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By David Robinson
     LONDON (MNI) - Bank of England Monetary Policy Committee member Jonathan
Haskel said in a speech in York that the growth of intangible assets could
impact both policy transmission and financial stability.
     The following are key points from the speech, which did not address current
monetary policy setting:
     --Haskel focussed on his signature research topic: the rapid growth in
firms' intangible assets such as software, reputation and knowledge relative to
tangible capital, such as hardware and buildings.
     Haskel had previously said that Brexit uncertainty could be a key factor
behind recent weakness in UK investment but here he floated the idea that it may
also reflect under-recorded investment in intangibles.
     "Intangibles appear to be part of the story (behind weak investment) but
not all of it," he said.
     --He said that new firms in particular which rely on intangibles may have
to shift their financing away from traditional bank lending which uses
tangibles, such as buildings, as collateral.
     "There are implications for financial stability and monetary policy
transmission, but the overall balance of direction is not clear," he said.
     --Haskel said that the way profits are marked up from intangibles, with
high profile brands, for example, able to achieve premium prices, could impact
the dynamics of output, wages and inflation. 
--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com
[TOPICS: M$B$$$,M$E$$$,M$$BE$]