Pound on crash course to record low against US dollar September 1, 2022 The pound is on course to plunge to a record low against the US dollar driven by the UK tumbling into a tough recession, City economists warned today. Sterling will drop to $1.05 by the middle of next year, but could fall close to parity with the greenback, according to consultancy Capital Economics. The downbeat [...]
Inflation could soar to over 22 per cent if gas prices stay high, Goldman warns August 30, 2022 Inflation could soar to the highest level since 1975 if global gas prices do not fall from their historic highs, a Wall Street investment bank warned today. The cost of living would climb to a peak of 22.4 per cent if the energy watchdog is forced to heap even more woe onto households by passing [...]
Brits ‘batten down hatches’ ahead of bleak winter August 30, 2022 Brits are “battening down the hatches” ahead of an exceptionally tough winter marred by sky-high energy bills, economists warned today. Households are cooling spending on credit cards and putting money aside in savings accounts to keep their finances intact to withstand a historic shock to their living standards. Brits spent £700m on credit cards last [...]
Bank of England may launch biggest rate hike since 1989 if energy bill support fuels inflation August 26, 2022 The Bank of England may have to launch the biggest rate hike since 1989 if the government injects huge sums of money into the economy to cope with the cost of living crisis, a Wall Street bank said today. Borrowing costs could rise 75 basis points in November to deal with a historic inflation peak [...]
World’s central banking elite gather in Jackson Hole amid darkening inflation clouds August 25, 2022 The world’s central banking elite are convening at the US Jackson Hole resort today with a bleak inflation backdrop looming over the annual event for the first time in decades. Chiefs of the US Federal Reserve and the Bank of England will deliver remarks that will be closely watched by investors for clues on how [...]
Government is ‘running out of time’ to save British households from energy crisis August 25, 2022 The government is “running out of time” to save businesses and households from the inflation crisis, one of the country’s largest business groups has warned today. Policymakers should be launching measures now to shield Britons from the looming long recession, the British Chambers of Commerce (BCC) said today. The BCC has written to chancellor Nadhim [...]
Sharpening inflation concerns weigh on FTSE 100 retailers August 23, 2022 Sharpening concerns over high inflation triggering a slowdown in consumer spending weighed on London markets today. The capital’s premier FTSE 100 index dropped 0.61 per cent to 7,488.11 points, while the mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.99 per cent to 19,306.89 points. Retailers [...]
Inflation surge pushes UK economy to edge of stagnation August 23, 2022 Brits reining in spending amid a historic inflation surge has steered the UK economy to the edge of “stagnation,” a closely watched survey released today shows. S&P Global’s flash composite purchasing managers’ index (PMI), which measures activity across the private sector, dropped to 50.9 this month, down from 52.1 in July. The figures indicate “the [...]
Inflation to peak at more than 18 per cent, reckon Citi forecasters August 22, 2022 Inflation is set to surge above levels seen during the oil price shock in the late 1970s in a sign the UK economy is hurtling toward a long slump, new forecasts published today show. The cost of living will climb to 18.6 per cent in January, pushed higher by the energy watchdog hiking the cap [...]
Weekend Read: Is Britain headed for a summer recession? August 21, 2022 Britain has met the first half of the technical recession definition, meaning there is a small chance we are headed for a summer recession. The Bank of England thinks the country will tip into the longest recession since the financial crisis in the final three months of this year. Figures published last week by the [...]