Banks urge Kwarteng to act now with November budget ‘way too far away’

Ggood morning. The pound has plunged into the red again after two major interventions last night rekindled investor concerns about the UK’s tax cut. In an extraordinary development, the IMF urged Prime Minister Liz Truss to reverse its economic policy, notably pointing to the decision to abolish the higher income tax rate. Credit rating agency … Read more

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

China benefits as Putin cuts energy prices – live updates

Ggood morning. China is spending a record amount on Russian energy as it continues to expand its reliance on the Kremlin in the wake of the war in Ukraine. Beijing last month made a record $8.3 billion (£7.3 billion) on a haul with a record amount of coal. In the six months since the start … Read more

Russian economy won’t recover from war in Ukraine ‘until 2030’

Ggood morning. There is more bad economic data this morning as August retail sales fell at the fastest pace in eight months. The amount of goods sold in-store and online fell 1.6 percent from July, according to the ONS. That decline was three times greater than predicted. Sales fell across all categories – the first … Read more

BP in line for huge payday from Putin’s energy company despite pledge to sell stake

BP is lining up for dividends worth hundreds of millions of pounds from Russian oil and gas giant Rosneft, even after pledging to dump its stake in the company. Oil and gas giant FTSE 100 has yet to sell its 19.75 percent of Rosneft and is thus entitled to its share of Rosneft’s 441 billion … Read more

EU fines renewable energy suppliers with €140 billion windfall tax

Ggood morning. There is much needed good news this morning as UK inflation eased slightly in August. The consumer price index fell to 9.9 percent last month, according to the ONS. That is less than 10.1 pc. in July, although it is still not far from the highest level in 40 years. The figure will … Read more

Pound depreciates against dollar as US inflation beats forecast

Ggood morning. UK unemployment has fallen to its lowest level in nearly 50 years as more Britons left the workforce. The latest figures from the ONS showed that 3.6 pc. of adults were unemployed and looking for a job in the three months to the end of July, against 3.8 pc. in the previous quarter. … Read more

Russia’s cash reserves are running out as the West shuns Putin’s energy

Ggood morning. We start the week with more bleak economic data as Britain continues to head into recession. According to new ONS statistics, GDP grew just 0.2 percent in July, after falling 0.6 percent in June due to the platinum anniversary public holiday. That was weaker than expected, with Yael Selfin, chief economist at KPMG, … Read more

European stocks close higher after record ECB interest rate hike

European markets closed higher on Friday as investors reacted to a record rate hike by the European Central Bank and further comments from Federal Reserve Chairman Jerome Powell. The pan-European Stoxx 600 ended up 1.6% for the time being, with all sectors and major exchanges positive. Mining stocks were up 3.2% to gain, while technology … Read more

Truss’s utility bill freezes to bring inflation back under control, economists say

Ggood morning. Energy bills for UK households are being frozen under a new plan that could cost £130 billion. Liz Truss has finalized plans for a new system to prevent the sharp rise in the energy price ceiling from October. The policy could cost as much as £130 billion over the next 18 months, Bloomberg … Read more