Speaking at the World Economic Forum in Davos, Switzerland, Mr Carney indicated he was prepared to see inflation, which is currently running at 2.7 per cent, remain higher than the government’s two per cent goal for longer if it means output can be increased faster
Negative signs add to pressure for UK stimulus
Fresh signs have emerged that the British economy is “flatlining”, giving more ammunition to the incoming Bank of England governor, Mark Carney, reports the Independent.
Deloitte’s quarterly survey of consumers showed a net balance of minus 33 per cent of those surveyed feeling positive about their disposable income – only marginally better than the minus 39 per cent seen a year earlier.
Osborne faces MPs’ fury as he ‘shrugs off’ recession fear
George Osborne faces a rough ride from MPs on Tuesday as fears mount that Britain is heading into a triple-dip recession, reports the Daily Mail.
With the economy having shrunk in the final quarter of 2012, odds are shortening that it will do so again in the first three months of this year. The cold snap of the past 10 days will have hit the economy at a time when the country needs all the activity it can get.
US faces fresh financial shock
The $1.2trn (£0.8trn) in automatic spending cuts that Barack Obama once promised to avert are looking increasingly likely to occur because of entrenched politics in Washington, threatening a shock to confidence in the US economy, reports the Financial Times.
Accountant joins backlash against tax dodge attacks
One of the UK’s top accountants has joined the business backlash against attacks on corporate tax avoidance by politicians, telling the authorities to change the law if they are unhappy with the ethics, reports the Daily Telegraph.
Starbucks denies threat to withhold investment after Cameron’s ‘cheap shots’
Starbucks has denied threatening to withhold millions of pounds of investment in the UK after the prime minister said tax-avoiding companies need to “wake up and smell the coffee”, reports the Daily Mail.
UK redundancy payouts reach record £5bn
Britain’s employers shelled out a record £5bn in redundancy payments last year, as both public and private sector workforces shed thousands of staff, new figures show, reports the Daily Telegraph.
Banks set to test water with new CLOs
Bankers in Europe are testing the water with new variations of collateralised loan obligations (CLOs) that boomed until the subprime crisis, as they seek to take advantage of strong investor demand for high-yielding assets, reports the Financial Times.