UK Economy

Further political turmoil in the UK; construction activity rises but still reasons for concern

The continuing political chaos in the UK continues to weigh on financial markets as sterling and UK economy stocks fell in the aftermath of the delay on a parliamentary vote on Brexit....

Bank of England lays out the cost of Brexit

Yesterday (November 28th) the Bank of England set out the likely impact of Brexit on the UK economy — Theresa May’s deal would reduce UK GDP by 1-3% over ten years, but a no-deal...

UK government borrowing widens to three-year high in October

October’s data showed a sharp deterioration in UK public borrowing with the deficit equalling £8.8bn, the widest monthly figure for three years. The culprit was a sharp 6% rise in...

Brexit: the status quo or chaos

Sterling remains at 88.8p this morning, gaining little despite the likelihood of a confidence vote in Theresa May receding. The focus will now move to Sunday’s EU summit to sign off the...

Lukewarm reaction to UK Cabinet approval of Brexit deal

Sterling gained little after the news that Theresa May had secured 'collective' approval for her Brexit deal, reflecting the view that the key challenge will be pushing the withdrawal bill...

UK parliamentary arithmetic doesn’t add up for Brexit deal

Sterling held onto gains overnight, trading at 86.8p against the euro this morning. Theresa May will aim to secure Cabinet support for the draft Brexit deal at a 2pm meeting today....

UK RICS house price balance falls to six-year low

This morning’s UK RICS housing survey points to a further deterioration in conditions. The price balance fell to -10%, a six-year low, weakest in London and the South East, with...

PMI surveys point to Italy's economy stagnating

Yesterday's euro area October PMI was revised up slightly to 53.1 – pointing to 0.3% GDP growth in the final quarter. However, the Italian composite fell to 49.3 – suggesting that...

Brexit deal off as UK attempts to backtrack on key concession

In a day of confusion, the prospect of an imminent Brexit deal receded as the Irish government asserted that any backstop arrangement on the Northern Ireland border must not be...

A deal on Brexit?

Speculation has grown over the weekend that EU-UK negotiators are close to a deal on the Brexit withdrawal agreement. However, Irish Tanaiste Simon Coveney has this morning restated...