Why record wage growth could seal another jumbo interest rate rise from Bank of England July 11, 2023 It seems strange to cheer what economists call a “loosening in the labour market”. What that basically means is: employment growth is slowing, joblessness is on the up, vacancies falling and wage growth receding. Most of those requirements were met in today’s release from the Office for National Statistics (ONS). In a shock to the [...]
Mortgage rates climb to 15-year high following surprisingly strong wage growth July 11, 2023 The typical rate available on a two-year fixed mortgage has climbed to a 15-year high, surpassing the levels seen last Autumn in the wake of the disastrous mini-budget. According to Moneyfacts, the average two-year fixed residential mortgage rate hit 6.66 per cent, marginally higher than the 6.65 per cent seen last October. This was the [...]
Stumbling economy allows insolvency specialists Begbies Traynor to cash in after acquisition spree July 11, 2023 Insolvency specialists Begbies Traynor upped its dividend after it saw its pretax profit increase by half in 2023. Pretax profit climbed to £6m from £4m the year before, ahead of market expectations, leading the firm to up its dividend by nine per cent on last year to 3.8p. On an adjusted basis, which excluded the [...]
Shock record wage growth amplifies risk of 14th straight Bank of England interest rate rise July 11, 2023 Workers’ pay is rising faster than expected and at among the quickest paces on record in a sign that the Bank of England will deliver a 14th straight interest rate rise next month, official figures out this morning reveal. Pay excluding bonuses rose 7.3 per cent over the three months to May on an annual [...]
The FTSE 100 has done us all dirty… again July 11, 2023 The FTSE 100 has done us all dirty yet – again. Over and over it marches us up a hill only to send us back down again. Former Bank of England governor Mark Carney is often referred to as the “unreliable boyfriend” of monetary policy making for his comments signalling he and the MPC would [...]
FTSE 100 close: London index muted as interest rate fears linger July 10, 2023 London’s FTSE 100 kicked off a new week just about in the green today as a reduction in UK debt costs gave the index a reprieve from a torrid time of late. The capital’s premier index edged 0.23 per cent higher to close at 7,273.80 points, while the domestically-focused mid-cap FTSE 250, which tends to [...]
Bank of England won’t hesitate to hike rates if inflation persists, warns Andrew Bailey July 10, 2023 The Bank of England will have to keep on lifting interest rates if wages keep rising at a near record pace and businesses continue to pass on swelling costs, Governor Andrew Bailey has signalled today. In a speech delivered at the annual Mansion House bankers’ dinner, Bailey said price pressures emanating from the labour market [...]
House prices: Buyers playing ‘wait and see’ on purchases rattles confidence July 10, 2023 Property portal On The Market has warned of a challenging outlook for the year ahead as aggressive rate rises have led buyers to “wait and see” on house purchases whilst the market remains unsettled. The estate agent, which operates similar to Rightmove and Zoopla, told investors this morning that stubborn inflation and the high cost [...]
Barratt Developments share price in focus following Bank of England rate rise July 10, 2023 The market will turn its focus to Barratt Developments’ trading update next Thursday to see how soaring mortgage rates and a tumultuous period for the property sector is impacting UK house building companies. The housebuilder’s shares have fallen by around a tenth over the past 12 months and more than half from their pre-pandemic levels, [...]
Accelerating redundancies ‘big concern’ for UK economy as firms sweat over recession July 10, 2023 Accelerating redundancies sparked by businesses sweating over whether the UK economy is on course for a recession are a “big concern” for the country, experts have warned today. Company layoffs have pushed the volume of unemployed workers available for jobs to its highest level since December 2020, when the UK was in the teeth of [...]