Bank of England chief economist warns of ‘significant’ response to market turmoil Uk economy A “significant” response is needed from the Bank of England to stem the pound’s slump and UK borrowing costs from accelerating rapidly, the central bank’s chief economist said today. Huw Pill said it is “difficult not to conclude” the Bank must hike interest rates steeply at its next meeting on 3 November after markets were [...]
Pound stems losses against US dollar as Kwarteng courts City executives markets The pound stemmed losses against the US dollar today and UK borrowing costs fell after they accelerated at a record pace yesterday. Sterling strengthened 1.04 per cent to $1.0795 during early exchanges in the City. The currency is still trading at a multi-decade low against the dollar and has shed around 20 per cent since [...]
London’s FTSE 100 dragged down by house builders as more rate hikes loom markets London’s FTSE 100 fell today driven lower by house builders tumbling on the prospect of higher interest rates. The capital’s premier index lost 0.12 per cent to drop to 7,012.47 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.35 per cent to 17,660.11 [...]
Analysis: Pound slump is bad, but UK bond market is carnage September 26, 2022 Focus on the pound today was understandable, from a media perspective. “Pound tumbles to record low against US dollar” is a great headline. Analysts at investment bank Nomura said sterling may plunge to $0.95 in the first three months of next year. Blimey. But, it’s the turmoil in the UK bond markets that was the [...]
London’s FTSE 100 squeezes out gain as house builders tumble September 26, 2022 London’s FTSE 100 squeezed out a small gain today despite investors ditching house builders in response to the Bank of England signalling it will hike interest rates sharply. The capital’s premier index edged 0.03 per cent higher to below the 7,020.95 points, while the domestically-focused mid-cap FTSE 250, which is more aligned with the health [...]
Pound slides after Bank of England bats away emergency rate hike pressure September 26, 2022 Sterling collapsed to an all time low this morning as investor confidence evaporated in the wake of the government’s plans to slash taxes and ramp up borrowing in a ‘mini-budget’ last week.
Inflation forces one in three Brits to trade down to cheaper products September 26, 2022 Brits are trading down to cheaper products in response to rampant inflation squeezing their finances, a survey published today shows. A third of consumers are buying more own brand products, while one in four are turning to cheaper retailers in a bid to cap their weekly shop, according to consultancy KPMG. The research illustrates the [...]
Investors to examine retailers’ books for signs of spending slump September 25, 2022 Investors will be parsing over a slew of results from top retailers for signs of a slowdown in consumer spending in response to an economic slump. London’s premier FTSE 100 index notched a poor performance last week, shedding 3.62 per cent to close at 7,018.60 points, mainly driven by a sharp sell off on Friday [...]
Pound crashes to fresh 37-year low against US dollar after Kwarteng tax bonfire September 23, 2022 The pound plunged to a new historic low against the US dollar in response to new chancellor Kwasi Kwarteng launching the biggest round of tax cuts since 1972 at today’s mini-budget. Sterling crashed over one per cent against the greenback to $1.1108, its lowest level in 37 years. The pound has been on a downward [...]
Liz Truss cost of living support fails to prevent new consumer confidence low September 23, 2022 Liz Truss’s cost of living support has done nothing to lift Brits’ optimism out of the doldrums, a closely watched survey published today reveals. Consumer confidence collapsed five points over the last month to minus 49, the lowest since research firm GfK started tracking the figures in 1974. The survey was carried out between early [...]
