A leading City fund manager is so concerned about Gordon Brown's economic record that he has spent £5,000 of his own money placing an advertisement criticising the new Prime Minister in the in-house magazine at the Houses of Parliament, The Independent reports.
Patrick Evershed, of New Star Asset Management, accused Mr Brown of building up the British economy on a "mountain of debt". He said consumer borrowing and private equity industry gearing had kept the economy afloat over the past 10 years. Mr Evershed, who describes himself as "an active member of the Conservative Party", said yesterday that he had placed the adverts because of his concern about Mr Brown's economic record, rather than to score political points.
This is the second time he has placed advertisements attacking Labour. Last year, he spent tens of thousands of pounds on front-page adverts in the Financial Times and Daily Telegraph criticising Mr Brown.
According to The Guardian, Britain's biggest mortgage lender, the Halifax, today predicted a slowdown in house-price inflation in the second half of the year after its monthly snapshot of the property market showed prices rising at 0.4% last month.
Halifax said there were signs that higher borrowing costs were already slowing the market. It ruled out a property crash, however.
The Halifax said prices had risen by 2% in the second quarter of 2007, down on the 3% increase in the first quarter and the 4.2% rise in the final three months of 2006. A 10.7% increase in the cost of a new home over the past year has taken The Bank of England is widely expected to increase rates by 25 basis points to 5.75 per cent today, taking the cost of borrowing to a six-year high in a concerted bid to put the lid on inflation – The Times reports. the average price of property in the UK to more than £197,000.
The Bank of England is widely expected to increase rates by 25 basis points to 5.75 per cent today, taking the cost of borrowing to a six-year high in a concerted bid to put the lid on inflation – The Times reports.
Philip Shaw, economist at Investec, told Times Online this morning that it was "very likely" rates would move to 5.75 per cent. He said he hoped this would represent "the peak of the current rate cycle", although he acknowledge there was a risk of a potential further increase to 6 per cent in the autumn.
A rate rise by the Bank's rate-setting Monetary Policy Committee would mark the fifth increase in borrowing costs since August, when rates stood at 4.5 per cent.
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To promote 'long-term investment'
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Smaller funds still packing a punch