Bank of England sends interest rates to 14-year high but slows hike cycle to 50 points December 15, 2022 The Bank of England today sent interest rates to their highest level since October 2008, although it slowed the pace of increases to avoid unnecessarily intensifying a looming recession by squeezing households and businesses’ finances. Threadneedle Street’s monetary policy committee (MPC) voted 6-3 in favour of a 50 basis point rise to 3.5 per cent, [...]
Mini budget drama: UK banks face wave of ‘exotic’ forex derivatives claims after collapse of Pound December 15, 2022 Legal disputes between banks and their business customers are expected following the collapse in the value of sterling against the U.S. Dollar and the volatility of other currencies. The dramatic volatility of currencies over the last few months will have led to many businesses facing substantial losses from complex Forex derivatives contracts they had entered [...]
EXCL – UK investors abandon Sunak and Hunt as only one in four have faith in Tory economic policy December 15, 2022 Just over one in four UK investors have faith in Tory economic policy, with the majority concerned about slowing economic growth, according to new research shared exclusively with Morning Wire today. In fact, less than a third believe Jeremy Hunt is the right person to be chancellor. Just 27 per cent have confidence in the [...]
US Federal Reserve ushers in global rate hike slow down with 50 point rise December 14, 2022 The US Federal Reserve has tamed the pace of its aggressive interest rate hike campaign tonight, but signalled borrowing costs will eventually peak much higher than previously expected. Chair Jerome Powell and the rest of the federal open market committee (FOMC) backed a 50 basis point rise in the world’s most important interest rate, climbing [...]
FTSE 100 shrugs off rosy inflation numbers as house builders drop December 14, 2022 London’s FTSE 100 shrugged off upbeat figures today that indicated the UK’s inflation surge may have finally passed its peak. The capital’s premier index edged 0.09 per cent lower to 7,495.93 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.25 per cent to [...]
CPI and the FED in focus December 14, 2022 | City Talk Another interesting week in markets this time round, where it could end up being crunch time for the FED to make a decision on when these rate hikes are going to end. We’ve just had the November CPI print out of the US and have had some massive moves. Which begs the question, do the [...]
‘At last!’: City cheers signs of UK inflation passing its peak December 14, 2022 The City has cheered fresh figures out today that revealed this year’s historic inflation surge may have finally turned a corner. Prices accelerated 10.7 per cent over the year to November, down from a 41-year high rate of 11.1 per cent in the previous month, according to the Office for National Statistics (ONS). The fall [...]
Global markets surge after US inflation data signals early Fed hike exit December 13, 2022 Global markets received a huge boost today from another positive US inflation print. London’s premier FTSE 100 index closed 0.76 per cent higher at 7,502.89 points, while its mid-cap domestically-focused counterpart, the FTSE 250 index, climbed 1.42 per cent to 19,086.29 points. The pair had been fairly muted for most of the morning session. But, [...]
Sir Richard Branson: No new investment in Brexit Britain December 13, 2022 Sir Richard Branson has ruled out investing new cash in the UK for the foreseeable future, claiming the economy has been hamstrung by trade barriers and “red tape” brought on by Brexit.
Bank of England calls for tighter rules on LDI market after mini-budget chaos December 13, 2022 Tighter oversight of the pensions industry is needed to ensure it can “withstand severe but plausible market moves” similar in size to those seen in the aftermath of Liz Truss’s disastrous mini-budget in September, the Bank of England said today. The recommendation from the Bank’s financial policy committee (FPC) has been sparked by concerns over [...]