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“During some periods both the cost of buying (down payments) and the cost of owning (mortgage repayments) have been high. Mortgage rates biteThe average mortgage repayment has rocketed since late 2021 as the Bank of England, along with other major central banks, began jacking up official interest rates to bring down inflation. (The interest rate on some government bonds is used to set mortgage rates). On Monday, the average rate on a two-year fixed-rate mortgage stood at 5.82%, according to data from product comparison website Moneyfacts. “An election is due within the next year and a new government, committed to helping prospective first-time buyers, might start by acknowledging the challenges younger generations face not just in housing but more generally,” the BSA said.
Persons: Liz Truss, Organizations: London CNN, Building Societies Association, BSA, Office, National Statistics, Bank of England, UK Finance Locations: United Kingdom, London, England, Wales
Consumer prices in Britain rose at the slowest rate in two and a half years, the country’s Office for National Statistics reported on Wednesday. Inflation was 3.2 percent in the year through March, down from 3.4 percent in February but a touch higher than the 3.1 percent economists expected, a sign that the path to cooler inflation could be bumpy. Core inflation, which strips out volatile food and energy prices, was 4.2 percent, down from 4.5 percent the month before. Economists expect inflation to continue to slow over the next few months, possibly going below the Bank of England’s target of 2 percent, as household energy bills fall. Britain’s unemployment rate rose more than expected in its latest reading, published this week.
Organizations: National Statistics, Bank of Locations: Britain
Food prices provided the biggest downward drag on the headline rate, the ONS said, while motor fuels pushed it higher. The core figure, excluding energy, food, alcohol and tobacco, came in at 4.2%, compared with a projection of 4.1%. Services inflation, a key watcher for U.K. monetary policymakers, declined from 6.1% to 6% — again above the expectations of both economists and the BOE. This week, investors have been monitoring signs of a cooling U.K. labor market, with unemployment unexpectedly rising to 4.2% in the period between December and February. The central bank's own forecast is for inflation to "briefly drop" to its 2% target in the spring before increasing slightly.
Persons: BOE, BOE Governor Andrew Bailey Organizations: National Statistics, Bank of England, Reuters, Federal Reserve Locations: U.S
LONDON — U.K. gross domestic product rose 0.1% in February, the Office for National Statistics said on Friday, providing another sign of a return to sluggish economic growth this year. The economy contracted in the third and fourth corners of 2023, putting the U.K. in a technical recession. Construction output, which boosted growth at the start of the year, fell 1.9% in February. The reading "all-but confirms the recession ended" last year, Paul Dales, chief U.K. economist at Capital Economics, said in a note. British inflation fell more than expected in March, to a nearly two-and-a-half year low of 3.4%.
Persons: Paul Dales Organizations: Street, LONDON, National Statistics, Capital Economics Locations: London, England, U.S
The U.K.'s FTSE 100 index is expected to open 31 points higher at 7,949, Germany's DAX up more than 100 points at 18,051, France's CAC 47 points higher at 8,064 and Italy's FTSE MIB 150 points higher at 33,212, according to data from IG. European markets are set to open higher on Friday morning as investors parse through U.K. economic data and reflect on a somewhat murky U.S. inflation outlook. The market moves come after the pan-European Stoxx 600 index closed lower in the previous session. Stateside, investors digested fresh inflation data in search of clues on exactly when the U.S. central bank may start cutting interest rates. In Europe, Britain's economic output increased by 0.1% in monthly terms in February, in line with expectations, according to figures published Friday by the Office for National Statistics.
Persons: Germany's DAX, Dow Jones Organizations: CAC, IG, European Central Bank, U.S, U.S . Federal, Labor Department's Bureau of Labor Statistics, Dow, Office, National Statistics Locations: U.S ., U.S, Europe
But a resurgence in the industry could complicate the Federal Reserve’s ongoing inflation fight, either delaying the first interest rate cut or resulting in fewer cuts this year, some economists say. Interest rates have been at a two-decade high since July, after the Fed raised rates aggressively over the prior year and a half. The economy picking up further strength would spook Wall Street because of what it means for interest rates — and some manufacturers say they’re optimistic about the future. The Bank of Canada announces its latest interest rate decision. China’s National Bureau of Statistics releases March inflation data.
Persons: Joe Biden, , Tom Barkin, , Mary Daly, ” Daly, Jerome Powell, Neel Kashkari, ” Kashkari, ” Richard de Chazal, Blair, they’re “, Amazon’s, It’s, Ramishah Maruf, Amazon, haven’t, Read Organizations: Washington CNN, Institute for Supply Management, Congress, Fed, ” Richmond Fed, ” San Francisco Fed, Minneapolis, Dow, Blair Equity Research, Amazon, Fresh, Delta Air Lines, US Labor Department, Index, Bank of Canada, Federal Reserve, National Bureau of Statistics, Constellation Brands, European Central Bank, JPMorgan Chase, Citigroup, State, National Statistics, The University of Michigan Locations: Richmond , Virginia, ” San, Las Vegas, India, Wells Fargo, Progressive, BlackRock
Is it last orders for London’s nightlife?
  + stars: | 2024-04-06 | by ( Anna Cooban | ) edition.cnn.com   time to read: +9 min
London CNN —It’s Thursday, 11.00 p.m., and on a street in London’s Soho district, there’s a loud clatter. “People haven’t got the money,” she told CNN. “That’s when their bills started coming through, the first heating bills from the winter,” he told CNN. Even before the ravages of the pandemic, the number of London’s nightlife venues was in steady decline. They don’t just go out for the sake of going out now,” she told CNN.
Persons: London CNN —, Lesley Lewis, haven’t, , Michael Kill, Grazyna, ” Kill, , , that’s, Kill’s, Jeremy Joseph, Freddie Mercury, ” Joseph, Jack Henry, Henry, Lutz Leichsenring, Fabian Sommer, Leichsenring, London’s, Sadiq Khan, Amy Lamé, Lamé, Khan, Lamé “, Charlie Fenemer, It’s, Becky Lam, Lam, ” Chris Lau Organizations: London CNN, Staff, CNN, Time Industries Association, York Minister, London, , , German Commission, UNESCO, United Nations, Office, National Statistics, City Hall, Labour, Shady Locations: London’s Soho, London, Wales, Soho , London, Hoxton, London’s, Berlin, “ Berlin, Hong Kong, Soho, Hong, Beijing
People walk along Waterloo Bridge past the City of London skyline, the capital's financial district, on a sunny and mild day. LONDON — U.K. gross domestic product grew 0.2% in January, the Office for National Statistics said Wednesday, as construction output jumped unexpectedly. It follows a 0.1% contraction in December, while the U.K. economy entered a shallow recession in the second half of last year. Construction output was 1.1% higher in January, the ONS said, but fell 0.9% over a three-month period. Services recorded 0.2% growth in January, providing the biggest contribution to growth, as production output fell 0.2%.
Organizations: LONDON, National Statistics, Reuters, Services Locations: London, U.K
Vinyl records are now so hot they move UK inflation
  + stars: | 2024-03-11 | by ( Hanna Ziady | ) edition.cnn.com   time to read: +3 min
London CNN —The prices of vinyl records will feed into UK inflation statistics for the first time since 1992, highlighting a surge in their popularity among British consumers driven in part by Taylor Swift. UK inflation has slowed from 11.1% to 4% but remains above the central bank’s 2% target. LPs — which dropped out of the UK inflation basket more than three decades ago, owing to the rise of CDs and cassettes — have made a huge comeback in recent years. Last year, 6.1 million vinyl records were sold in Britain, the highest number since 1990, according to data from the British Phonographic Industry, an association of UK record companies and labels. Air fryers, rice cakes reflect healthier habitsOther new items in this year’s inflation basket highlight the wider adoption of healthier lifestyles.
Persons: Taylor Swift, Matt Corder, , Taylor Swift’s, Jo Twist, fryer, sanitizer, Organizations: London CNN, National Statistics, Bank of England, British Phonographic Industry, BPI Locations: Britain
Overall, consumer prices rose 0.3% in January 2024 from December 2023, according to the latest Consumer Price Index. The Labor Department releases its Consumer Price Index for February on Tuesday. The drivers of services inflation have been threefold: Vehicle insurance, hospital insurance, and financial services. The US Labor Department releases its Consumer Price Index for February. The US Commerce Department releases February figures on retail sales in addition to January data on business inventories.
Persons: don’t abate, Price, it’s, Bell, Saira Malik, They’ve, I’ve, Biden, Joe Biden, I’m, , Biden’s, Read, Guess Organizations: Washington CNN, Federal Reserve, Labor Department, Oracle, Asana, Vail Resorts, US Labor Department, US Treasury Department, National Statistics, Adobe, Dollar, Sporting Goods, Getty, US Commerce Department, The New York Fed, Manufacturing Index, University of Michigan Locations: Nuveen, Thursday’s State, America
A cut to national insurance — a levy paid by people who work — costing around £10 billion ($12.7 billion) is likely, according to multiple UK media reports. But soaring government debt, crumbling public services and a lackluster economy leave the chancellor with very little room for further substantial giveaways. Christopher Furlong/Getty ImagesOther so-called “unprotected” areas of the national budget, such as social care and the police force, are also at risk. “That seems unlikely when public services are creaking,” they added. OBR chair Richard Hughes said in January that the government had provided no detailed breakdown of departmental spending plans beyond March next year, giving only headline figures.
Persons: Jeremy Hunt, Rishi Sunak’s, Hunt, , Laura Kuenssberg, Jeff, Christopher Furlong, , Richard Hughes, ” Hughes Organizations: London CNN —, Bank of England, Treasury, “ Conservatives, ” Hunt’s Conservative Party, Labour Party, Reuters, Office, National Statistics, Local Government Association, House, National Health Service, Capital Economics, Locations: Ukraine, Birmingham, England
UK posts record budget surplus in January
  + stars: | 2024-02-21 | by ( Elliot Smith | ) www.cnbc.com   time to read: +2 min
Jeremy Hunt, UK chancellor of the exchequer, holding the despatch box as he stands with treasury colleagues outside 11 Downing Street in London, UK.. Bloomberg | Bloomberg | Getty ImagesLONDON — The U.K. logged a record £16.7 billion ($21.1 billion) net budget surplus in January, according to official figures released on Wednesday. The Office for National Statistics noted that the country's public finances usually run a surplus in January, unlike during other months, as receipts from self-assessed annual income tax payments come in. Combined self-assessed income and capital gains tax receipts totaled £33 billion in January, the ONS said, down £1.8 billion from the same period of last year. Total government tax receipts came in at a record £90.8 billion, up £2.9 billion compared to January 2023. The figures on Wednesday mark the final set of public finances data before Finance Minister Jeremy Hunt delivers his Spring Budget, which outlines the government's fiscal policy for the year, on March 6.
Persons: Jeremy Hunt, Laura Trott, Hunt Organizations: Bloomberg, Getty, National Statistics, Finance, Labour Party Locations: London, Covid, Ukraine
LONDON — European stocks are set to open higher on Friday, coming off the back of two positive sessions that have taken it back toward its recent record highs. U.K. retail sales came in stronger than expected, in a much-needed glimmer of light for the economy which data Thursday showed has entered a technical recession. Sales rose by 3.4% month on month, according to the Office for National Statistics, higher than the 1.5% growth forecast in a Reuters poll of economists. The earnings flow slowed Friday, though bank NatWest posted a 20% increase in full-year pre-tax profit, ahead of expectations. In the U.S., stock futures were mixed after the S&P 500 closed at a record high.
Organizations: Office, National Statistics, NatWest, Nikkei Locations: Asia, Pacific, U.S
(Photo by Alberto Pezzali/NurPhoto via Getty Images)LONDON — Stronger-than-expected January retail sales provided a glimmer of light for the struggling British economy on Friday — and suggest that the country's recession will be short-lived, according to some economists. Sales rebounded by 3.4% from December, according to the Office for National Statistics, the strongest monthly gain since April 2021. The latest figures follow the news of Thursday that the British economy entered a technical recession in the final quarter of 2023. British retail sales meanwhile remain 1.3% below their pre-pandemic level from February 2020, according to the ONS. Kris Hamer, director of insight at the British Retail Consortium, said two months of higher sales volumes over the last three months were "promising" after 19 months of decline.
Persons: Alberto Pezzali, Joe Maher, Maher, , Kris Hamer, Hamer, Kallum Pickering, Pickering Organizations: Charing Cross, Getty, Office, National Statistics, Reuters, Gross, Capital Economics, British Retail Consortium Locations: Charing, London, England,
LONDON — The U.K. economy slipped into a technical recession in the final quarter of last year, initial figures showed Thursday. Though there is no official definition of a recession, two straight quarters of negative growth is widely considered a technical recession. Across the whole of 2023, the British GDP is estimated to have increased by just 0.1%, compared to 2022. "These factors affected the performance of the services and construction sectors, which are the main drivers of the U.K. "Over the coming months, we expect inflation to fall, potentially easing the pressure on U.K. households, and supporting the recovery of the consumer-driven economy," Brookes added.
Persons: Jeremy Hunt, Marcus Brookes, Brookes, Neil Birrell Organizations: National Statistics, Reuters, Finance, Bank of England, Bank of England's, Quilter Investors, Premier Miton Investors Locations: British
The quarterly decline followed a 0.1% fall in the previous three-month period and highlights how the economy has been hobbled by high interest rates that have been raised to reduce inflation. A recession is officially defined as two straight quarters of economic decline. Being in recession is hardly the ideal backdrop for Prime Minister Rishi Sunak as he mulls when to call the election. Higher interest rates help cool the economy by making it more expensive to borrow, thereby bearing down on spending. Though interest rates appear to have peaked, the central bank has expressed caution about cutting interest rates too soon as lower borrowing rates may bolster spending and put renewed upward pressure on prices.
Persons: Rishi Sunak, Jeremy Hunt, , Hunt, Rachel Reeves, James Smith Organizations: Conservative Party, National Statistics, Labour Party . Treasury, Treasury, Labour, Conservatives, Bank of England Locations: Britain
UK inflation holds steady at 4%, lower than expected
  + stars: | 2024-02-14 | by ( Elliot Smith | ) www.cnbc.com   time to read: +3 min
Karl Hendon | Moment | Getty ImagesLONDON — U.K. inflation held steady at 4% year-on-year in January on the back of easing prices for furniture and household goods, food and non-alcoholic beverages. Economists polled by Reuters had produced a consensus forecast of 4.2% year-on-year for January and -0.3% for the month. The CPI goods annual rate slowed from 1.9% to 1.8%, but price pressures in the services industry remained hot, with the CPI services annual rate rising from 6.4% to 6.5%. The U.K. has lagged its peers in bringing down inflation, but the headline CPI has been on a general downward trajectory since the October 2022 peak of 11.1% year-on-year. The labor market and wage growth have meanwhile eased but will remain uncomfortably robust for a central bank aiming to drag inflation back to its 2% target.
Persons: Karl Hendon, Jeremy Hunt, Marion Amiot Organizations: London, Euromonitor International, Karl, Reuters, National Statistics, Bank of England, Finance
MEXICO CITY (AP) — Mexico's economy barely eked out a 0.1% increase in the fourth quarter, bringing estimated growth for 2023 to 3.1%, according to preliminary figures published Tuesday by Mexico’s National Statistics Institute. The institute said that services advanced 0.1% in the fourth quarter, agricultural output declined by the same amount and manufacturing remained unchanged. Inflation declined to 4.66% by the end of 2023, but domestic interest rates remained high at 11.5%. High rates at home and abroad increased the cost of servicing Mexico’s debt, the Treasury Department acknowledged. Mexico’s peso remained strong Tuesday at about 17.20 to $1 and the Mexican stock exchange’s main index was trading slightly higher.
Organizations: MEXICO CITY, Mexico’s National Statistics Institute, Treasury Department, Associated Press Locations: MEXICO
Read previewRussian state RIA news agency reported on Sunday the country would retaliate against the West in equal measure if it confiscates Moscow's frozen assets to help Ukraine. This story is available exclusively to Business Insider subscribers. Kremlin spokesperson Dmitry Peskov told reporters on December 29 that Russia has a list of foreign assets that it would seize in retaliation if the West were to move on Russia's frozen assets. It has called the notion of seizing Russian assets "outright theft." Meanwhile, there are international concerns about the legality of seizing the frozen Russian assets.
Persons: , Moscow, Dmitry Peskov Organizations: Service, West, Business, European Union, RIA, Kremlin Locations: Ukraine, Russian, Australia, Switzerland, Russia
Grim retail sales suggest possible recession for Britain
  + stars: | 2024-01-19 | by ( Jenni Reid | ) www.cnbc.com   time to read: +2 min
Shoppers walk past shops on Regent Street on the final weekday before Christmas in London on December 22, 2023. Britain's economy unexpectedly shrank in the third quarter and flatlined in the previous three months, official data showed Friday, raising fears of a recession before an election due next year. The Office for National Statistics said sales volumes fell by 3.2% during the key trading month, after a 1.4% rise in November. Volumes were 0.9% lower in the three months to December 2023, compared with the previous quarter. Trade body British Retail Consortium said that the figures "capped a difficult year for retailers" and showed that Black Friday sales ate into Christmas spending.
Persons: HENRY NICHOLLS, Alex Kerr, Kerr Organizations: Getty Images, National Statistics, Reuters, ONS, Capital Economics, Trade, British Retail Consortium Locations: London, AFP
The World Economic Forum in Davos, Switzerland, comes to a close after drawing a raft of business leaders, politicians, central bankers and campaigners. U.K. retail sales disappointed Friday, coming down by 3.2% in December, significantly more than expected. It was the largest monthly fall since January 2021, when pandemic measures restricted sales, the Office for National Statistics said. The technology sector drove a solid rally Thursday, after Bank of America analysts upgraded their Apple rating to "buy." Asia-Pacific stocks were also higher, with TSMC surging and Japanese inflation cooling to its lowest level since June 2022.
Persons: Read Organizations: Economic, European Central Bank, National Statistics, U.S, Congress, Bank of America Locations: Davos, Switzerland, Asia, Pacific
UK inflation posts first rise in almost a year
  + stars: | 2024-01-17 | by ( Hanna Ziady | ) edition.cnn.com   time to read: +2 min
London CNN —UK inflation accelerated in December for the first time since February last year, official data showed Wednesday. Core inflation, which strips out volatile food and energy prices, remained stuck at 5.1%, while services inflation increased from 6.3% to 6.4%. The UK data mirrors the trend in the United States and Europe of slight upticks in headline inflation. Energy prices could also rise if the conflict in the Middle East escalates further. Still, several leading UK economists shrugged off the latest increase in inflation, noting that inflation could return to the Bank of England’s 2% target by the spring, helped by recent falls in energy prices.
Persons: Grant Fitzner, shrugged, , Roger Barker, Yael Selfin Organizations: London CNN —, National Statistics, Reuters, US Federal Reserve, European Central Bank, Bank of England’s, Institute of, KPMG, Bank of England Locations: United States, Europe, Red
Andresr | E+ | Getty ImagesLONDON — U.K. inflation unexpectedly nudged upwards to 4% year-on-year in December, fueled by a rise in alcohol and tobacco prices. Economists polled by Reuters had expected a modest decline in the annual headline CPI to 3.8%, after November's sharper-than-expected fall to 3.9%. The closely watched core CPI figure — which excludes volatile food, energy, alcohol and tobacco prices — came in at an annual 5.1%, above a 4.9% Reuters forecast and unchanged from November. "This unexpected rise in inflation is a timely reminder that the struggle against soaring inflation is not yet over, particularly given stubbornly high core and services inflation," said Suren Thiru, economics director at ICAEW. "While inflation may rise again in January, following the increase in Ofgem's energy price cap, it should fall at a decent pace thereafter, aided by the expected drop in energy bills from April and lower food inflation."
Persons: Jeremy Hunt Organizations: Reuters, National Statistics, British, Bank of England Locations: U.S, France, Germany
LISBON (Reuters) - Almost 140,000 visitors from the United States brought the number of foreign tourists in Portugal to a record high last November, the National Statistics Institute (INE) said on Monday. Overall, 1.1 million foreigners travelled to Portugal in November, a record number for that month. Spaniards and Britons came second and third, with 131,000 and 124,000 travellers respectively, INE said in its monthly report. The number of U.S. tourists has grown significantly in recent years as they increasingly find the southern European country cheap, sunny and safe. Tourism, a key driver of Portugal's economy, accounted for almost 15% of gross domestic product before the pandemic.
Persons: Patrícia Vicente Rua, Inti Landauro, Alex Richardson Organizations: National Statistics Institute, Britons Locations: LISBON, United States, Portugal, Tourism
The biggest risks US businesses face in 2024
  + stars: | 2024-01-14 | by ( Bryan Mena | ) edition.cnn.com   time to read: +11 min
But, while businesses have plenty to be grateful for and much to be optimistic about, the coast isn’t clear. Last week, surveys from the National Federation of Independent Business (NFIB) and The Conference Board detailed the biggest risks that businesses are currently worried about. Here are some of the biggest risks for American businesses in 2024. Those financial stresses can reduce the willingness of banks to lend to others businesses and also to consumers,” she said. Bank earnings look really bad this quarter.
Persons: there’s, , John Maynard Keynes, , ” Dana Peterson, Bill Dunkelberg, ” Peterson, ” Suzanne Clark, We’re, Mike Johnson, Chuck Schumer, Fitch, Clark, JPMorgan Chase, Nicole Goodkind, Krystal Hur, FactSet, Martin Luther King Jr, Morgan Stanley, Goldman Sachs Organizations: CNN Business, Bell, DC CNN, Federal, National Federation of Independent Business, Board, US, of Commerce, of American, Conference Board, Conference, CNN, Fed, Corporate, US Chamber of Commerce, chamber’s State of American, AAA, Moody’s Investors Service, US Chamber, Commerce’s, Google, Citigroup, Bank, JPMorgan, FactSet, Revenue, Profit, Federal Deposit Insurance Corporation, Valley Bank, Signature Bank, Bank of America, FDIC, Citi, China’s National Bureau of Statistics, Alcoa, National Statistics, US Commerce Department, US Labor Department, Federal Reserve, University of Michigan, National Association of Realtors Locations: Washington, Wells, Corporate America, chamber’s State, BlackRock, Amazon, Argentina, Japan
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