News
UK to launch Islamic Bond
The UK is to become the first non-Muslim country to issue a Sukuk (a Sharia-compliant Islamic Bond). The news was announced by Prime Minister David Cameron at the 9th World Islamic Economic Forum (WIEF) held in London this week (29th to 31st October, 2013). While this week’s forum will cover a range of themes, including banking, technology, infrastructure, education and youth, it will be news of the £200m Sukuk that will grab the headlines in the non-Muslim world. Since interest is not permissible in Islam the £200 bond will offer a fixed return from tangible assets, and will avoid the payment of interest.
Latest unemployment news
The latest unemployment figures released by the ONS today provide a positive sign that the jobs market is improving, both in terms of rising employment, up 0.3%, and falling unemployment – down by 0.1% to 7.7% (down to 2.49 million).
Bank of England's strategy revealed
So at long last its official – the Bank of England’s ‘forward guidance’ policy is now in the public domain meaning that UK base rates are as good as fixed at 0.5% for the foreseeable future, assuming unemployment does not fall to 7%, which remains highly unlikely in the medium term. Although the ‘gap’ between the current unemployment rate of 7.8% and the likely automatic intervention rate of 7% seems relatively small beer, the last four years have seen unemployment remain stuck between 7.8% and 8.4%, and the last time unemployment was below 7% was back in the first quarter of 2009.
UK growth latest
As expected, the UK economy grew by around 0.6% in second quarter of 2013, according to provisional estimates released by the ONS today. This follows 0.3% growth in the first quarter and, with two consecutive quarters of positive GDP the UK economy is ‘officially’ growing.
Privatisation of Royal Mail
The privatisation of Royal Mail came a step nearer this week with the government’s formal notification to the stock exchange of an imminent IPO (initial public offering). The sell-off will be Britain’s most ambitious privatisation since that of the railways in 1994.