Mobile Banking | Royal Bank of

Royal Bank of Scotland England

The Bank of EnglandNC

Economists believe that billions will be injected into the economy in order to shore up confidence

The expected move from the Bank’s Monetary Policy Committee (MPC) will come after the publication of new data early this week, which it is understood will show that the economy ground to a halt in July.

Aside from cutting rates by a quarter of a point to a historic 0.25 per cent, economists believe that the MPC will inject billions more into the economy via quantitative easing (QE) and by extending the Funding for ­Lending Scheme (FLS), in order to shore up confidence and keep the UK on track.

IHS Markit chief economist Chris Williamson said: “We expect a quarter-point cut, taking the bank rate down to 0.25 per cent. We think they will also have more QE and revamp the FLS. The quarter-point cut will be to show businesses and consumers that the Bank can act quickly and decisively.”

Related articles

Simon Ward, chief economist at Henderson Global Investors, said: “A rate cut is pretty likely, but the question is what else will the MPC do? It is possible that it will announce £25-£30billion more QE for three months and adjust the FLS, possibly to boost the banks’ residential lending.”

This week will see the release of the latest business surveys from data provider Markit and the Chartered Institute of Procurement and Supply, which are expected to show that activity in the manufacturing and services sectors stalled in July because of the economic uncertainty caused by Brexit.

Formula EHowever, the Markit/CIPS purchasing managers index (PMI) data is expected to show that the construction sector experienced a severe contraction.

Preliminary PMI figures earlier this month indicated that the manufacturing and services sectors had gone into reverse and Ward said: “Right now, it looks like the economy has ground to a halt.”

Philip Shaw, chief economist at Investec, was more upbeat: “The final readings this week should benefit from a calming down [post Brexit] and the early formation of a new Government. They will be improved, but from a low level. It looks like the economy will stagnate, rather than going into recession.”

————————————————————————

Formula E’s £43.8million loss comes as a shock

Formula E, the electric racing series that concluded its season at London’s Battersea Park earlier this month, skidded to a £43.8million net loss during its first full year.

GETTY

Currently the electric car series doesn’t have a winning formula

New accounts show that for the 12 months ending July 31, 2015, Formula E Operations generated revenues of just £14.8million.

Sponsorship revenues from the likes of Visa, DHL and Swiss Bank Julius Baer, came to just £2million, whilst the sale of spare parts brought in £3.7million, with fees from race hosts comprising the majority of the remaining £9.1million.

Royal Bank of ScotlandIn contrast, Formula One enjoyed operating profits of £334.6million and revenues of £1.2billion during its 2014 financial year.

The world’s first fully electric racing series was launched in September 2014. It features single-seater cars with top speeds of 150mph racing on the streets of exotic cities like Long Beach in California and Beijing.

The Renault e.dams team won the first and second seasons, fending off competition from Citroën, Audi, PSA Peugeot and even an outfit owned by Hollywood actor Leonardo DiCaprio.

Formula E’s accounts describe its performance as being “satisfactory and in line with expectations”

Royal Bank of Scotland forecast huge net loss drop

ROYAL Bank of Scotland is set to plummet even further into the red on Thursday, when analysts expect it to announce an interim net loss of £1.7billion, up from a loss of £153million for the same period last year.

They believe that it will say that it had been forced to set aside billions to cover potential misconduct costs in the UK and US, as well as restructuring costs. Under chief executive Ross McEwan, RBS is shrinking its investment banking arm and has shed much of its overseas operations.

Under chief executive Ross McEwan, RBS is shrinking its investment banking arm

On Wednesday, rival HSBC is expected to hold its dividend for the first six months of the year at 20 cents per share, even though its pre-tax profits are believed to have tumbled by a third to $9.2billion (£7billion).

HSBC’s chief executive Stuart Gulliver is likely to blame volatile markets and having to set aside more funds to cover potential regulatory fines for the collapse in its profits.

On the same day, Standard Chartered is also forecast to blame volatile markets, as well as a slowdown in its key Asian markets and increasing its legal provisions, for its first-half profits tumbling. Profits are predicted to be down 60 per cent to $734.5million (£557.7million).

Scottish start-ups are more resillient than Englands, research suggests

Towns in Leicestershire, Dorset, North Yorkshire and the South-west all have 50 per cent survival

Start-ups in the regions survive longer than those in London, with traders in Shetland and the East Midlands proving the most resilient at weathering economic storms.

Research from eBay suggests that 56 per cent of new firms in Scotland’s far north last longer than five years, compared to a national average of 42 per cent and 39 per cent in the capital.

Towns in Leicestershire, Dorset, North Yorkshire and the South-west also clocked up survival rates of over 50 per cent.

Federation of Small Businesses chairman Mike Cherry said: “Long-term prosperity relies on spreading growth and productivity gains across the regions. These results are an encouraging sign that this is beginning to happen.”

Source: www.express.co.uk
Share this Post

Related posts

Royal Bank of Scotland England and Wales

Royal Bank of Scotland England and Wales

OCTOBER 18, 2017

These Terms and Conditions explain the customer s rights and responsibilities and those of The Royal Bank of Scotland plc…

Read More
Bank of Scotland branches in England

Bank of Scotland branches in England

OCTOBER 18, 2017

The outbreak of war meant the Bank had to refocus its policies on national need. The inter-war years proved difficult too…

Read More