Moneyblog

On any other day of the week the Guardian is – with some justification – complaining about a housing crisis, with millions of young people priced-out of ever owning – or even renting – a decent home. Now, however, it seems to be treating with alarm news that prices are stagnating. ‘UK house prices take pre-Brexit hit, says Nationwide’ declared a headline this week – followed by news that house prices have, in fact, risen by 0.5 per cent over the past 12 months. That is a lot lower than we have become used to in recent decades, but isn’t it a good thing if rampant house price inflation has

Britain is, of course, in a Brexit-driven recession of its own making, while other EU countries are powering on ahead without us. Or so we keep being told. The ideas is that we are distancing ourselves from European markets – and concerned manufacturers will move production to factories elsewhere in the EU. While this gloomy analysis appears to be confirmed every time the CBI, IMF and others publish their forecasts, it is becoming increasingly hard to square with the economic data. This morning, IHS/Markit published its monthly Purchasing Managers’ Index (PMI) for manufacturing – a measure of business activity which leads official government statistics on the economy. The survey takes

The world of business is, apparently, appalled by the actions of the 48 or more Conservative MPs who have triggered a vote of no confidence in Theresa May as Conservative leader. According to the Institute of Directors, its members are ‘tearing their hair out’ over today’s news. The message seems to be that a change of Prime Minister is an unwanted distraction when the country is already in a state of crisis. Yet markets seem to disagree. The FTSE this morning is up by more than one per cent. However negatively bosses might see the potential end of Theresa May as Prime Minister, investors in their companies seem to be

An Oxford professor’s claim that it was “very likely” that  overspending by Vote Leave swung the referendum for Brexit has taken off like wildfire. Professor Philip Howard’s analysis made the front page of yesterday’s Independent under the headline: ‘Illegal Facebook spending ‘won 2016 vote for Leave”. So do the numbers behind the headline add up? Prof Howard, director of the Oxford Internet Institute, calculated that: Around 80 million Facebook users saw the Vote Leave campaign ads on social media during the period of excess spending; 10 per cent of users clicked through; 10 per cent of those users switched their vote as a result, giving over 800,000 switched voters. This argument

So will those Remainers seemingly hoping for a Brexit-related recession get what they want after all? This morning Purchasing Managers’ Index (PMI) for the service sector certainly points in that direction. The index, which is really just a questionnaire to businesses but which can give advance warning of swings in economic growth, fell to 50.4 in November, down from 52.2 in October and 54 in September. Anything above 50 denotes growth – so it doesn’t indicate we are yet in recession – but it suggests a steep plunge in activity and confidence which could well take us there. It would be foolish to deny any link with the Brexit crisis.

Donald Trump has always been consistent on Brexit. He admired the spirit of the vote, a freedom-loving people defying their elites, as his deplorables would go on to do. He likes Britain. He dislikes the EU, which he has always regarded as a sort of protection racket for German manufacturing and an institution that gets in the way of his golf course development. Ever since Trump’s inauguration, he has made it clear that America is ready to give Britain the ‘beautiful’ free trade deal that so excites Brexiteers. But he and his advisers have been consistently disappointed by May’s insistence that she must stick by E.U. terms and regulations at

A few months ago, an aggressive US pressure group called the Campaign for Accountability declared that it had a new target: the Wall Street behemoth BlackRock. Quickly, the American press picked up on this campaign against excessive corporate power. Soon we were reading about how BlackRock, like Goldman Sachs before it, ‘rules the world’. Despite BlackRock’s supposed omni-potence, it is relatively unknown in Britain. It might be the biggest private manager of assets in the world but, in political terms, the company has existed in relative obscurity. That is, until last year, when it handed George Osborne a £650,000 contract for giving ‘advice’ one day a week. In recent months,