Barclays predicts a ‘featherbed touchdown’ for UK and US economies

The boss of Barclays said the economy was enjoying a ‘featherbed landing’ as the bank reported an 18 per cent rise in quarterly profits to £2.2billion.

Shares rose 4.2 per cent, or 9.9p, to 248p – a nine-year high, as its consumer lending business performed well and its investment banking arm was buoyed by a surge in corporate dealmaking.

Chief executive CS Venkatakrishnan said the UK and US economies were ‘approaching what anybody would reasonably call a soft landing’ – where authorities bring inflation under control without causing recession.

‘I’ve sometimes called it a featherbed landing, that’s how soft it is,’ said the Barclays boss.

Gentle comedown: Barclays chief executive, CS Venkatakrishnan (pictured), said the UK and US economies were ‘approaching what anybody would reasonably call a soft landing’

He pointed to low unemployment and economic growth on both sides of the Atlantic. 

Investment banking income rose 13 per cent he said due to ‘some large transactions of which we have been an important part’.

The bank advised on deals such as Indian telecoms giant Bharti Global taking a 25 per cent stake in BT, and Verizon buying its rival Frontier Communications for £15billion in the US.