InterContinental Hotels report healthy profits in 2011

The InterContinental Hotel Group report a 9% increase in revenues to £1.1bn for the year ended 31 December 2011 taking their share price to its highest ever level in February 2012. This combined with a statement that hotel rooms are 85% booked for the Olympics suggests that revenues will continue to rise in 2012. InterContinental have recently announced their intention to expand into emerging markets.

Bank of England Announces further Quantitative Easing

The Bank of England has announced a further round of quantitative easing in a bid to stimulate the flailing UK economy. The Bank have vowed to keep interest rates at their current record low and have announced plans to boost public spending through the purchase of £50bn gilts. 

The bank’s response suggests that the UK economy is not expected to recover in the near term. Growth has been stifled by recent uncertainty over the Greek bailout and the Euro debt crisis.

UK pension funds have expressed concerns over the level of quantitative easing employed by the Bank of England and the corresponding effect it will have on annuities which are likely to fall in line with bond prices.

Oil prices rise after European Coldsnap

This month’s cold snap has led to an increase in the price of crude oil. The freezing weather was felt throughout Europe with temperatures falling into the -20s in Germany and parts of Eastern Europe.  The recent trade issues with Iran have given rise to further concerns over the supply of oil and have prompted further upward pressure on fuel prices. Iran have threatened an EU oil embargo prohibiting sales to six European countries.