IoD: Higher wages will stoke inflation September 24, 2021 The chief economist of the Institute of Directors (IoD) has predicted severe worker shortages plaguing the UK economy will trigger a sharp rise in prices. Kitty Ussher, chief economist at the IoD, told City A.M. she expects “a step-change in wage rates for high-demand skills that will put upward pressure on prices in the short-term.” [...]
Anxiety about soaring living costs weighs down UK consumer confidence September 24, 2021 Intense anxiety about sharp rises in the cost of living is weighing down Brits’ confidence levels, according to fresh data published today. Consumer confidence in the UK slid five points to minus 13 in September, driven by Brits sharpening their focus on the spectre of inflation and tax hikes looming over their living standards. Empty [...]
BoE warns inflation will top previous forecast but takes no action September 23, 2021 The Bank of England warned today soaring energy and raw materials prices will push inflation above its previous forecasts, but did nothing to rein in price rises. Officials on Threadneedle Street upped their inflation forecasts for the year to above four per cent, over double its target. Despite the higher than expected inflation clip, the [...]
Drill, baby, drill: Arctic set for £230bn oil and gas bonanza with JPMorgan, Barclays and Citi piling in September 23, 2021 Oil and gas companies are set to ramp up production in the Arctic by 20 per cent in the next five years, according to a new report shared with City A.M. this morning. The main Arctic expansionists – Gazprom, Total and ConocoPhillips – are backed by hundreds of billions of pounds from dozens of City [...]
Spectre of ‘stagflation’ looms over UK economy September 23, 2021 The UK economy is in real danger of undergoing a period of “stagflation” as prices soar and growth slows to a snail’s pace, according to a closely watched survey released today. The latest IHS Markit / CIPS UK composite output index dropped to 54.1 in September, down from August’s reading of 54.8. Chris Williamson, chief [...]
Markets today: Fed tilts towards a taper, Bank of England up next September 23, 2021 European markets underwent another strong session yesterday, as concerns about Evergrande diminished further, while markets in the US shook off their early week malaise by finishing close to the highs of the day in the wake of last night’s Fed meeting, which despite what looked like a fairly neutral statement, saw the central bank outline [...]
Thatcherite think tank urges UK to shake off EU regulatory regime September 23, 2021 An influential Thatcherite think tank has called for Britain to shake up its regulatory regime to ensure legacy EU rules do not crowd out innovation after Brexit. The Institute for Economic Affairs (IEA) has urged the government to introduce a “British innovation principle” to avoid choking the UK economy’s competitiveness. The IEA warned the UK’s [...]
Government must ‘level up’ foreign investment across Britain, urges select committee September 23, 2021 An influential commons select committee has criticised the government for failing to map out its plan for spreading foreign investment more evenly across the UK to achieve its “levelling up agenda”. The International Trade Committee (ITC) slammed the government in a report published today for promoting foreign investment’s role in boosting economic prosperity in forgotten [...]
Cloudy outlook to prompt MPC to hold fire on rates and QE September 23, 2021 A slowing economic recovery from the Covid-19 crisis, sharp energy price rises and tax hikes squeezing Brits’ household incomes are likely to prompt the Bank of England’s committee of rate setters to err on the side of caution today. The Bank’s monetary policy committee (MPC) will announce its latest decision on rates and the fate [...]
US Fed to rein in bond buying soon but keeps rates steady September 22, 2021 The US Federal Reserve held rates at record lows today, but did formally recognise it will likely rein in bond buying this year. The Federal Open Market Committee (FOMC) kept rates unmoved at 0-0.25 per cent, but said if the economy continues on a positive trajectory, it “judges that a moderation in the pace of [...]