Demand for credit cards faces a record drop as Brexit scares business borrowers

Brexit has an even bigger impact on credit card loans than the 2008 financial crisis, Reuters analyst Andy Bruce said:

NEWSFLASH: Demand for mortgages and credit declines as UK consumers prepare for Brexit.

The Bank of England has just announced that demand for new home loans in January-March is expected to fall at the fastest pace since 2011.

Demand for credit card loans is also slowing, and is expected to fall at the fastest pace since records began in 2007, the BoE adds.

This suggests that concerned consumers are putting off their moves and purchases because they are worried about the future of the United Kingdom, while Parliament has still not blocked the way forward.

These data come from the latest Bank Credit Conditions Survey, which has just been published. It is based on data from lenders of banks and mortgage companies.

The bank says:

Lenders have indicated that the demand for secured loans for the purchase of housing has declined significantly in the fourth quarter and is expected to decline further in the first quarter. However, the demand for secure loans for tugging increased slightly in the fourth quarter, but is expected to decrease slightly in the first quarter.

Overall demand for unsecured loans increased further in the fourth quarter; This rise is solely due to a significant increase in the demand for credit card loans. However, lenders were expecting a significant drop in demand for credit card loans in the first quarter, as demand for other unsecured loans is expected to remain unchanged.

Here are the key graphs:

Overnight, we learned that real estate prices in the UK were falling at the fastest pace in six years – another sign that the EU's exit is affecting the economy.

The UK's energy strategy has been plunged into a "full-fledged crisis", while Hitachi suspends plans to build a nuclear power plant in Wales.

The concerns of the trade war are weighing on the markets today.

The Shanghai Composite Index in China fell 0.5%, following reports that US authorities were investigating Huawei.

European markets also opened lower, the FTSE 100 losing 0.35% (or 24 points to 6,838).

Jasper Lawler of London Capital Group said:

The negative start follows reports that US federal prosecutors are investigating Huawei Technology for allegedly stealing trade secrets.

The move comes as Sino-US relations improve after a truce of 90 days. This goes straight to the heart of unresolved intellectual property issues with China. It is unlikely that China will forget about this situation, which creates a less risky environment. Signs of retaliation from China could see stocks drop further.

The Chinese giant Huawei technology is at the heart of the conflict between Washington and Beijing.

In the night, the Wall Street Journal reported that US authorities were at the "advanced" stages of the criminal investigation of society.

Citing unnamed sources, the WSJ said the Justice Department was investigating allegations that Huawei had stolen trade secrets from US trading partners, including a T-Mobile robotic device used to test smartphones.

The AFP says:

Huawei and the Ministry of Justice refused to comment on the report in the media.

However, Huawei said that "Huawei and T-Mobile have settled their disputes in 2017 following a verdict by a US jury finding no injury, unjust enrichment or willful and malicious conduct" from Huawei in the commercial secret of T-Mobile ".

Earlier this week, Huawei's founder gave a rare interview in which he denies that his company is spying for China and also praises President Trump. Ren Zhengfei's daughter, Meng, is fighting to extradite him to the United States to face charges of violating US sanctions.

Newsflash: One of China's top political leaders will visit Washington later this month to continue the trade talks.

Chinese Vice Premier Liu He will travel to the United States on January 30th and 31st for the next round of trade talks with Washington, the Chinese Ministry of Commerce said.

Aso's comments were revealed when one of the many Japanese technology companies revealed that it had been affected by the US-China trade dispute.

Nidec, a Japanese precision engine manufacturer, cut its profit forecast by 25 percent and warned that the trade war was deterring customers from spending.

Nidec warned (via Reuters):

"The company finds an unfavorable push effect of the current US-China trade frictions on its operations in many countries, particularly China,"

Hello and welcome to our slippery coverage of the global economy, financial markets, the euro zone and businesses.

While fears of a trade war are bubbling, Japan is asking the world's major economies to oppose the rising tide of protectionism.

Japanese Finance Minister Taro Aso warned other G20 ministers that the global recovery is slowing. We risk falling back into a closed and fragmented world if the advanced economies do not stick to "international cooperation and openness", he warned.

At a meeting in Tokyo, Aso also warned that dissatisfaction aroused by inequality was increasing and that "unfair trade practices" were also detrimental.

Opening the meeting of Deputy Ministers of Finance, he said:

"The discontent with economic inequality is increasing. We are in serious danger of returning to a closed and fragmented world.

"Protectionism and unfair trade practices lead to instability and perverse economic outcomes. We must renew our commitment to international cooperation and openness. "

Aso's comments come as the traditional international order falters in the face of the US-China trade war. Beijing and the United States have only six weeks to reach an agreement before the imposition of a new wave of perfect tariffs.

Japan, which has just assumed the presidency of the G20, wants to focus on global trade imbalances and the impact of aging population

L & # 39; s calendar

• 9.30 GMT: Bank of England survey on credit conditions
• 13:30 GMT: Weekly data on initial unemployment in the United States