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Economics

  • FTSE 100 reverses early losses on strong Wall Street gains

    July 19, 2022

    London markets whipsawed today as investors’ concerns about a bigger Bank of England rate rise were tamed by strong gains on Wall Street. The capital’s premier FTSE 100 index surged 1.01 per cent to 7,296.28 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed [...]

  • Inflation expected to soar above eye-watering 40-year highs as cost of living onslaught deepens

    July 19, 2022

    When official figures lay bare the extent of the mounting cost-of-living crisis on tomorrow morning, UK inflation is expected to soar even further above current eye-watering 40-year highs. The latest figures from the Office for National Statistics (ONS) will show Consumer Prices Index (CPI) inflation rose to at least 9.3 per cent in June, up [...]

  • Bank of England governor Bailey puts largest rate rise since independence on table

    July 19, 2022

    The biggest rate hike since the Bank of England was made independent 25 years ago is on the table at its next meeting on 4 August, its chief said today. Delivering his annual Mansion House bankers’ dinner speech, Andrew Bailey said “a 50 basis point increase will be among the choices on the table when [...]

  • Mining giant BHP warns of continuing market volatility into 2023

    July 19, 2022

    Mining giant BHP has said it expects market volatility caused by inflationary pressures, labour shortages, and supply chain disruption to continue into 2023. In a trading update, the Australian firm said the war in Ukraine and the energy crisis in Europe will offset any positive economic impacts of China’s stimulus policies on global growth, as [...]

  • Steaming inflation cuts Brits’ spending power at fastest pace on record

    July 19, 2022

    The number of Brits in full time work reached record highs in the three months to May as unemployment rates held at 3.8 per cent, official figures have revealed today.

  • Scenario planning on the ‘net zero’ energy transition

    July 19, 2022  |  City Talk

    For investment managers, prioritising one scenario over all others can have far-reaching consequences. This is especially true when it comes to the energy transition to ‘net zero’ greenhouse gas emissions – achieving a balance between carbon emitted into the atmosphere and carbon removed from it – quite literally a hot topic at present as a [...]

  • London’s FTSE 100 jumps amid receding recession jitters

    July 18, 2022

    Recession fears among investors eased today ahead of a bumper week of economic data. London’s premier FTSE 100 index jumped 0.9 per cent to 7,223.24 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 0.96 per cent to over 19,000 for the first time [...]

  • UK risks losing American investment unless post-Brexit trade disruption is fixed

    July 18, 2022

    The UK risks forgoing a wave of US investment unless it irons out its post-Brexit trading relationship with the European Union (EU), a new report published today warned. The UK-US economic corridor remains strong, but would be strengthened by London cooling tensions with Brussels, according to a report by consultancy Bain and Company and BritishAmerican [...]

  • What a new world order might mean for the global economy

    July 18, 2022  |  City Talk

    Russia’s invasion of Ukraine has opened fault lines between nations which will affect trade relations and investment for years to come. The war in Ukraine is already having a significant effect on inflation and activity in the world economy as commodity prices have soared and supply chains have been disrupted. Inflation in the G7 was [...]

  • Ageing society will lead to decades of weak growth, BoE official warns

    July 18, 2022

    An ageing society will leave the UK economy permanently weaker over the coming decades, an official at the Bank of England said today. Speaking at the Resolution Foundation, Michael Saunders, an outgoing external member of the Bank’s monetary policy committee (MPC), warned Britain will “face increasing challenges from demographic change, because population ageing appears likely [...]

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