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 [...]
Bank of England orders lenders to strengthen reserves amid ‘deteriorating’ economy July 5, 2022 The Bank of England yesterday ordered lenders to fortify their defences in preparation for the looming economic downturn, warning the City against “excessive” cuts in lending to households and businesses. The central bank, which oversees Britain’s banking sector and the country’s monetary policy, doubled the proportion of money lenders need to keep in reserve to [...]
Friedman served us well, but now it’s time to challenge his view of corporate purpose July 4, 2022 THE traditionally-accepted purpose of a business, as famously espoused by Milton Freidman, has been to earn a profit for its owners or shareholders. This concept stood for many years as fundamental and non-negotiable. The investment world has historically been managed on two dimensions: risk and return. For an investor, the question has typically been: how [...]
Week ahead: Traders eye rate setter speeches for signs of quicker tightening July 3, 2022 Investors this week will be looking for signs of the Bank of England launching a 50 basis point rate rise at its next meeting on 4 August. London’s premier FTSE 100 index posted a mild performance over last week, dropping 0.56 per cent to end at 7,168.65 points. The domestically-focused mid-cap FTSE 250 index however [...]
Payday: City law firm hikes starting salary for junior lawyers to £120k July 2, 2022 Square Mile law firm Herbert Smith Freehills has boosted its starting salary for junior lawyers to £120,000, as the City pay battle wages on. The firm has hiked pay for junior lawyers by 24 per cent, in a bid to compete with other law firms also increasing staff pay. The increase comes as Bank of [...]
Zero sympathy: Jacob Rees-Mogg slams ‘selfish’ and ‘unnecessary’ strikes July 1, 2022 Brexit Minister Jacob Rees-Mogg has hit out at “selfish” strikers, claiming that they are hampering productivity in the Civil Service. The Minister for Brexit Opportunities and Government Efficiency was about the numbers of people in the Civil Service who have returned to the office. “Well, they were getting better until the railways went on strike,” [...]
Britain needs to respond to the ‘kindness of strangers’ July 1, 2022 Britain has always been an attractive place for investors to park their money. The country’s economic dynamism has helped it pull in billions of pounds of investment, mainly toward its world-leading services industry and financial services businesses. Although the City’s banks, insurers and brokers have contributed a great deal to UK growth, the country is [...]
Mortgage costs expected to grow by another £2,500 as inflation spirals July 1, 2022 The cost of a mortgage is expected to grow by another £2,500 by the end of this year, in comparison with December 2021, according to property site Zoopla today. Economists anticipate “sharp” hikes to mortgage rates in the coming months, as the Bank of England seeks to tame spiralling inflation, which is already at 9.1 [...]
Mounting downturn jitters send London’s FTSE 100 lower June 30, 2022 Mounting concerns about a global economic downturn sent London’s top indexes tumbling today. The capital’s premier FTSE 100 index shed 1.96 per cent to close at 7,169.28 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 1.95 per cent to 18,666.78 points. A combination [...]
No cost of living crisis for Prince Charles as Duchy of Cornwall’s assets swell to record £1.2bn after £93m ‘staycation’ boost June 30, 2022 Annual accounts published this afternoon show that the total assets of the Duchy of Cornwall’s landed estate have risen to more than £1.2bn, a jump of nearly £93m since last year. As heir to the throne, the Prince of Wales is entitled to the Duchy’s profits as his yearly private income, which came to £23m [...]