Qatar to invest further £5 billion in UK

Germany’s IFO business climate index hit its highest level in six years this March. Ifo said its index, based on a monthly survey of close to 7,000 firms, reached to 112.3 from 111.1 in February. The headline figure was supported by improved sentiment in construction, manufacturing and retail. The construction sector reading reached its highest level since 1991, supported by a housing boom in Germany driven by a growing population, rising wages, and low borrowing costs. Managers’ assessment of current business conditions in the survey also reached it’s since 6 years, with firms expressing greater optimism about the months ahead. 

Lending to Eurozone economies grew at the fastest pace since December 2010 in March according to data from the European Central Bank.  Household lending in the euro zone expanded by 2.3% in March from 2.2% in February, showing that the ECB”s ultra-loose monetary policies is starting to gradually giving a boost to the household sector.  The data comes on the back of robust PMI data on Friday, which showed Eurozone PMI accelerated to 6 year highs.

Sterling rose 1 percent to an almost eight-week high gaining with other majors as sentiment in Donald’s Trumps ability to push through reforms on taxation and his infrastructure spending plans weakens. The pound is now trading at the top of the USD 1.20-1.27 range it held since October 2016, having been steadily rising since a March meeting of the Bank of England saw many members concerned over rising interest rates. The rise comes a day before Britain plans to trigger article 50, starting its two year divorce process from the EU. While market sentiment is likely to be impacted by the long process of separation, GCC economies are exploring opportunities Brexit will create. On the eve of Brexit Qatar which has close to 40 billion pounds of investments in the UK, pledged to invest over 5 billion pounds over the next 5 years. 

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