The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living. Important events BETA filters Key Events (4) UK (5) USA (4)
House prices continue to rise in August despite the squeeze
UK house prices continued to rise last month, despite cost-of-living pressure hitting households, according to Nationwide. Prices rose 0.8% in August, much more than expected, as the market continued to defy the economic problems plaguing Britain. The annual growth rate slowed to 10.0%, from 11% in July, pushing the average price to a new record of £273,751. This means the average house price has risen by almost £50,000 in the last two years. Robert Gardner, chief economist at Nationwide, predicts the market could slow as inflation picks up: There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer applications in recent months and the number of mortgage approvals for home purchases falling below pre-pandemic levels. However, the slowdown to date has been moderate and combined with a lack of inventory in the market, means that price growth has remained steady. “We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation remaining in double digits next year. In addition, the Bank of England is widely expected to continue raising interest rates, which will also have a negative impact on the market if this feeds into mortgage rates, which have already risen significantly in recent months. According to @AskNationwide AVG, UK house prices defy gravity by 0.8% in August. This is the 13th consecutive monthly inclusion, resulting in an AVG house price of £273,751. Despite annual growth remaining in double digits, there is an inevitability in the autumn air that is chilly pic.twitter.com/5Aw7nDgdcv — Emma Fildes (@emmafildes) September 1, 2022 European stock markets hit their lowest level in nearly seven weeks, with the Stoxx 600 down 0.9%.
Reckitt steps down as CEO to resign
Products manufactured by Reckitt Benckiser. Photo: Stephen Hird/Reuters Shares in consumer goods giant Reckitt Benckiser fell 5.5% after the announcement of the resignation of chief executive officer Laxman Narasimhan. Narasimhan will step down at the end of the month, with senior independent director Nicandro Durante stepping in while the board “assesses and selects future leadership”. Reckitt, the company behind Dettol, Nurofen and Durex, told shareholders that: Laxman decided for personal and family reasons to move back to the United States and was approached about an opportunity to live there. Narasimhan has served three years as CEO of Reckitt, guiding the company through the pandemic and then the economic shock from the Ukraine war, which led to price increases: Victoria Scholar, Head of Investments at interactive investor says: Despite significant share price moves in both directions, the stock has changed little since the start of his tenure as CEO. That said, the consumer goods giant has successfully navigated the challenging post-Covid inflationary environment by raising prices for shoppers to successfully offset price pressures without dampening consumer demand. London’s stock market got off to a weak start in September, hit by worries about the economic outlook at home and abroad. The FTSE 100 fell to a six-week low, shedding 65 points, or 0.9%, to open at 7,219. Miners Glencore (-5%) and Antofagasta (-2.9%), insurance group Admiral (-3.5%) and engineering group Rolls-Royce (-3.3%) are among the decliners, as a slowdown in Asian factories worries investors. This follows further losses on Wall Street last night, despite a rise in US consumer confidence yesterday. Mark Haefele, chief investment officer at UBS Global Wealth Management, says markets may remain volatile as central bankers try to slow inflation: The market reaction underscores our view that investors had underestimated the willingness of central banks to continue tightening. We expect further volatility and a skewing of equity exposures towards value, quality income and defence.” A flurry of bearish factory surveys from across Asia showed activity eased in August as high costs, economic uncertainty and China’s Covid-19 lockdowns hit companies. Manufacturing activity was weak in Japan, South Korea and Taiwan, in a sign that companies already hit by supply chain problems are also facing weaker demand. China’s factories also suffered, with power outages adding to their difficulties. UK Chancellor Nadhim Zahawi said nothing is off the table as the government assesses how to deal with rising energy prices. Speaking to Sky News, Mr Zahawi said the government was “looking at all options” and acknowledged that “absolutely” viable” businesses were at risk of collapse: “Everything from the chief executive of Scottish Power talking about help where we need to maybe set up some sort of fund for the companies to be able to continue to help their customers. All the way to make sure that we target the help to both households and small and medium-sized businesses and possibly some larger businesses because one of my concerns is the scarring effect on the economy if they’re fully viable businesses in hospitality, freelance time, in Energy-intensive businesses will really suffer or cease to exist because of Putin’s use of energy as a weapon.” The fall in the pound in August “reflects a worsening outlook for Britain’s economy,” the Financial Times reported, as economic and political uncertainty intensified. Adds: Philip Shaw, chief economist at Investec in London, said the rapid fall in sterling was “very worrying” as it reflected concerns that if Truss was appointed prime minister, her government’s policies would diverge from the BoE. [Bank of England]. UK government bonds also sold off this month more aggressively than the debt of other major European bonds, such as Germany. George Saravelos, global head of FX research at Deutsche Bank, said investors were right to question whether the UK fiscal and monetary mix was appropriate and how it would affect inflation.
The pound falls below $1.16
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020 as concern over the UK economy grows. The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living.
Introduction: The UK is facing a ‘frankly terrifying’ fall in living standards
Good morning and welcome to our rolling coverage of business, the global economy and financial markets. Britain is facing the biggest squeeze on living standards for a century, a new report into the challenge facing the next prime minister shows. In a desperately worrying forecast, real household disposable income is on track to fall by 10% this year and next. As inflation soars, rising prices mean that all real wage growth since 2003 will have been wiped out. The Resolution Foundation fears that the number of people living in absolute poverty is expected to rise by three million to 14 million people in 2023-2024. And one in three children could fall into relative poverty, the highest level since peaks in the 1990s. The resolution warns that Britain faces a bleak winter for life…
title: “Pound Falls Below 1.16 As Uk Faces Deepest Living Standards Squeeze In A Century Business Live Business Klmat” ShowToc: true date: “2022-11-18” author: “William Adams”
The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living. Important events BETA filters Key Events (4) UK (5) USA (4)
House prices continue to rise in August despite the squeeze
UK house prices continued to rise last month, despite cost-of-living pressure hitting households, according to Nationwide. Prices rose 0.8% in August, much more than expected, as the market continued to defy the economic problems plaguing Britain. The annual growth rate slowed to 10.0%, from 11% in July, pushing the average price to a new record of £273,751. This means the average house price has risen by almost £50,000 in the last two years. Robert Gardner, chief economist at Nationwide, predicts the market could slow as inflation picks up: There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer applications in recent months and the number of mortgage approvals for home purchases falling below pre-pandemic levels. However, the slowdown to date has been moderate and combined with a lack of inventory in the market, means that price growth has remained steady. “We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation remaining in double digits next year. In addition, the Bank of England is widely expected to continue raising interest rates, which will also have a negative impact on the market if this feeds into mortgage rates, which have already risen significantly in recent months. According to @AskNationwide AVG, UK house prices defy gravity by 0.8% in August. This is the 13th consecutive monthly inclusion, resulting in an AVG house price of £273,751. Despite annual growth remaining in double digits, there is an inevitability in the autumn air that is chilly pic.twitter.com/5Aw7nDgdcv — Emma Fildes (@emmafildes) September 1, 2022 European stock markets hit their lowest level in nearly seven weeks, with the Stoxx 600 down 0.9%.
Reckitt steps down as CEO to resign
Products manufactured by Reckitt Benckiser. Photo: Stephen Hird/Reuters Shares in consumer goods giant Reckitt Benckiser fell 5.5% after the announcement of the resignation of chief executive officer Laxman Narasimhan. Narasimhan will step down at the end of the month, with senior independent director Nicandro Durante stepping in while the board “assesses and selects future leadership”. Reckitt, the company behind Dettol, Nurofen and Durex, told shareholders that: Laxman decided for personal and family reasons to move back to the United States and was approached about an opportunity to live there. Narasimhan has served three years as CEO of Reckitt, guiding the company through the pandemic and then the economic shock from the Ukraine war, which led to price increases: Victoria Scholar, Head of Investments at interactive investor says: Despite significant share price moves in both directions, the stock has changed little since the start of his tenure as CEO. That said, the consumer goods giant has successfully navigated the challenging post-Covid inflationary environment by raising prices for shoppers to successfully offset price pressures without dampening consumer demand. London’s stock market got off to a weak start in September, hit by worries about the economic outlook at home and abroad. The FTSE 100 fell to a six-week low, shedding 65 points, or 0.9%, to open at 7,219. Miners Glencore (-5%) and Antofagasta (-2.9%), insurance group Admiral (-3.5%) and engineering group Rolls-Royce (-3.3%) are among the decliners, as a slowdown in Asian factories worries investors. This follows further losses on Wall Street last night, despite a rise in US consumer confidence yesterday. Mark Haefele, chief investment officer at UBS Global Wealth Management, says markets may remain volatile as central bankers try to slow inflation: The market reaction underscores our view that investors had underestimated the willingness of central banks to continue tightening. We expect further volatility and a skewing of equity exposures towards value, quality income and defence.” A flurry of bearish factory surveys from across Asia showed activity eased in August as high costs, economic uncertainty and China’s Covid-19 lockdowns hit companies. Manufacturing activity was weak in Japan, South Korea and Taiwan, in a sign that companies already hit by supply chain problems are also facing weaker demand. China’s factories also suffered, with power outages adding to their difficulties. UK Chancellor Nadhim Zahawi said nothing is off the table as the government assesses how to deal with rising energy prices. Speaking to Sky News, Mr Zahawi said the government was “looking at all options” and acknowledged that “absolutely” viable” businesses were at risk of collapse: “Everything from the chief executive of Scottish Power talking about help where we need to maybe set up some sort of fund for the companies to be able to continue to help their customers. All the way to make sure that we target the help to both households and small and medium-sized businesses and possibly some larger businesses because one of my concerns is the scarring effect on the economy if they’re fully viable businesses in hospitality, freelance time, in Energy-intensive businesses will really suffer or cease to exist because of Putin’s use of energy as a weapon.” The fall in the pound in August “reflects a worsening outlook for Britain’s economy,” the Financial Times reported, as economic and political uncertainty intensified. Adds: Philip Shaw, chief economist at Investec in London, said the rapid fall in sterling was “very worrying” as it reflected concerns that if Truss was appointed prime minister, her government’s policies would diverge from the BoE. [Bank of England]. UK government bonds also sold off this month more aggressively than the debt of other major European bonds, such as Germany. George Saravelos, global head of FX research at Deutsche Bank, said investors were right to question whether the UK fiscal and monetary mix was appropriate and how it would affect inflation.
The pound falls below $1.16
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020 as concern over the UK economy grows. The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living.
Introduction: The UK is facing a ‘frankly terrifying’ fall in living standards
Good morning and welcome to our rolling coverage of business, the global economy and financial markets. Britain is facing the biggest squeeze on living standards for a century, a new report into the challenge facing the next prime minister shows. In a desperately worrying forecast, real household disposable income is on track to fall by 10% this year and next. As inflation soars, rising prices mean that all real wage growth since 2003 will have been wiped out. The Resolution Foundation fears that the number of people living in absolute poverty is expected to rise by three million to 14 million people in 2023-2024. And one in three children could fall into relative poverty, the highest level since peaks in the 1990s. The resolution warns that Britain faces a bleak winter for life…
title: “Pound Falls Below 1.16 As Uk Faces Deepest Living Standards Squeeze In A Century Business Live Business Klmat” ShowToc: true date: “2022-10-21” author: “Stanley Griego”
The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living. Important events BETA filters Key Events (4) UK (5) USA (4)
House prices continue to rise in August despite the squeeze
UK house prices continued to rise last month, despite cost-of-living pressure hitting households, according to Nationwide. Prices rose 0.8% in August, much more than expected, as the market continued to defy the economic problems plaguing Britain. The annual growth rate slowed to 10.0%, from 11% in July, pushing the average price to a new record of £273,751. This means the average house price has risen by almost £50,000 in the last two years. Robert Gardner, chief economist at Nationwide, predicts the market could slow as inflation picks up: There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer applications in recent months and the number of mortgage approvals for home purchases falling below pre-pandemic levels. However, the slowdown to date has been moderate and combined with a lack of inventory in the market, means that price growth has remained steady. “We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation remaining in double digits next year. In addition, the Bank of England is widely expected to continue raising interest rates, which will also have a negative impact on the market if this feeds into mortgage rates, which have already risen significantly in recent months. According to @AskNationwide AVG, UK house prices defy gravity by 0.8% in August. This is the 13th consecutive monthly inclusion, resulting in an AVG house price of £273,751. Despite annual growth remaining in double digits, there is an inevitability in the autumn air that is chilly pic.twitter.com/5Aw7nDgdcv — Emma Fildes (@emmafildes) September 1, 2022 European stock markets hit their lowest level in nearly seven weeks, with the Stoxx 600 down 0.9%.
Reckitt steps down as CEO to resign
Products manufactured by Reckitt Benckiser. Photo: Stephen Hird/Reuters Shares in consumer goods giant Reckitt Benckiser fell 5.5% after the announcement of the resignation of chief executive officer Laxman Narasimhan. Narasimhan will step down at the end of the month, with senior independent director Nicandro Durante stepping in while the board “assesses and selects future leadership”. Reckitt, the company behind Dettol, Nurofen and Durex, told shareholders that: Laxman decided for personal and family reasons to move back to the United States and was approached about an opportunity to live there. Narasimhan has served three years as CEO of Reckitt, guiding the company through the pandemic and then the economic shock from the Ukraine war, which led to price increases: Victoria Scholar, Head of Investments at interactive investor says: Despite significant share price moves in both directions, the stock has changed little since the start of his tenure as CEO. That said, the consumer goods giant has successfully navigated the challenging post-Covid inflationary environment by raising prices for shoppers to successfully offset price pressures without dampening consumer demand. London’s stock market got off to a weak start in September, hit by worries about the economic outlook at home and abroad. The FTSE 100 fell to a six-week low, shedding 65 points, or 0.9%, to open at 7,219. Miners Glencore (-5%) and Antofagasta (-2.9%), insurance group Admiral (-3.5%) and engineering group Rolls-Royce (-3.3%) are among the decliners, as a slowdown in Asian factories worries investors. This follows further losses on Wall Street last night, despite a rise in US consumer confidence yesterday. Mark Haefele, chief investment officer at UBS Global Wealth Management, says markets may remain volatile as central bankers try to slow inflation: The market reaction underscores our view that investors had underestimated the willingness of central banks to continue tightening. We expect further volatility and a skewing of equity exposures towards value, quality income and defence.” A flurry of bearish factory surveys from across Asia showed activity eased in August as high costs, economic uncertainty and China’s Covid-19 lockdowns hit companies. Manufacturing activity was weak in Japan, South Korea and Taiwan, in a sign that companies already hit by supply chain problems are also facing weaker demand. China’s factories also suffered, with power outages adding to their difficulties. UK Chancellor Nadhim Zahawi said nothing is off the table as the government assesses how to deal with rising energy prices. Speaking to Sky News, Mr Zahawi said the government was “looking at all options” and acknowledged that “absolutely” viable” businesses were at risk of collapse: “Everything from the chief executive of Scottish Power talking about help where we need to maybe set up some sort of fund for the companies to be able to continue to help their customers. All the way to make sure that we target the help to both households and small and medium-sized businesses and possibly some larger businesses because one of my concerns is the scarring effect on the economy if they’re fully viable businesses in hospitality, freelance time, in Energy-intensive businesses will really suffer or cease to exist because of Putin’s use of energy as a weapon.” The fall in the pound in August “reflects a worsening outlook for Britain’s economy,” the Financial Times reported, as economic and political uncertainty intensified. Adds: Philip Shaw, chief economist at Investec in London, said the rapid fall in sterling was “very worrying” as it reflected concerns that if Truss was appointed prime minister, her government’s policies would diverge from the BoE. [Bank of England]. UK government bonds also sold off this month more aggressively than the debt of other major European bonds, such as Germany. George Saravelos, global head of FX research at Deutsche Bank, said investors were right to question whether the UK fiscal and monetary mix was appropriate and how it would affect inflation.
The pound falls below $1.16
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020 as concern over the UK economy grows. The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living.
Introduction: The UK is facing a ‘frankly terrifying’ fall in living standards
Good morning and welcome to our rolling coverage of business, the global economy and financial markets. Britain is facing the biggest squeeze on living standards for a century, a new report into the challenge facing the next prime minister shows. In a desperately worrying forecast, real household disposable income is on track to fall by 10% this year and next. As inflation soars, rising prices mean that all real wage growth since 2003 will have been wiped out. The Resolution Foundation fears that the number of people living in absolute poverty is expected to rise by three million to 14 million people in 2023-2024. And one in three children could fall into relative poverty, the highest level since peaks in the 1990s. The resolution warns that Britain faces a bleak winter for life…
title: “Pound Falls Below 1.16 As Uk Faces Deepest Living Standards Squeeze In A Century Business Live Business Klmat” ShowToc: true date: “2022-10-22” author: “Paul Propst”
The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living. Important events BETA filters Key Events (4) UK (5) USA (4)
House prices continue to rise in August despite the squeeze
UK house prices continued to rise last month, despite cost-of-living pressure hitting households, according to Nationwide. Prices rose 0.8% in August, much more than expected, as the market continued to defy the economic problems plaguing Britain. The annual growth rate slowed to 10.0%, from 11% in July, pushing the average price to a new record of £273,751. This means the average house price has risen by almost £50,000 in the last two years. Robert Gardner, chief economist at Nationwide, predicts the market could slow as inflation picks up: There are signs that the housing market is losing some momentum, with surveyors reporting fewer new buyer applications in recent months and the number of mortgage approvals for home purchases falling below pre-pandemic levels. However, the slowdown to date has been moderate and combined with a lack of inventory in the market, means that price growth has remained steady. “We expect the market to slow further as pressure on household budgets intensifies in the coming quarters, with inflation remaining in double digits next year. In addition, the Bank of England is widely expected to continue raising interest rates, which will also have a negative impact on the market if this feeds into mortgage rates, which have already risen significantly in recent months. According to @AskNationwide AVG, UK house prices defy gravity by 0.8% in August. This is the 13th consecutive monthly inclusion, resulting in an AVG house price of £273,751. Despite annual growth remaining in double digits, there is an inevitability in the autumn air that is chilly pic.twitter.com/5Aw7nDgdcv — Emma Fildes (@emmafildes) September 1, 2022 European stock markets hit their lowest level in nearly seven weeks, with the Stoxx 600 down 0.9%.
Reckitt steps down as CEO to resign
Products manufactured by Reckitt Benckiser. Photo: Stephen Hird/Reuters Shares in consumer goods giant Reckitt Benckiser fell 5.5% after the announcement of the resignation of chief executive officer Laxman Narasimhan. Narasimhan will step down at the end of the month, with senior independent director Nicandro Durante stepping in while the board “assesses and selects future leadership”. Reckitt, the company behind Dettol, Nurofen and Durex, told shareholders that: Laxman decided for personal and family reasons to move back to the United States and was approached about an opportunity to live there. Narasimhan has served three years as CEO of Reckitt, guiding the company through the pandemic and then the economic shock from the Ukraine war, which led to price increases: Victoria Scholar, Head of Investments at interactive investor says: Despite significant share price moves in both directions, the stock has changed little since the start of his tenure as CEO. That said, the consumer goods giant has successfully navigated the challenging post-Covid inflationary environment by raising prices for shoppers to successfully offset price pressures without dampening consumer demand. London’s stock market got off to a weak start in September, hit by worries about the economic outlook at home and abroad. The FTSE 100 fell to a six-week low, shedding 65 points, or 0.9%, to open at 7,219. Miners Glencore (-5%) and Antofagasta (-2.9%), insurance group Admiral (-3.5%) and engineering group Rolls-Royce (-3.3%) are among the decliners, as a slowdown in Asian factories worries investors. This follows further losses on Wall Street last night, despite a rise in US consumer confidence yesterday. Mark Haefele, chief investment officer at UBS Global Wealth Management, says markets may remain volatile as central bankers try to slow inflation: The market reaction underscores our view that investors had underestimated the willingness of central banks to continue tightening. We expect further volatility and a skewing of equity exposures towards value, quality income and defence.” A flurry of bearish factory surveys from across Asia showed activity eased in August as high costs, economic uncertainty and China’s Covid-19 lockdowns hit companies. Manufacturing activity was weak in Japan, South Korea and Taiwan, in a sign that companies already hit by supply chain problems are also facing weaker demand. China’s factories also suffered, with power outages adding to their difficulties. UK Chancellor Nadhim Zahawi said nothing is off the table as the government assesses how to deal with rising energy prices. Speaking to Sky News, Mr Zahawi said the government was “looking at all options” and acknowledged that “absolutely” viable” businesses were at risk of collapse: “Everything from the chief executive of Scottish Power talking about help where we need to maybe set up some sort of fund for the companies to be able to continue to help their customers. All the way to make sure that we target the help to both households and small and medium-sized businesses and possibly some larger businesses because one of my concerns is the scarring effect on the economy if they’re fully viable businesses in hospitality, freelance time, in Energy-intensive businesses will really suffer or cease to exist because of Putin’s use of energy as a weapon.” The fall in the pound in August “reflects a worsening outlook for Britain’s economy,” the Financial Times reported, as economic and political uncertainty intensified. Adds: Philip Shaw, chief economist at Investec in London, said the rapid fall in sterling was “very worrying” as it reflected concerns that if Truss was appointed prime minister, her government’s policies would diverge from the BoE. [Bank of England]. UK government bonds also sold off this month more aggressively than the debt of other major European bonds, such as Germany. George Saravelos, global head of FX research at Deutsche Bank, said investors were right to question whether the UK fiscal and monetary mix was appropriate and how it would affect inflation.
The pound falls below $1.16
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020 as concern over the UK economy grows. The pound has fallen as low as $1.1565 this morning as the energy crisis hammers businesses and consumers, hitting Britain’s economic outlook. The selloff comes after the pound posted its worst month against the dollar since October 2016. The pound against the US dollar Photo: Refinitiv Fears that the UK is heading for recession pushed sterling down 4.5% against the dollar in August. the dollar continues to strengthen as America’s central bank promises to keep raising interest rates. Avatrade’s Naeem Aslam says sterling is “absolutely battered” against the dollar on concerns about the cost of living crisis. Consumers in the UK are being squeezed at a level not seen for almost a century, and the hope is that the new Prime Minister will offer some sort of relief package, which should be in the billions, to ease the current crisis. Liz Truss, the bookies’ favorite to be the next Prime Minister, has already ruled out any tax rises this year or an energy bill next winter. Her second promise seems tenuous because the energy crisis is almost inevitable and it would be very difficult to avoid energy restriction. However, the most important thing that matters to consumers is not the energy voucher but, in fact, a support package that can reduce their standard of living.
Introduction: The UK is facing a ‘frankly terrifying’ fall in living standards
Good morning and welcome to our rolling coverage of business, the global economy and financial markets. Britain is facing the biggest squeeze on living standards for a century, a new report into the challenge facing the next prime minister shows. In a desperately worrying forecast, real household disposable income is on track to fall by 10% this year and next. As inflation soars, rising prices mean that all real wage growth since 2003 will have been wiped out. The Resolution Foundation fears that the number of people living in absolute poverty is expected to rise by three million to 14 million people in 2023-2024. And one in three children could fall into relative poverty, the highest level since peaks in the 1990s. The resolution warns that Britain faces a bleak winter for life…
