FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis

UK’s Blue-Chip FTSE 100 recovered in 2021, its best year since 2016, after suffering its worst year since the 2008 financial crisis in 2020. On the last day of the year, it closed 0.3% lower at 7384, up 14.3% for the year. Stocks recovered from some of the Covid-19 pandemic lockdowns and Brexit uncertainty. Other than in Spain, Britain’s top stocks were the poorest performer among the largest European stock indices. FTSE 100 closed at 7384 points on Friday, having … Continue reading “FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis”

Bank of England Unexpectedly Raise Interest Rates for First Time in Three Years

The Bank of England MPC at its December meeting voted 8-1 (Silvana Tenreyro dissented) to raise the Bank Rate from the historic low of 0.1% to 0.25%. The decision was a surprise amid a severe deterioration in the economic outlook with Omicron triggering a collapse in consumer confidence.  Inflation is at the highest rate for a decade, 5.1% in the 12 months to November, the sharpest annual incline for 10 years and well above the Bank’s 2% target.  Thw BoE … Continue reading “Bank of England Unexpectedly Raise Interest Rates for First Time in Three Years”

Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate

The Bank of England MPC at it’s November meeting voted 7-2 (Ramsden and Saunders dissented)to maintain Bank Rate at 0.1%. The Committee voted 6-3 (Ramsden, Saunders, Mann dissented) to maintain corporate bond purchases at £20 billion and government bond purchases at £875.   Highlights: Bank of England announced  September 23 2021 monetary policy decision Unchanged at prior 0.10% Official bank rate votes 0-0-9 vs 0-0-9 expected Bank rate vote 7-2 (Ramsden and Saunders dissented) Gilts Asset purchase target £875 bn … Continue reading “Bank of England Holds Base Rate at 0.10%, Upward Pressure on Inflation Expected To Dissipate”

Bank of England Holds Base Rate at 0.10%, UK Q3 GDP Expectations Revised Down

The Bank of England MPC at it’s September meeting voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously to maintain corporate bond purchases at £20 billion and government bond purchases at £875. Uncertainty around labour market outlook has increased

Bank of England Holds Base Rate at 0.15%, Target Asset Purchases at £895 billion

The Bank of England MPC at it’s March meeting voted unanimously to maintain Bank Rate at 0.1%. The Committee voted unanimously to maintain corporate bond purchases at £20 billion and government bond purchases at £875.

Brexit and Lockdowns See FTSE 100 Have Worse Year Since 2008 in 2020

The UK’s Blue-Chip FTSE 100 suffered its worst year since the 2008 financial crisis in 2020. On the last day of the year, it closed 1.5% lower at 6,460, down 14.3% for the year. Stocks were hit by the Covid-19 pandemic lockdowns and Brexit uncertainty. Other than in Spain, Britain’s top stocks were the poorest performer among the largest global stock indices. The FTSE 100, known as the Footsie, started the year at 7,542 points and closed on New Year’s … Continue reading “Brexit and Lockdowns See FTSE 100 Have Worse Year Since 2008 in 2020”

IMF to Mobilize $1 Trillion Loan Capacity To Fight Virus Damage

In response to the Coronavirus panic effect on world economies the IMF issued a statement Monday that it’s ready to mobilize a $1 trillion loan capacity to fight the virus. This is crucial where emerging markets unable to tap debt markets,

Bank of England Tenreyro Sees Rate Cuts and Stimulus On The Table

Bank of England’s Silvana Tenreyro said today her inclination is towards a rate cut if downside risks emerge, currently the BoE base rate is 0.75%. She added discussing the possibility of stimulus, current asset purchase target is £435 billion with a corporate bonds  £10 billion.

UK Affirmed AA by Fitch, Off Ratings Watch Negative, Brexit Deal Expected

Rating agency Fitch affirmed UK at ‘AA’ and removed them from Rating Watch Negative (RWN). The Outlook is Negative. Forecast highly likely UK leaves EU with an agreement on Jan 31 2020. Uncertainty regarding future of UK and EU relations for some time.

Bank of England Holds Base Rate at 0.75% But Saunders and Haskell Voted for Cut

The Bank of England voted 7 to 2 to maintain Base Rate at 0.75%. The asset purchase target of £435 billion with a corporate bond target £10 billion for bond purchases was voted unaminous. Brexit uncertainty overhangs forecasts.