Bank of England Minutes of the MPC Meeting Held on 8 and 9 May 2013: http://www.bankofengland.co.uk/publications/minutes/Documents/mpc/pdf/2013/mpc1305.pdf Above is the link to the Bank of England website, for the full PDF release. The link is hosted on an external website, which Abshire-Smith do not take responsibility for its content or any liabilities.…

There is a growing concern that the UK government’s flagship scheme to help first time buyers access the housing market will fuel a property bubble. On Monday according to data released by Rightmove, theaverage house price in London is now above £500,000 for the first time. Low borrowing rates, demand outstripping supply and buy-to-let rental yields have all fuelled the surge. Analysts are highlighting that the Chancellors scheme to help many individuals access the property marke…

The Ernst & Young Item Club said persistently high inflation had knocked almost 3 percentage points off the economy over the past three years and was set to remain above the Bank of England's 2 per cent target "for the foreseeable future" - The Independent The Conservative party over the weekend has come under attack following a national paper printing comments said to have been made by a senior Tory official stating grassroots party members were “swivel-eyed lo…

The London Stock Exchange now makes more money from its by-product 'data' than from its core capital markets business - CityAM SNB will cap Franc as long as deflation risks persist - Bloomberg Yen remains weak, with many strategists recommend buying on dips, currently trading above 102Y Gold trades below $1400/oz Following the preliminary GDP figures, Japan’s Economy Minister Amari said the effects of Abenomics are beginning to appear EURUSD the ye…

On Tuesday as the FTSE 100 closed at a 5 and half year high, as the potential takeover of utility company Severn Trent. Equity indices in Europe and the US have powered higher, fuelled by investors search for a return. The prolonged period of record low yields on government paper, and the cost of debt financing has led to an increase in M&A activity. The dollar has been strong across the board, reaching multi-week and month highs against all of the majors. The depreciation in the Y…

Articles in the press are highlighting the recent data from the UK and how the economy is starting to show signs of the long awaited recovery: The CBI predicts that the UK GDP will grow by 1% this year and 2% next. The ONS now believes that the UK avoided the publicised and heavily criticised “double-dip” recession The Telegraph reported on Monday that Governor of the Bank of England Mervyn King might revise their growth forecast higher before he steps down in…

Global equities markets soared yesterday with some bourses printing all-time highs. To those outside of the investment community the equity rally seems in contrast to economic news. -FTSE 100 closed at 6,557.30 the highest level since December 2007 -DAX closed at 8,181.87 an all-time high -Dow Jones Industrial Average rallied to close above the psychological 15,000 level for the first time The rally has been fuelled by cheap money, from the historically low borrowing…

European Central Bank Meeting Thursday 2nd May 2013 The European Central Bank (ECB) as expected has cut interest rates by 25bps to 0.50%. -44 of the 70 economists surveyed expected the ECB to cut by 25bps -1 economist predicted a 50bps cut -Standard Chartered, CitiGroup, Credit Suisse, Commerzbank, JPMorgan, Goldman Sachs, Barclays and Deutsche all expected the ECB to cut rates by 25bps The macro data coming from the Eurozone has been mixed, with a two tiered No…

China's sustainable and stable economic growth offers great opportunities to the world, Chinese Premier Li Keqiang said on Sunday Japan’s new stimulus policies have led to a sharp revival in demand for traders in Japanese bonds, equities and currencies, with “Abenomics” fuelling trading volumes in those markets - Financial Times The Spanish economy contracted at a slower pace in the first quarter of 2013, preliminary data released by the statistical office I…