GS: Cryptocurrencies and loans will overshadow US growth (1)

Financial imbalances, including those in cryptocurrencies and credit markets, are expected to overshadow the growth of the world's leading economy, Goldman Sachs Group Inc. analysts said.
The bank is also expecting four Fed interest rises in the next year and an acceleration in the US economy to 2.6%. The unemployment rate in the world's largest economy is expected to drop to 3.5%.
However, the financial institution does not expect everything to go smoothly. According to them, estimates of some assets, especially loans, have reached a high level, historically. And as long as we do not see credit rises to levels that would disturb the Fed, there are signs of speculative behavior in credit instruments as well as the cryptocurrencies boom.

The Bank of England left interest rates unchanged at a level of 0.25%

The Bank of England left interest rates on the main level of 0.25 percent, but it became clear that there is a real opportunity for a new reduction in interest rates by year-end, which of course is related to the leaving of the United Kingdom from the European Union and all related consequences with this. The institution raised its forecast for growth of the economy in the third quarter to 0.3% compared to the previous forecast of 0.1 percent.
Immediately after the news GBP/USD fell to 1.3179, but later rebounded and closed at 1.3237, almost unchanged from closing on Thursday. Retail sales in the UK shrank in August, decreasing by 0.2%, although in July recorded a growth of 1.9%.

Business activity in the British manufacturing sector improved surprisingly sharply in August

Business activity in the British manufacturing sector improved surprisingly sharply in August to a 10-month high after a dramatic drop to 41-month low in July. The reason was that industrial companies in the country seemed to have recovered from the initial shock of the decision of Britain to leave the EU and managed to increase their export orders, and found support from the sharp depreciation of the British pound after news for Brexit, say analysts.
The industrial PMI index in UK grew strongly in August to 53.3 points from 48.3 points in July with expectations by financial markets for index level of 49.0 points. This is the highest level of the index for 10 months.
Index PMI, which measures industrial new export orders, rose from 51.4 points in July to 54.9 points in August, reaching the highest level since June 2014, while the index for industrial production rose to a 7 month high.
Now on focus is the research by agency Markit about the activity in the UK services sector in August, which will be announced early next week.