A slip into recession is a token of the Conservatives’ failure to govern our country May 11, 2022 The word recession has not been thought about for years, but after the Bank of England announced that we should expect it by the end of 2022, it has been placed at the front of people’s minds. Of course, external factors do play a massive role in this; the Russian invasion of Ukraine has disrupted [...]
UK recession lurks around corner as thousands face extreme poverty without more support May 11, 2022 A recession in the UK is just around the corner and the economy will stay in the doldrums without a major policy overhaul, a top think tank warned today. Britain’s economy will contract in the third and fourth quarters of this year, meeting the grade for a technical recession, the National Institute of Economic and [...]
Cost of borrowing surges as overdraft rates hit record highs: Credit card fees back to the ’90s May 10, 2022 Data covering quoted household interest rates on consumer credit products released by the Bank of England this week reveal the rising cost of borrowing for UK households, With the Bank hiking interest rates by 0.25bp last Thursday and inflation expected to show a climb yet again for April, the fresh data demonstrates the difficult decisions [...]
US-UK trade deal ‘never going to happen’, warns former Bank of England bigwig as he says high inflation is down to Brexit May 10, 2022 Most of the UK’s inflation is a direct result of Brexit, according to a former heavyweight at the Bank of England. Former BoE policymaker Adam Posen, said that around 80 per cent of the reason why the IMF expects UK’s inflation to remain high is directly linked to Britain’s departure from the EU. The economist, [...]
Concoction of risks trigger global sell off to kick start week May 9, 2022 A ratcheting up in anxieties over the possibility of the global economy hurtling toward a sharp slowdown wiped billions off the value of the world’s top companies today. London’s FTSE 100 index plunged 2.32 per cent to points, while the domestically-focused mid-cap FTSE 250 index tumbled 2.59 per cent. Investors ditched London stocks on the [...]
The City View: Analysing the G7 plan to phase out Russian oil May 9, 2022 Today Andy Silvester talks to City A.M. reporters Nicholas Earl and Leah Montebello. They go through the G7’s decision to phase out Russian oil, historically elevated gas prices, unpick Snapchat owner Snap Inc.’s plan to compete with the likes of TikTok, and break down Uber’s CEO Dara Khosrowshahi’s recent letter to employees. And in the [...]
Jacob Rees-Mogg: Sure, the cost of living crisis is ‘difficult’ but the government cannot just spend its way out it May 9, 2022 Senior Tory Jacob Rees-Mogg said hard-pressed households are facing a “difficult” future as inflation rises but he warned the Government cannot spend its way out of the problem. The Brexit Opportunities Minister said increasing public spending to mitigate the impacts of the rising cost of living risked adding to inflation, pushing prices higher. The squeeze [...]
Inflation could surge beyond our bleakest forecast, BoE rate setter warns May 9, 2022 A member of the Bank of England’s group of rate setters has today warned inflation could surge above its own worst expectations. Michael Saunders, an external member of the monetary policy committee (MPC), said unless interest rates keep rising, “inflation pressures [will] probably be greater and more persistent” than the Bank expects. The alert chimes [...]
An A-Z of sustainability terms for investors May 9, 2022 Sustainability, once a fringe consideration, has become core for many investors. Impacts on the planet – such as climate change and biodiversity loss – and on people – for example through the treatment of workers – are in the news every day. We believe companies and countries that adapt to such issues and challenges should thrive. [...]
Could UK economy be more fragile than BoE believes? May 9, 2022 At its May meeting, the Bank of England’s (BoE) Monetary Policy Committee decided to raise interest rates by 25 basis points (bps) to a 13-year high of 1.00%. All nine members considered policy tightening to be appropriate given the strength of the labour market and persistence of domestic inflationary pressures. However, three policymakers went one [...]