The Old Lady of Threadneedle St

Thu, 2017/11/02 - 2:38pm | Your editor
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The Old Lady of Threadneedle Street, the Bank of England, the central bank of the UK, has just doubled interest rates—from 0.25% to 0.5%. The move was widely expected but the rate hike nonetheless took down British stocks, if only by 0.2%. BoE governor Mark Carney said inflation is expected to be over 2% for longer than the next 3 years, hinting at more rate rises after the first upward move since 2007.

This scared the London Stock Exchange and for once the rising shares were not US$ earners this time because the tax cut rally in the Greenback reversed today first because the Fed did not hike rates (which was hardly likely) and Pres. Trump opted to name a new chairman who supports current Fed policy-- and because of profit-taking.

 

Today there are a couple of challenges to the European Union which for once have nothing to do with Brexit. Firstly, the former chief of Catalonia is taking refuge in Brussels from attempts to summon him to be arrested in Spain. And secondly because two leading German department stores, Kaufhof and Karstadt, are proposing to merge—something like Macy buying Gimbels in NY terms. The Treaty of Rome has very strict anti-cartel rules dating back to the early post-War years when this was needed.

 

Moreover it is unclear whether the US can product a tax plan to get internet cash caches held in European havens to the USA via an amnesty.

 

More today from Israel, Britain, Canada, Mexico, Brazil, Germany, Colombia, Hong Kong, Japan, Switzerland, Spain, Denmark, Norway, and South Africa.

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