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 [...]
Markets bracing for tough week: China trade slows as zero-Covid policy has disastrous impact on economy May 9, 2022 With China continuing to pursue its zero-Covid policy the restrictions in Shanghai are having a chilling effect on economic output there, as well as port activity, or rather the lack of it, as container ships continue to sit off the Chinese coast waiting to be unloaded. This morning’s China trade data for April only serves to reinforce [...]
Coy consumer ‘raises the risk’ of UK recession May 9, 2022 The risk of the UK being thrown into a recession is building, according to closely watched forecasts published today that chime with the Bank of England’s recent contraction warning. Households leaving their £180bn pandemic savings war chests largely untouched in the face of greater uncertainty “raises the risk of recession,” according to new forecasts by [...]
London economy squeezed by inflation grip in sign of looming UK-wide slowdown May 9, 2022 London’s economy is being choked by intensifying inflationary pressures in a sign that the rest of the UK is headed for a period of weaker growth, reveals a fresh survey released today. Concerns about a reduction in consumer spending in response to the worst cost of living crunch in 30 years has pushed London business [...]
Aussie investors are poised for a UK green investment splurge, says National Australia Bank exec May 9, 2022 Australian firms are readying a further splurge of investment into the UK to capitalise a boom in renewable energy and infrastructure projects, according to a top National Australia Bank executive.