Inflation to peak at more than 18 per cent, reckon Citi forecasters August 22, 2022 Inflation is set to surge above levels seen during the oil price shock in the late 1970s in a sign the UK economy is hurtling toward a long slump, new forecasts published today show. The cost of living will climb to 18.6 per cent in January, pushed higher by the energy watchdog hiking the cap [...]
Weekend Read: Is Britain headed for a summer recession? August 21, 2022 Britain has met the first half of the technical recession definition, meaning there is a small chance we are headed for a summer recession. The Bank of England thinks the country will tip into the longest recession since the financial crisis in the final three months of this year. Figures published last week by the [...]
Week ahead: Powell to commit to more rate hikes in Jackson Hole speech August 21, 2022 The world’s investors will be closely watching the annual gathering of the cream of the central banking crop at this year’s Jackson Hole symposium in the state of Wyoming. London’s premier FTSE 100 index notched a reasonable performance last week, squeezing out a 0.66 per cent gain to close at 7,550.37 points. Its mid-cap rival, [...]
Dire economy drags UK consumer confidence down to lowest level ever August 19, 2022 “Exasperation” with the plight of the UK economy has eroded consumer confidence to the lowest level ever, reveals a closely watched survey published today. Households are being downtrodden by a string of bleak economic news, uncertainty over how they will cope with sky-high energy bills during the winter months and sharp fall in spending power. [...]
Ex-dividend shares tame FTSE gains as UK bond yields hit fresh 14-year high August 18, 2022 Traders ditching companies that have yet to announce the details of their next shareholder giveaway tamed London markets’ gains today. The capital’s premier FTSE 100 index jumped 0.35 per cent to 7,541.85 points, while the domestically-focused mid-cap FTSE 250, which is more aligned with the health of the UK economy, climbed 0.55 per cent higher [...]
Historic inflation surge to swell UK debt interest bill to over £200bn August 18, 2022 A historic inflation surge is set to swell the UK’s debt interest bill to over £200bn, top economists have warned today. Britain’s public purse is set to come under intense pressure over the next two years that may cause the government to miss their borrowing fiscal rule, according to the Institute for Fiscal Studies (IFS). [...]
Bank of England to launch another jumbo rate hike to tame over 10 per cent inflation August 17, 2022 The Bank of England is set to launch a series of jumbo rate hikes to tame inflation that is beginning to be driven by domestic factors, City economists warned today. Prices climbed 10.1 per cent annually in July, the fastest acceleration since February 1982 and much higher than the Bank and analysts’ forecasts, according to [...]
Inflation overshoot spooks investors as FTSE 100 house builders tumble August 17, 2022 London markets were shaken today by concerns that inflation is firming in the UK as housebuilders suffered heavy losses on the prospect of more rate hikes. The capital’s premier FTSE 100 index dropped 0.27 per cent lower to 7,515.75 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of [...]
Bank of England’s recession warning hits UK consumer confidence August 17, 2022 Fears of a protracted recession as long as the one caused by the financial crisis is weighing on Brits’ optimism, a new survey released today showed. Consumer confidence dipped four points at the beginning of August, according to Bank of America. “Confidence remains weak, consistent with recession, and all components worsened,” the Wall Street giant [...]
Over half of money managers bet on global recession this year August 16, 2022 Over half of investors are fretting over the global economy tumbling into recession this year, new figures released today show. Some 58 per cent of money managers think global output will shift into reverse, up from a minority of 47 per cent, according to Bank of America’s latest global fund managers’ survey. The latest reading [...]