US debt ceiling: “Agreement in principle” to end default showdown May 28, 2023 The White House has reached an “agreement in principle” with the Republicans on a deal to limit federal spending and resolve a looming debt crisis, House Speaker Kevin McCarthy has confirmed. The deal on a two-year budget is believed to include a debt-limit increase and enhanced work requirements for food aid. Mr McCarthy said he [...]
Chancellor Jeremy Hunt says Bank must act – even if hikes slow UK economy May 26, 2023 Chancellor Jeremy Hunt has backed interest rate hikes being used to calm soaring inflation even if they increase the risk of pushing the UK into recession. Mr Hunt insisted in an interview aired on Friday that the “only path to sustainable growth” is to bring down the high prices behind the cost-of-living crisis. The Bank [...]
Top City investor: Rate hikes and gilt spike WILL throw UK economy into recession May 26, 2023 A top Square Mile economist has warned that further rate hikes and the increasing price of government debt means the UK will struggle to avoid recession. Speaking to the BBC’s Today programme this morning, Abrdn’s investment director Luke Hickmore said that incomes were set to come “under a lot of pressure” after the Square Mile [...]
FTSE 100 close: London index extends losses as pound slides and bond yields soar May 25, 2023 London’s FTSE 100 continued yesterday’s wobble today driven by investors fretting over how high the Bank of England will have to send interest rates to tame sticky inflation. The capital’s premier index slipped 0.74 per cent to 7,570.88 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the [...]
Germany tips into recession and analysts warn economy won’t get much better May 25, 2023 Germany slipped into an official recession over the winter, triggered by family finances being crushed by sky high energy bills, official figures out today show. Revised estimates from the country’s statistics agency, Destatis, revealed gross domestic product (GDP) contracted 0.3 per cent in the first three months of this year. The organisation previously thought output [...]
FTSE 100 close: Bank of England rate fears after inflation overshoot send house builders tumbling May 24, 2023 London’s FTSE 100 tanked today amid a sell off in companies that are poised to come under pressure from the Bank of England continuing to hike interest rates to tame inflation. The capital’s premier index slid 1.75 per cent to 7,615.22 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the [...]
Bank of England to hike interest rates to 5.5 per cent to tame scorching inflation May 24, 2023 The Bank of England will have to hike interest rates to a peak of 5.5 per cent to tame steaming inflation, threatening to push the UK economy back to the edge of recession, markets bet today after fresh numbers showed price pressures are withstanding rate rises. Upward moves in financial markets’ expectations for peak UK [...]
Why today’s inflation numbers are much, much worse than you think May 24, 2023 Inflation in the UK has trimmed to its lowest level in over a year. It has also dropped out of the double digits for the first time since last August. Hooray! These are milestones that shouldn’t be welcomed with much joy, especially given that outside of the last 18 months or so, inflation barely budged [...]
Inflation falls out of double digits to lowest level in a year but tops forecasts May 24, 2023 UK inflation has fallen into single digits but the price of food continues to spiral at the fastest rate in four decades.
FTSE 100 close: Stress over US debt ceiling talks drag London index as IMF ditches UK recession forecast May 23, 2023 London’s FTSE 100 nipped lower today as investors zeroed in on the latest developments in talks between Republicans and Democrats about raising the debt ceiling. The capital’s premier index slipped 0.1 per cent to 7,762.96 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped [...]
