HSBC shares sink to bottom of FTSE 100 despite profits topping City forecasts October 25, 2022 HSBC’s profits slid over 40 per cent in the third quarter of the year as it was hit by rising loan losses and hefty charges relating to the sale of its French retail business.
UK borrowing costs fall after Sunak wins race to No 10 October 24, 2022 UK borrowing costs fell sharply today after former chancellor Rishi Sunak seized the keys to Number 10 following leadership contender Penny Mordaunt’s withdrawal. Yields on the 10-year gilt fell around 30 basis points today to below four per cent. Yields and prices move inversely. They had been falling in early morning trading after Boris Johnson [...]
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 [...]
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 [...]
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 [...]
Truss and Kwarteng did not brief BoE on mini-budget, dep governor Cunliffe says October 19, 2022 Liz Truss or former chancellor Kwasi Kwarteng did not tell the Bank of England of their plans to slash taxes £45bn in last month’s botched mini-budget, one of the central bank’s executives said today. Sir Jon Cunliffe, the Bank’s deputy governor of financial stability, told the treasury select committee today the government did not brief [...]
Analysis: This shapeshifting inflation surge ain’t over yet October 19, 2022 Today’s inflation figures may have caused a few chairs to be flung at walls in the Bank of England. Prices are up 10.1 per cent over the year to September, above the City’s expectations and up from August. They were in line with the Bank’s forecasts though, a genuine rarity. Remember, the central bank has [...]
Bank of England to launch record rate rise to step up fight against 40-year high inflation October 19, 2022 The Bank of England will have to hike interest rates by a record whole percentage point at its meeting on 3 November, City economists are betting today after inflation returned to a 40 year high of 10.1 per cent last month. Prices are still rising sharply despite the Bank already lifting borrowing costs seven times [...]