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Economics

  • FTSE 100 Live: BP tumbles on buyback suspension, Barclays profit boost

    February 10, 2026

    Good morning and welcome back to the Morning Wire liveblog. It was a rocky day for bond markets on Monday as political jitters rippled through the City. The 10-year gilt yield – a key benchmark for the government – rose as much as 10 basis points to 4.62 per cent following news that Scottish Labour [...]

  • Brace yourself for the chaos that will follow Starmer’s departure

    February 10, 2026

    Anas Sarwar is not a name often seen in the pages of Morning Wire but he’s earned his place after yesterday’s hastily announced press conference in which he called for Keir Starmer to resign as Prime Minister. Prior to his intervention there had been radio silence from Starmer’s Cabinet ministers, not one of whom had [...]

  • UK businesses turn to overseas talent and AI as Reeves’ taxes bite

    February 9, 2026

    British businesses are facing a “trade off” as rising costs for employers push firms into investing in overseas talent and leveraging AI.  Whilst businesses are ditching the “wait-and-see” approach that engulfed firms amidst the tax uncertainty ahead of November’s Budget, this has not translated into a hiring upswing, the latest KPMG and REC jobs report [...]

  • UK labour market weakens as hiring and pay growth cools

    February 8, 2026

    The UK labour market continued to lose momentum at the start of 2026, with falling employment, weak hiring demand and easing wage growth reinforcing signs of a sustained slowdown. BDO’s Employment Index fell for a third consecutive month in January to 93.30, its lowest level since March 2011, as businesses pulled back on recruitment amid persistent cost [...]

  • FTSE 100 Live: Starmer unease rattles markets; Big tech sell-off

    February 6, 2026

    Good morning and welcome back to the Morning Wire liveblog. Speculation over Keir Starmer’s future has unleashed a fresh round of market unease as investors dumped the pound, UK equities and long-dated government bonds amid rising political uncertainty. The gulf in price between the UK’s short- and long-term debt – known as the yield curve – reached [...]

  • Bank of England raises alarm on unemployment as interest rates unchanged 

    February 5, 2026

    The Bank of England has held interest rates but policymakers warned that the spiralling unemployment rate and weak growth was weighing down on price growth.  In its decision on Thursday, the Bank’s Monetary Policy Committee voted 5-4 to leave interest rates at 3.75 per cent.  But economists warned that unemployment could jump higher over the [...]

  • UK construction ‘exits tailspin’ but job losses persist as housebuilding slumps

    February 5, 2026

    The UK’s struggling construction sector showed signs it was turning a corner at the beginning of the year even as job losses and shrinking order books persisted. The latest construction Purchasing Manager’s Index (PMI) from S&P Global – which serves as a headline index tracking industry activity – edged up to 46.4, up from 40.1 [...]

  • Bank of England Live: Interest rates held in narrow 5-4 call

    February 5, 2026

    Good morning and welcome to the Morning Wire liveblog. The Bank of England’s monetary committee has decided to hold rates in its first meet of the year. Markets – and Morning Wire‘s own Shadow MPC – had placed their bets on a hold as the Bank continues its gradual chop to the base rate. In [...]

  • Service sector sees longest run of job losses in 16 years

    February 4, 2026

    A new survey suggests that the UK service sector has endured its longest sustained period of job losses in 16 years, despite rising business activity at the start of the year.  Employment in the service sector has decreased in each month since October 2024, according to S&P’s purchasing managers’ index (PMI), with the pace of [...]

  • Bank of England to avoid signalling faster interest rate cuts

    February 4, 2026

    The Bank of England will not signal a faster pace of interest rate cuts over the coming months to combat jobs market woes across the UK economy, with some economists fearing it could send markets mixed messages on monetary policy.  Markets expect interest rates to be held at 3.75 per cent on Thursday due to [...]

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