Truss or Sunak will need to deliver ‘shot in the arm’ of UK economy July 22, 2022 Rishi Sunak or Liz Truss will need to deliver a “shot in the economic arm” of the country to lift Brits’ confidence out of the doldrums after one of them wins the Conservative leadership race, two closely watched surveys published today reveal. Scorching inflation, the highest interest rates in 13 years and tax hikes have [...]
Scorching inflation sends UK debt interest bill to record-high £19bn July 21, 2022 Scorching inflation has ballooned the UK’s debt interest bill to its highest level since records began in the early 1990s, official figures published today revealed. The amount of money the UK had to pay investors holding government debt in June more than doubled over the last year, topping £19bn, up from £9.1bn in June 2021, [...]
FTSE 100 loses Wall Street bounce as banks falter July 20, 2022 A boost from a bumper day on Wall Street yesterday was not enough to help London’s FTSE 100 finish higher today. The capital’s premier FTSE 100 index shed 0.44 per cent to close at 7,264.31 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, added [...]
FTSE finance chiefs brace for recession July 20, 2022 Britain’s top finance chiefs are bracing for a recession driven by inflation crimping consumers and thinning businesses’ margins, a new survey published today reveals. Chief financial officers (CFO) at the UK’s largest listed companies think there is a 63 per cent chance of the economy swinging into reverse over the next 12 months, according to [...]
Bank of England governor Bailey puts largest rate rise since independence on table July 19, 2022 The biggest rate hike since the Bank of England was made independent 25 years ago is on the table at its next meeting on 4 August, its chief said today. Delivering his annual Mansion House bankers’ dinner speech, Andrew Bailey said “a 50 basis point increase will be among the choices on the table when [...]
Ageing society will lead to decades of weak growth, BoE official warns July 18, 2022 An ageing society will leave the UK economy permanently weaker over the coming decades, an official at the Bank of England said today. Speaking at the Resolution Foundation, Michael Saunders, an outgoing external member of the Bank’s monetary policy committee (MPC), warned Britain will “face increasing challenges from demographic change, because population ageing appears likely [...]
Soaring business costs trigger wave of profit warnings July 18, 2022 Swelling costs have crimped UK companies’ margins, leading to a surge in profit warnings, reveals a new report published today. The volume of profit warnings sounded by UK-listed companies climbed 66 per cent in the first half of this year compared to the same period in 2021, up to 136 from 82, according to EY-Parthenon. [...]
UK banks ramp up lending after Covid-19 support cliff edge July 18, 2022 UK banks are ramping up lending, marking the end of a loan drought after government Covid-19 support schemes were ditched. The total value of lending to UK businesses climbed £12bn to £533bn in the nine months to May, according to research based on Bank of England data published today by debt advisor ACP Altenburg Advisory. [...]
Create investment boosting tax system to end economic malaise, CBI chief urges Tory leadership hopefuls July 13, 2022 Creating a tax system that boosts business investment to lift the UK out of its growth malaise is the only way to solve the country’s economic stagnation. That’s according to the chief of the Confederation of British Industry (CBI), the country’s largest business group. In an open letter to Conservative leadership candidates published today, Tony [...]
Cautious consumers send chill through UK services economy July 5, 2022 Consumers are rolling back spending at pubs, bars and restaurants in response to rampant inflation whacking their budgets, reveals a closely watched survey published today. New business growth in Britain’s services industry, its economic engine, slowed to its worst level in 16 months in June, according to S&P Global’s purchasing managers’ index (PMI). The cool [...]