All the day’s economic and financial news, as MPS grill the Bank of England about BrexitHaldane: No-deal fears are hurting growthSaunders: Businesses aren’t ready for no-deal BrexitCarney: May’s Brexit transition deal would support UK economyBank will release its Brexit scenarios next week 1.44pm GMT In other news, cryptocurrencies are having a bad day, again.Bitcoin has slumped by around 7% to below $4,500 – a blow to anyone who piled in when it was ‘worth’ almost $20,000 last December. Related: Bitcoin price plunges below $4,500 mark in new 2018 low Fundamentally speaking, the current sell-off is due to two main reasons; regulatory pressure and disagreement within the coin developer community, one of the biggest threats. The SEC reminded the crypto world that it has the final say over anything that smells like a security. The department issued civil penalties against two cryptocurrency companies because they failed to register initial coin offerings as securities. Investors will be given their refund and the firms will have to face fines. The fear is that the SEC may not stop here and might take similar action against several companies that adopted a similar path. The community needs to stick together and work towards a more meaningful fork. This is because, developers, on the one hand, try to convince the world that the supply is limited and, on the other hand, they keep looking at ways of triggering another kind of forks. Forking has become so common that it puts at risk the notion of limited supply altogether.Nice for cryptos to start the Black Friday sale early 1.25pm GMT Today’s hearing showed that the Bank of England remains very worried about a no-deal Brexit, says Hinesh Patel, portfolio manager at Quilter Investors.Patel explains this would leave the Bank ‘between a rock and a hard place’, with falling demand and rising inflation to balance.“From the Bank of England’s perspective the biggest concern above all else is the threat of a disorderly Brexit. A tumultuous departure would leave the Bank in the impossible position of trying to manage the risk of rising imported inflation if the pound were to fall further, while also trying to create conditions that are supportive of growth through a difficult period for the economy.The Bank has been really clear and consistent in pointing out its view that Brexit uncertainty has stunted business investment, a key driver of growth. Continue reading…
Via: Bank of England backs Theresa May's Brexit deal, and warns of no-deal dangers – business live
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