Covid variant, China invasion of Taiwan and more inflation: What shocks will 2023 bring? January 8, 2023 A new Covid-19 variant that escapes vaccines is among the biggest risks threatening to sharpen the UK recession, City economists surveyed by Morning Wire suspect. Asked what wildcard trends could spring up to hit the economy this year, experts warned another deadly strain of the virus spreading is one of the biggest headwinds that would [...]
Week ahead: UK economy to enter recession in all but name as JP Morgan kicks off earnings season January 8, 2023 The UK economy is set to enter a recession in all but name after official figures out later this week will likely reveal output slumped again in November. Fresh gross domestic product (GDP) numbers, set to be released on Friday, will top London investors’ minds in a week that sees Wall Street banking giants kick [...]
Rishi Sunak hits back at critics of inflation promise but warns government ‘can’t help anybody’ if prices don’t fall January 8, 2023 Rishi Sunak has today claimed halving inflation by the end of the year – one of his five promises to the British public – will happen “because of the plans [the government] have put in place”. Speaking to the BBC’s Sunday with Laura Kuenssberg programme, the prime minister doubled down on a series of pledges [...]
TSB: Quarter of fraud payment victims denied money back in new scheme as regulator urged to rethink January 7, 2023 TSB is urging a regulator to reconsider proposals which could mean one in four people who are tricked into transferring money to a fraudster being denied their money back. The bank said the Payment Systems Regulator (PSR) should reconsider the plans for a new bank transfer fraud refund mechanism that would allow banks to exclude [...]
FTSE 100: Anglo American and Glencore power London premier index to 2019 high January 6, 2023 The FTSE 100 has extended its strong start to the year by closing at its highest level since the summer of 2019 today, powered by mining giants in London trading. The capital’s premier index clinched the landmark after a late afternoon surge, finishing up 0.87 per cent at 7,699.49 points. Miners led the FTSE 100 [...]
US Data in Focus as we begin 2023 January 6, 2023 | City Talk Back again for another year of trading and our focus immediately shifts to the world’s largest economy in the midst of the impending global recession that we are looking at heading into the rest of 2023. As manufacturing has showed a continuing slowdown this week we turn our attention to the first non-farm payrolls release [...]
US economy adds more jobs than expected in headache for Fed January 6, 2023 The US economy added more jobs than expected last month, but cooling wage growth may convince the Federal Reserve to hold off on repeating jumbo interest rate hikes this year, official figures out today reveal. Some 223k Americans bagged a new job last month, down slightly from November, according to data from the US Bureau [...]
Recession spreads to British construction as experts brace for a jump in unemployment and the cost of living January 6, 2023 British builders are being dragged into a slump by the recession that has taken hold in the wider economy, a closely watched survey has revealed.. S&P Global and the Chartered Institute of Procurement and Supply’s (CIPS) final purchasing managers’ index (PMI) for the construction sector for December fell to 48.8 from 50.4. The reading means [...]
European inflation falls quicker than expected but recession fears will weigh on likely ECB rate hikes January 6, 2023 Inflation in Europe is falling faster than expected, but there are signs the worldwide price surge that is set to bring on a global recession may not be finished just yet, official figures out today reveal. A flash estimate by stats agency Eurostat for the rate of price increases in the eurozone came in at [...]
Pound sterling: 2023 could be another torrid year as it tumbles to November low against US dollar January 6, 2023 The pound has tumbled to its lowest level against the US dollar since November, pushed down by investors on both sides of the Atlantic betting the Federal Reserve will keep raising interest rates aggressively this year. The currency dropped a shade over 0.2 per cent to $1.19 this morning, leaving it trading at pre-Christmas levels. [...]