Week ahead: City shapes up for possible double-digit inflation August 14, 2022 The City is bracing for a week brimming with big economic announcements that will shed more light on the health of the UK economy. London’s premier FTSE 100 index notched a decent performance last week, gaining nearly one per cent to close at a shade over 7,500 points. The mid-cap domestically-focused FTSE 250 index, which [...]
UK’s professional services sector weathers economic headwinds August 13, 2022 The UK’s professional services sector has continued to grow its turnovers in the face of major economic headwinds, new UK government data shows. The accountancy sector’s turnovers increased 3.7 per cent, from £3.41bn in May to £3.54bn in June, the Office for National Statistics (ONS) data shows. The country’s legal sector also saw its turnovers [...]
What the new interest rates mean for the City: ‘The UK fares worse than the EU and US’ August 13, 2022 The Bank of England’s decision to further raise interest rates from 1.25 per cent to 1.75 per cent and its two-year predictions means bad news for investors and UK residents alike. And the pain is far from over. A top City analyst expects this to further rise to 2.25 per cent in September. Other than [...]
UK economy shrinks by 0.6 per cent as Britain heads for winter recession August 12, 2022 The UK economy contracted by 0.6 in June and shrank 0.1 per cent between April and June, compared to growth of 0.8 per cent in the previous three months, the Office for National Statistics said this morning. Commenting on the gross domestic product (GDP) figures that showed a 0.1 per cent contraction in the second [...]
UK jobs market still holding up despite recession warnings August 12, 2022 The UK jobs market is defying gloomy recession forecasts, but economists have warned joblessness could rise as the country limps into the worst of the cost of living crisis, a new survey published today reveals. Vacancies surged to 1.85m last month, the highest this year, in a sign employers are still trying to grab new [...]
Ailing Haleon drags FTSE 100 lower as traders cheer cooling US inflation August 11, 2022 An ongoing slide in GSK and its consumer pharmaceutical spin out firm Haleon’s shares dragged London’s FTSE 100 lower today. The capital’s premier index fell 0.55 per cent lower to 7,465.91 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped 0.26 per cent to [...]
Truss backs Bank of England review to ensure ‘it is fit for purpose’ August 11, 2022 The biggest overhaul of the Bank of England in 25 years may be needed to ensure “it is fit for purpose,” Tory leadership front-runner Liz Truss’s campaign told City A.M. today. The comments represent an escalation in Truss’s drive to shake up the regime overseeing the Bank’s performance. She has promised to review Threadneedle Street’s [...]
Economic slowdown set to hit legal sectors’ bumper profits, new research shows August 11, 2022 The past year’s boom in dealmaking acted as a boon to the UK’s legal sector in leading to a major uptick in work for British clients. However, the economic downturn could reverse law firms’ fortunes and dent their profitability, new research from Thomson Reuters shows. Global law firms operating in the UK market saw their [...]
Why bargain hunters should be shopping in Europe, not the US August 11, 2022 | City Talk Value stocks in Europe are the “unloved of the unloved”, but they have actually offered more growth than growth stocks. Here, three charts tell the story. The value investor has become something of an endangered species over the last decade, pushed to the side-lines of a market fixated on seeking never-ending growth in areas such [...]
Four charts that make the case for value investing August 11, 2022 | City Talk The more the world changes, the more value investing remains a compelling investment strategy. Here’s why “Plus ça change, plus c’est la même chose”. Or, in English: “The more things change, the more they stay the same”. Nowhere is this more true than in the realm of value investing. Throughout history, humankind has faced profound [...]