in momentum toward the quarter’s end and the continued strength of new orders in both the manufacturing and services sectors suggests that should continue into the third quarter.
UK RNS today #1 – Whitbread – 7% rise in interim revs/profits, holding FY expectations. 'Clear plan for growth'
UK RNS today #2 – Carpetright – small lfl UK sales rise but lower profits vs last yr. Hopeful H2 improvement
UK RNS today #4 – Hunting – improved trading, modest profit expected; Bunzl – perf consistent with expectations