Rolling coverage of the latest economic and financial news
- Introduction: Pound has fallen back to $1.31
- Sterling hits two-week low vs euro
- Threat of hard Brexit in December 2020 looms
- UK inflation tipped to fall to 1.4%
- Energy price cap could help
Newsflash: German business confidence has risen, as Europe’s largest economy continues to swerve a recession.
The IFO think tank has reported that Germany’s business leaders are more confident about future prospects, and that current economic conditions have brightened a little this month.
#Ifo defying the setback in #PMIs and rising for a third month in Dec. Seems like #Germany is edging further away from #recession territory in Q4, amid brightening prospects for #manufacturing and a stabilizing export situation. pic.twitter.com/xcSfLkAV0r
The pound is bobbing nervously this morning, currently below $1.309 at its lowest level since election day.
Rupert Harrison of asset manager BlackRock says Boris Johnson needs to tread more carefully, and help lower economic uncertainty rather than dolloping more onto the markets.
Having said this, the economic benefits of a reduction in uncertainty will require the govt to, you know, actually help to reduce uncertainty…
The fall back in £ over the last 48 hours shows how fragile sentiment is. No10 need to realise their words have consequences https://t.co/lxeUmDdCxd