US recession risk remains as Fed seeks to tame inflation August 3, 2022 | City Talk After its latest rate rise, the Federal Reserve has signalled the pace of hikes could slow. But a recession may still be necessary to bring runaway inflation under control. The Federal Reserve raised interest rates by another 75 basis points (bps) at its July meeting, but indicated that the pace could slow from here. In [...]
Sheepish consumers deal blow to UK services economy August 3, 2022 Consumers cutting spending in response to a historic inflation surge has weighed on growth in the UK’s services economy, reveals a closely watched survey published today. Brits are being squeezed by soaring living costs eroding their incomes, prompting them to cut unnecessary spending to protect their finances. As a result, growth in the services industry [...]
Threat of stagflation returns for first time since 1970s as UK enters early stage of drawn-out recession August 3, 2022 The UK is in the early stages of a drawn out recession that will tip millions of households into financial crisis, reveals fresh forecasts published today. An inflation surge driven by an unprecedented rise in energy bills will steer the economy into recession this quarter and keep it there until early months of next year, [...]
Bank of England to rip up history books at this week’s rate decision August 3, 2022 Soaring inflation will force the Bank of England to do something it has never done since it was made independent 25 years ago, City economists are betting. Governor Andrew Bailey and the rest of the monetary policy committee (MPC) will hike interest rates 50 basis points this Thursday. The move would also mark the sixth [...]
London’s FTSE 100 tips into red despite BP and Shell’s best efforts August 2, 2022 Historic profits at oil giant BP nearly pushed London’s FTSE 100 into positive territory today. The capital’s premier index edged 0.06 per cent lower to 7,409.11 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped over one per cent to below 20,000 points. Oil [...]
City giant under fire: BP’s £6.9bn profit labelled ‘obscene’ as energy bills and living costs skyrocket August 2, 2022 After oil giant BP said this morning that it made almost £7bn in profit, the result has been labbeled as “obscene”. Earlier today the company announced underlying replacement cost profits – its preferred measure – jumped to a far better-than-expected $8.5bn (£6.9bn) for the three months to June 30. But the announcement has caused anger [...]
Where next for Coinbase’s share price? August 2, 2022 | City Talk Ahead of Coinbase announcing Q2 earnings on Tuesday 9 August, we look at what we can expect and how this might impact their share price. Coinbase share price All eyes are on whether Coinbase will negatively surprise once more after its first-quarter results where expectations of a positive reading suffered a loss of $1.98 per [...]
Nervous homeowners on edge as mortgage rates hit highest level since 2016 with market fading fast August 2, 2022 The latest Bank of England data found last week that net borrowing of mortgage debt by individuals decreased to £5.3bn in June, from £8bn in May. Approvals for house purchases, an indicator of future borrowing, decreased to 63,700 in June, from 65,700 in May, which is below the 12-month pre-pandemic average up to February 2020 [...]
Man Group shares dive as choppy markets spark fall in assets under management August 2, 2022 Shares in fund management giant Man Group plunged nearly six per cent this morning after it reported a dip in its assets under management and warned that market turbulence may lead to volatile flows in the months ahead.
Six charts that show why high food prices aren’t going away August 2, 2022 Russia’s invasion of Ukraine prompted a sharp jump in the price of some food commodities and the impact looks set to be long-lasting. Price moves for some agricultural commodities have been dramatic since Russia invaded Ukraine at the end of February. The chart below shows how prices have jumped, with wheat gaining most. We believe [...]