Equities rally on prospect of cheaper money

Money-grow

At the beginning of this year equity markets were reeling from a sell-off driven by fears over global growth and rising US interest rates.

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Posted on 01/07/2019

Are we doing better than we think?

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It is commonplace to say that the pace of technological change is speeding up. From Twitter to online shopping our everyday lives are, apparently, being transformed.

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Posted on 24/06/2019

Central banks to the rescue – again?

Compass

This morning we are launching our second quarter “Global Economy in Charts” report, available here - https://blogs.deloitte.co.uk/mondaybriefing/2019/
06/global-economy-in-charts-q2-2019.html

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Posted on 17/06/2019

Global Economy in Charts - Q2 2019

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Posted on 14/06/2019

China’s Belt and Road Initiative

Tunnel

China’s growth rate has slowed in recent years. Its sustainable growth rate has almost halved, to around 6.0% in a decade or so.

By Western standards this is an unattainably rapid growth rate. It would enable China’s economy to double in size every 12 years. China is still a fast-growing country, and one that exercises growing authority on the world stage. From technology to overseas investment and geopolitical influence China increasingly matters.

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Posted on 10/06/2019

Modern Monetary Theory – or alchemy?

Coins

For centuries governments have taxed, borrowed or created money to pay for public spending. All carry risks. Heavy taxes dampen growth and upset voters. Excessive public borrowing triggers financial crises. Printing money to pay for public spending can look tempting. But, as rulers from Henry VIII to Venezuela’s Nicolás Maduro have discovered, creating money out of thin air and spending it tends to destroy confidence and send inflation rocketing.

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Posted on 03/06/2019

Safe as houses

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To outsiders the British can seem slightly obsessed with house prices. Yet it is an asset that matters. Two-thirds of UK households are owner occupiers and 35% of household wealth is tied up in property.

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Posted on 28/05/2019

Jobs and work, how the UK compares

People

Last week saw UK unemployment fall to the lowest level since 1974. Against a backdrop of sluggish GDP growth this is quite an achievement. But the success of labour market policies should be judged on wider criteria. The quality of work, the flexibility of the jobs market and how inclusive and productive it is also matter. This week’s Briefing assesses the UK on each count.

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Posted on 20/05/2019

If life is getting worse then why are we so happy?

Deloitte-uk-happiness

Last year I was asked to give a presentation on the challenges facing Western policymakers. We ranged widely across a depressing set of subjects, from stagnating incomes to inequality, public sector austerity, job insecurity and the rise of populism.

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Posted on 13/05/2019

Climate change and the threat to financial stability

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Last month the governor of the Bank of England, Mark Carney, issued a stark warning about the impact of climate change: “If…companies and industries fail to adjust to this new world, they will fail to exist”. Mr Carney’s statement was co-signed by the chair of the Network for Greening the Financial System, a coalition of 36 central banks, including the People’s Bank of China. The Network helps central banks measure and mitigate the risks to the financial sector posed by climate change. Last month’s statement signals that climate change has well and truly arrived as an issue for central bankers.

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Posted on 07/05/2019