We are simply using new technologies spawned by the internet to run faster for very little gainThe internet saved the economy. Or at least the British consumers’ obsession with all things internet. Oh, and a property boom that has filled estate agents’ pockets.That’s the only conclusion one can draw from the figures for GDP growth in the final quarter of 2015, which show that galloping services sector output more than made up for the damage done to factory orders by the downturn in global trade and the strictures placed by George Osborne on government spending.Related: UK economic growth confirmed at 0.5% but fears of slowdown persist Continue reading...

Consolidation is a fact of life in the stock exchange game, but this proposed merger is far from a done dealThe London Stock Exchange and Deutsche Börse pick their moments. The duo’s first set of merger talks, way back in 2000, created a storm when both parties appeared to suggest that share prices in London would soon be quoted in freshly-minted euros.This time, the negotiations come at the start of the UK referendum campaign in which the prime minister has claimed the City of London will be safe from continental meddlers. Cue, almost certainly, wails of anguish from some quarters about the potential loss of a great British institution. No wonder LSE and Deutsche tried to invoke visions of happy European harmony with their talk of “a merger of equals.” Continue reading...

Bank governor dismisses setting negative interest rates even in the event of an economic downturnThe Bank of England could cut interest rates to zero, but will seek to avoid following Sweden, Denmark and the eurozone by setting negative rates to bolster growth and inflation.Mark Carney, the Bank’s governor, said Threadneedle Street had “no intention and no interest” in implementing negative interest rates and would adopt the full range of the Bank’s other powers to deal with a downturn in the economy.Related: Negative interest rates: what you need to know Continue reading...

Office for National Statistics data shows poorest fifth better off since 2007-08, in findings at odds with reports that show rich have got richerThe richest fifth of the population are worse off now in terms of disposable income than they were before the 2007 financial crash, but the poorest fifth have typically become better off, according to official figures which could spark controversy among anti-austerity campaigners.The data from the Office for National Statistics, published on Tuesday, also reveals a generational split, with the average disposable income of retired households now higher than in 2007-08 – in stark contrast to millions of working households, who are typically around £900 a year worse off.

Treasury select committee chair says amendments ‘give the appearance of a minister trying to lean on the OBR’The Treasury select committee is concerned that the independence of the body set up by the government to provide economic forecasts is being compromised.In a report into the Office for Budget Responsibility (OBR) published on Monday, the Treasury select committee found that words such as “topslice” to describe spending cuts were removed – although concluded that in the end this did not change the analysis of the economic situation. Continue reading...

Crude oil dips on renewed supply glut fears, with markets set to end positive week on downbeat note2.47pm GMTA slide in oil prices on concerns about oversupply - notwithstanding the recent proposal from producers to freeze output at January levels - continues to take the shine off this week’s stock market rally.US markets have followed Europe lower, with the Dow Jones Industrial Average down 70 points or 0.4% in early trading. As well as oil, investors were unsettled by higher than expected inflation numbers, which could prompt the Federal Reserve to raise rates sooner than forecast.2.42pm GMTAnother point about US inflation:Markets are focused on the black line (goods = 30% of core CPI). Fed should be focused on blue line (services = 70%) pic.twitter.com/3vbr3ftfIZ2.29pm GMTOver in Greece, protesting farmers have upped the ante, expanding roadblocks nationwide ahead of what some are calling make-or -break talks with prime minister Alexis Tsipras on Monday. Helena Smith reports from Athens:A month into their protests over pension and tax reforms, the powerful bloc of farmers that have brought chaos to Greece intensified their action, announcing that tractor blockades would be stepped up around Thessaloniki airport this afternoon.More than 66 % of Greece’s import and export trade is carried by road to Europe with the economy suffering huge damage as a result of the blockade.2.16pm GMTTurning back to the UK public finances, the Office for Budget Responsibility, the government’s independent economic analysts, said there was uncertainty over the outcome for the rest of the year:On the current data, meeting our full-year forecast for 2015-16 would require borrowing to fall by £18.4 billion in the year as a whole. That implies borrowing of £7.0 billion over the next two months, compared with £14.8 billion in the same period last year. Our November forecast does assume stronger growth in receipts in the remainder of the year (particularly income tax and stamp duty land tax) but local authority borrowing as measured in the statistical bulletin looks likely to exceed our November forecast. Considerable uncertainty remains over prospects for the remaining two months of the financial year, while data on local authority borrowing are often subject to substantial revisions over subsequent months.Public sector net debt (PSND) in January 2016 is estimated to have fallen by 0.1 per cent of GDP relative to January 2015. A major contributor to the drop over the past 12 months has been the Government’s programme of financial asset sales, including multi-billion pound sales of Lloyds shares and UK Asset Resolution mortgage assets. But the nominal GDP estimate used to calculate the debt ratio is in part still a forecast, so it remains to be seen if debt is still shown to fall on this basis in the year to January in future outturn estimates.2.03pm GMTStill, the higher than expected US inflation numbers may not prevent the Federal Reserve from sitting on its hands in terms of any imminent rate rises, says Rob Carnell of ING Bank:US CPI for January came in a little stronger than had been expected, with the headline rate unchanged on the month, and the core rate rising by 0.3% month on month. Headline inflation in January is now double that in December at 1.4% year on year, with the core rate now at 2.2% (up from 2.1%).Inflation has been one of the factors the Fed has cited for its cautious stance towards monetary policy changes. But despite these latest inflation increases, concerns over the ebbing strength of domestic activity may start to provide more of an excuse for further foot dragging, whilst external demand and financial market turbulence provides yet another excuse for the Fed to do nothing for the foreseeable future.1.49pm GMTThe US data does seem to show a trend:Beating estimates in past 2 wks:

The bosses of the two companies, Iain Conn and David Brown, have faced a barrage of questions about their treatment of customersIain Conn and David Brown should compare notes after the day they have just had.The two men are in charge of companies battling it out for the unofficial title of most-hated business in Britain. Conn is the boss of Centrica, owner of British Gas, while Brown is the head of Go-Ahead, which operates the Thameslink, Southern and Southeastern rail franchises through its subsidiary Govia. Continue reading...