UK headed for ‘deep recession’ on political turmoil and soaring interest rates October 24, 2022 The UK could be hurtling toward a “deep recession” caused by a mixture of political turmoil and soaring prices forcing the Bank of England to hike interest rates steeply, a closely watched survey out today reveals. Britain’s private sector economy shrank sharply this month, with contraction rates returning to levels last seen in January 2021 [...]
Brits cutting spending sends profit warnings soaring October 24, 2022 Brits cutting spending in response to the cost of living crunch has driven a sharp uptick in the number of businesses warning profits will fall short of expectations, a new report out today shows. Some 86 listed companies issued a profit warning in the three months to September, up from 51 over the same period [...]
Central banks’ Covid QE splurge was a ‘mistake’, ex BoE governor King says October 23, 2022 Central banks were wrong to inject money into their respective economies through quantitative easing during the pandemic, the former governor of the Bank of England said today. Speaking to the BBC, Mervyn King, who steered the central bank through the global financial crisis, accused central banks of losing “control of inflation”. The Bank’s decision to [...]
Week ahead: Drama in Westminster to grip City, but don’t forget about ECB October 23, 2022 The City’s attention will be gripped by the race to Number 10 this week, but there are some substantial economic announcements elsewhere in the pipeline that deserve a closer look. The European Central Bank (ECB), the monetary authority of the 19 countries using the euro, is expected to hike interest rates 75 basis points for [...]
Truss mini-budget boosts Brits’ confidence as experts warn against austerity 2.0 October 21, 2022 Brits’ confidence in their finances and the economy bumped higher in the aftermath of former prime minister Liz Truss’s mini-budget, a closely watched survey published today reveals. Consumer confidence rose for the first time since last November this month, up to minus 47 from a record low minus 49, according to research firm GfK. Optimism [...]
UK borrowing costs cool after Truss quits as shortest serving PM ever October 20, 2022 UK borrowing costs scaled lower today after Liz Truss exited as the shortest serving prime minister on record at 44 days. Yields on the 10-year gilt dropped around 27 basis points to 3.8 per cent after Truss resigned in the early afternoon. They had been trending higher during early trading. Rates on the 30-year gilt, [...]
Doubts cast over 31 October fiscal statement after Truss resignation October 20, 2022 There are growing doubts over whether the fiscal statement will be delivered on 31 October following Liz Truss’s resignation as prime minister today after just 44 days in office, City A.M. understands. Truss’s exit has triggered a second Tory leadership race this year that is expected to yield a new prime minister on 28 October, [...]
Bank of England’s Broadbent urges markets to curb rate expectations October 20, 2022 One of the Bank of England’s top officials has today warned markets not to get carried away with the number of rate rises coming down the line. Ben Broadbent, a member of the monetary policy committee (MPC) and a deputy governor at the Bank, said Threadneedle Street’s internal calculations worked out the response to the [...]
Demand destruction? Two reasons to be sceptical October 20, 2022 | City Talk Global central banks have made an ‘all-in’ effort to front-load monetary policy tightening to dampen demand. But softer economic data in the eurozone and United States have exacerbated recession fears. As the growth outlook dims, many anticipate demand destruction to lead to lower inflation. That is, tighter monetary policy and the associated higher funding costs [...]
Crypto has ‘serious deficiencies in governance’, warns Bank of England official October 19, 2022 A Bank of England official warned there are “serious deficiencies in governance” in the crypto ecosystem today as she laid out a vision for the industry to win back trust from investors.