House prices may tumble a fifth if Bank of England hikes rates steeply, economists warn September 27, 2022 House prices could tumble as much as 21 per cent if the Bank of England is forced to hike interest rates steeply in response to the government’s tax and borrowing splurge fuelling inflation, City economists have warned. Mortgage affordability – the ratio of a home purchase loan to the size of the borrower’s income – [...]
Kwarteng tells City bosses that ‘we are committed to fiscal discipline’ September 27, 2022 Kwasi Kwarteng has told a group of City bosses today that the government is committed to “fiscal discipline” as the chancellor tries to calm markets and reassure the Square Mile. Kwarteng told them that “we are confident in our long-term strategy to drive economic growth through tax cuts and supply side reform”, and that he [...]
Analysis: Pound slump is bad, but UK bond market is carnage September 26, 2022 Focus on the pound today was understandable, from a media perspective. “Pound tumbles to record low against US dollar” is a great headline. Analysts at investment bank Nomura said sterling may plunge to $0.95 in the first three months of next year. Blimey. But, it’s the turmoil in the UK bond markets that was the [...]
London’s FTSE 100 squeezes out gain as house builders tumble September 26, 2022 London’s FTSE 100 squeezed out a small gain today despite investors ditching house builders in response to the Bank of England signalling it will hike interest rates sharply. The capital’s premier index edged 0.03 per cent higher to below the 7,020.95 points, while the domestically-focused mid-cap FTSE 250, which is more aligned with the health [...]
Pound slides after Bank of England bats away emergency rate hike pressure September 26, 2022 Sterling collapsed to an all time low this morning as investor confidence evaporated in the wake of the government’s plans to slash taxes and ramp up borrowing in a ‘mini-budget’ last week.
Kwarteng to announce supply side reforms in ‘medium-term fiscal plan’ next month September 26, 2022 Kwasi Kwarteng will announce a package of supply side reforms next month in a “medium-term fiscal plan”, the Treasury has announced. The Treasury said it would include “changes to the planning system, business regulations, childcare, immigration, agricultural productivity, and digital infrastructure”, as well as post-Brexit changes financial services regulation. It will also include details on [...]
‘The Future of Money’: book review September 26, 2022 | City Talk Are cryptocurrencies the next big investment, a fad or a currency that will transform the economic and financial landscape? What are some of the advantages and shortcomings of digital currencies? Who will benefit from them? Eswar S. Prasad attempts to address these questions in The Future of Money: How the Digital Revolution Is Transforming Currencies [...]
Inflation forces one in three Brits to trade down to cheaper products September 26, 2022 Brits are trading down to cheaper products in response to rampant inflation squeezing their finances, a survey published today shows. A third of consumers are buying more own brand products, while one in four are turning to cheaper retailers in a bid to cap their weekly shop, according to consultancy KPMG. The research illustrates the [...]
Investors to examine retailers’ books for signs of spending slump September 25, 2022 Investors will be parsing over a slew of results from top retailers for signs of a slowdown in consumer spending in response to an economic slump. London’s premier FTSE 100 index notched a poor performance last week, shedding 3.62 per cent to close at 7,018.60 points, mainly driven by a sharp sell off on Friday [...]
‘There is more to come’: Kwarteng hints at more tax cuts September 25, 2022 Kwasi Kwarteng has strongly hinted he will bring in more tax cuts, after today vowing “there is more to come”. The chancellor said Prime Minister Liz Truss had only been in Number 10 for “19 days” and that the pair wanted to continue on a radical economic path. Kwarteng announced the UK’s largest package of [...]