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☆ Brentford deepen Chelsea's slump with 2-0 win at Stamford Bridge
▼ + stars: | 2023-04-26 | by ( William Schomberg | ) www.reuters.com time to read: +2 min

The loss left toothless Chelsea 11th in the Premier League table, stumbling towards possibly their worst campaign since the 1993/94 season - when they finished 14th under Glenn Hoddle - despite their new U.S. owners' huge outlay on players. The three points pushed Brentford up a spot to ninth in the league, eight points ahead of their big-spending west London neighbours for whom this season cannot finish quickly enough. Media reports said Chelsea were close to hiring former Tottenham Hotspur manager Mauricio Pochettino as coach from next season. It doesn’t come in football because the Premier League moves so fast, it’s competitive," the former midfielder who is Chelsea's all-time top scorer, said. Brentford coach Thomas Frank was able to celebrate surpassing his side's points tally for all of last season - their first in the Premier League - with Wednesday's win.

The PMI was driven by the services sector as consumer spending on travel, leisure and entertainment showed strength while manufacturing remained weak. S&P Global's input price index - a good guide to future inflation pressures - showed the slowest growth in costs for firms since March 2021, although overall cost pressures remained high by historical standards. There were also signs of recovery in Friday's consumer confidence survey by polling firm GfK which rose to its highest since February last year, albeit to weak levels. There was a reminder of the problems facing many consumers in official retail sales data also published on Friday. "A strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021," he said.

☆ Rainy March dampens shopper spending in Britain
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

Economists polled by Reuters had forecast that sales volumes would fall by a monthly 0.5% after rising in January and February. Darren Morgan, director of economics at the Office for National Statistics, said the broader trend for retail sales was less subdued than the figures for March alone suggested. Retail sales volumes in March were 3.1% lower than a year earlier. "That said, even though the worst of the declines in retail sales are in the past, higher interest rates will restrain spending this year," he said. The BoE is expected to raise interest rates for the 12th consecutive meeting in May, taking Bank Rate to 4.5% from its current level of 4.25%.

☆ Analysis: Why is UK inflation so high?
▼ + stars: | 2023-04-19 | by ( Andy Bruce | ) www.reuters.com time to read: +4 min

Annual consumer price inflation (CPI) in Britain fell to 10.1% last month but defied forecasts for a bigger drop from February's 10.4%, according to data published on Wednesday. "Inflation in the UK has risen further and stayed higher than elsewhere as the UK has experienced the worst of both worlds: a big energy shock like the euro zone and labour shortages - even worse than the U.S.," said Ruth Gregory, deputy chief UK economist at consultancy Capital Economics. British consumer energy prices were 79% higher in March than their level two years earlier, the biggest increase in western Europe. Britain's high rate of energy inflation reflects its heavy reliance on gas for power generation and home heating as well as the poor energy efficiency of its housing stock. But domestically generated price pressures are likely to slow the pace of decline in headline inflation.

☆ Tech protectionism would risk new Dark Age, says UK's Hunt
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: +1 min

"The strategic choice the world faces is now do we all say 'we're going to do this on our own,' and go back to protectionism, which would bring global growth back into the Dark Ages?," Hunt told an event hosted by Politico. Hunt said Britain would remain competitive on innovation. "In the end, the thing that makes you competitive is the quality of your ideas not the amount of your subsidies," he said. Hunt also said it was not possible for countries to opt out of the race to develop artificial intelligence. Reporting by William Schomberg, Editing by Kylie MacLellanOur Standards: The Thomson Reuters Trust Principles.

☆ UK economy shows no growth in February as strikes weigh
▼ + stars: | 2023-04-13 | by ( ) www.reuters.com time to read: +2 min

Economic output was flat in month-on-month terms in February, the Office for National Statistics (ONS) said on Thursday. A Reuters poll of economists had pointed to growth of 0.1%. The ONS revised up January's monthly growth rate in the overall economy to 0.4% from a previous estimate of 0.3%. "A combination of upward revisions in GDP data and an improvement in global economic conditions could help the UK economy avoid a recession this year," Yael Selfin, chief economist at KPMG UK, said. "While this will provide relief for policymakers, the outlook for growth in the medium-term remains relatively weak by historical standards."

Reuters GraphicsNOTHING 'BROKEN' YETInternational economic officials gathering in Washington this week for the IMF and World Bank spring meetings can take some comfort that pandemic-era risks are continuing to diminish. An aggressive year of central bank rate hikes hasn't yet "broken" any of the economies involved, with the U.S. unemployment rate at 3.5%, near its lowest level since the late 1960s. Still, that terminal rate remains unclear, and the end of synchronized tightening by the Fed, BoE and European Central Bank doesn't mean tight monetary policy is going away. Wages, services and food are driving price growth to the point that the ECB's attention has shifted almost entirely to underlying inflation on fears that rapid price growth is at risk of getting stuck above target. The U.S. central bank is expected to increase its benchmark overnight interest rate by another quarter of a percentage point next month, and signal whether more hikes may be warranted.

☆ UK recruiters slow pace of pay growth in March, REC survey shows
▼ + stars: | 2023-04-12 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

LONDON, April 12 (Reuters) - Britain's labour market showed signs of a slowing in the sharp pace of pay growth in March and a shortage of candidates eased for the first time in two years, according to a survey of recruiters published on Wednesday. The Recruitment and Employment Confederation/KPMG said increases in starting salaries for permanent staff were the second-weakest in nearly two years, but remained high in historical terms. Billings for temporary workers, which often increase when employers are cautious about the outlook, rose at the fastest pace in six months. "The continuing fast rate of pay growth is likely reflective of the impact of inflation on wage offers, as well as low labour supply," Carberry said. Vacancies ticked up further in March although the pace of growth eased slightly from a four-month high in February.

☆ Real Madrid beat 10-man Chelsea 2-0 as Benzema strikes again
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

[1/5] Soccer Football - Champions League - Quarter Finals - First Leg - Real Madrid v Chelsea - Santiago Bernabeu, Madrid, Spain - April 12, 2023 Real Madrid's Karim Benzema celebrates scoring their first goal with teammates REUTERS/Albert GeaMADRID, April 12 (Reuters) - European champions Real Madrid beat 10-man Chelsea 2-0 in their Champions League quarter-final, first leg courtesy of a tap-in by Karim Benzema and a powerful strike by substitute Marco Asensio in the Spanish capital on Wednesday. Benzema, the scourge of Chelsea at the same stage of the competition last season, converted from point blank range in the 21st minute when Kepa Arrizabalaga saved from Vinicius Junior but could only touch the ball in the direction of the Frenchman. Chelsea went close to scoring in the first half through Joao Felix and Raheem Sterling but they were thwarted by Madrid goalkeeper Thibaut Courtois playing against his former club. The win at the Santiago Bernabeu stadium puts the 14-time European champions in the driver's seat ahead of the second leg at Chelsea's Stamford Bridge on April 18. Writing by William Schomberg in London Editing by Toby DavisOur Standards: The Thomson Reuters Trust Principles.

☆ BoE's Bailey says bank reforms worked but questions about liquidity buffers
▼ + stars: | 2023-04-12 | by ( Huw Jones | ) www.reuters.com time to read: +4 min

"Today I do not believe we face a systemic banking crisis. Bailey, however, echoed calls from his predecessor Mark Carney by saying there might be questions over the size of liquidity buffers required of banks in order to tide them over short-term shocks. This must beg the question of what are appropriate and desired liquidity buffers that create the time needed to take action to solve the problem." Data from the European Central Bank on Wednesday showed a slight weakening in liquidity buffers at banks it regulates, though they are still well above minimum requirements. Banks' holdings of liquidity have more than doubled since the global financial crisis, helping to contain fallout from the recent banking turmoil, de Cos said.

☆ UK economy set for smaller hit in 2023 than previously feared - IMF
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +2 min

British gross domestic product will contract by 0.3% in 2023, the IMF said in its latest set of global forecasts, a smaller shrinkage than the 0.6% contraction the Fund predicted in January. Britain is no longer the only Group of Seven economy set for a fall in GDP this year as Germany is now expected to shrink by 0.1%, the IMF forecasts showed. But its contraction this year is set to be the biggest among the Group of 20 economies, according to the IMF's forecasts. After narrowly avoiding recession in 2022, Britain's economy has shown some signs of resilience in early 2023. The IMF said it expected Britain's economy would grow by 1.0% in 2024, weaker than most other G7 economies with the exception of Italy while matching Japan's expected growth rate.

☆ UK house sales at pre-COVID levels after 'mini-budget' shock - Rightmove
▼ + stars: | 2023-04-11 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

Property website Rightmove (RMV.L) said the number of sales agreed between sellers and buyers was just 1% lower last month than in March 2019 as borrowing costs edged down from their leap after the September 'mini-budget'. However, while the total number of agreed sales had improved from being 21% below 2019 levels as recently as January, they remained down 18% when compared with March 2022. Real estate agents noted a "significant upswing" in buyer demand for apartments of all sizes, with agreed sales rising 10% from 2019, up from a fall of 11% at the start of 2023. London saw the most pronounced recovery in the broader market, with overall agreed sales increasing 11% compared to March 2019, and agreed sales of apartments 23% higher. Rightmove said a third of properties were reduced from their original asking price, up from 19% last year although in line with pre-pandemic levels.

☆ UK's scandal-hit CBI fires director-general after complaints
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +2 min

"The allegations that have been made over recent weeks about the CBI have been devastating," it said in a statement. Danker stepped aside in March while the CBI conducted a review into his behaviour. The CBI said three employees were suspended pending further investigation into a number of ongoing allegations. "The CBI is liaising with the police and has made clear its intention to cooperate fully with any police investigations," it said. After he was suspended, Danker expressed regret over his behaviour.

☆ UK house prices rise for 3rd month in a row, Halifax says
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

LONDON, April 6 (Reuters) - British house prices rose for a third month in a row in March, representing a further calming of the market after the turmoil sparked by former Prime Minister Liz Truss's "mini-budget" last September, data from mortgage lender Halifax showed. House prices rose by 0.8% in month-on-month terms, Halifax said on Thursday, the second-strongest gain since June last year after February's 1.2% increase. A Reuters poll of economists had pointed to a 0.3% drop on the month. House prices were 1.6% higher than a year ago. But other indicators, such as the BoE's mortgage approvals data and a measure of asking prices compiled by property company Rightmove, have suggested the market has become more stable in recent months.

☆ UK service firms report second month of growth as prospects improve -PMI
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +2 min

Adding to signs of recovery in the economy, Wednesday's final reading of the S&P Global/CIPS UK Services Purchasing Managers' Index (PMI) of 52.9 was below February's 53.5 but above the 50 mark denoting growth for a second month in a row. It was also a touch higher than a preliminary March reading of 52.8 and contrasted with a more downbeat picture for the smaller manufacturing sector last month. The PMI showed business expectations improved for a fifth straight month and optimism about business prospects was the highest since March last year. S&P Global's input price index showed growth in costs was the slowest since May 2021. Although still high by historical standards, that represented welcome news for the BoE which is worried about the persistence of the recent surge in inflation.

☆ BoE might need to cut rates sooner than thought, Tenreyro says
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +1 min

LONDON, April 4 (Reuters) - The Bank of England will probably need to start cutting interest rates sooner than previously thought after raising them sharply in recent months despite signs of weaker inflation pressures, monetary policymaker Silvana Tenreyro said on Tuesday. Investors currently put a 75% chance on a further quarter-point rate hike by the BoE in May and more than a 50% probability on another such increase by August. "With Bank Rate moving further into restrictive territory, I think a looser stance is needed to meet the inflation target in the medium term," she said. Tenreyro used her speech mostly to explain the BoE's bond-buying and bond-selling programmes. Reporting by David Milliken Writing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

☆ Britain's digital tax risks becoming permanent, says tax body
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +2 min

LONDON, April 5 (Reuters) - A levy imposed by Britain on the revenues of big tech companies such as Google, Facebook and Amazon in 2020 as a stopgap measure pending an international tax agreement risks becoming permanent, a group of tax experts said on Wednesday. The levy was introduced after concerns were raised about low levels of tax paid by some major tech companies, and raised 358 million pounds ($447 million) in its first year. Without an agreement on how to allocate taxation rights that all major trading partners could sign up to, there was a real risk that the tax could effectively become permanent, the CIOT said. "A revenue tax such as this is a blunt instrument that cannot accurately represent the tax on the profits generated in the UK," the CIOT's director of public policy, John Cullinane, said. The tax is forecast to raise around 3 billion pounds by 2024-25, it noted.

Despite the improvement, British economic output remained 0.6% below its level of late 2019, the only G7 economy not to have recovered from the COVID-19 pandemic. Ruth Gregory at Capital Economics said Friday's figures showed high inflation had taken a slightly smaller toll than previously thought. But the picture could darken again if recent turmoil in the global banking sector leads to lenders reining in loans. BUSINESS INVESTMENT FALLSThe data suggested businesses remained cautious. The ONS said increased foreign earnings by companies, particularly in the energy sector, helped narrow the deficit.

Economic output increased by 0.1% from the previous three months after shrinking by 0.1% in the third quarter, which was a smaller contraction than previously thought. The Office for National Statistics (ONS) had previously said the economy showed no growth in the fourth quarter. Britain's dominant services sector rose by 0.1%, boosted by a nearly 11% jump for travel agents. The ONS said changes to the way it calculates seasonal adjustments to the data were behind the big revision. The ONS said increased foreign earnings by UK companies, particularly in the energy sector, helped narrow the deficit.

☆ BAE Systems to work with Heart Aerospace on electric airplane battery
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: 1 min

LONDON, March 30 (Reuters) - Britain's BAE Systems (BAES.L) said on Thursday it would collaborate with Sweden's Heart Aerospace in developing a battery system for Heart's ES-30 regional electric airplane. The ES-30 will be powered by four electric motors, with an all-electric range of 200 kilometers, an extended reserve hybrid range of 400 kilometers with 30 passengers and an ability to fly up to 800 kilometers with 25 passengers, BAE Systems said. Heart Aerospace has a total of 230 orders and 100 options for the ES-30, along with letter of intent for an additional 108 airplanes. Reporting by Paul Sandle Editing by William Schomberg and Sarah YoungOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of England tells regulators to move fast on LDI reform after mini-budget crisis
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +3 min

LONDON, March 29 (Reuters) - The Bank of England on Wednesday told regulators to move fast to toughen rules for funds used by Britain's pension industry which nearly collapsed last year after former Prime Minister Liz's Truss's "mini-budget." But the BoE's Financial Policy Committee called on pension regulators to act "as soon as possible" to mitigate the risks posed by liability-driven investment (LDI) funds. The FPC also said there is a need to toughen resilience of money market funds, used by companies for day-to-day financing, and UK regulators will publish a consultation paper on MMF regulation later this year. The FPC stressed that "all UK banks" have been assessed on their resilience to moves in interest rate rises, including the impact on their holdings of net open bond positions. (Reporting by Huw Jones and William Schomberg)((uk.economics@reuters.com; +44 20 7542 5109))Keywords: BRITAIN BOE/Our Standards: The Thomson Reuters Trust Principles.

☆ Bank of England says it is on alert after turmoil in banking sector
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 28 (Reuters) - Top Bank of England officials said on Tuesday the central bank was on alert amid global turmoil in the banking sector but they also said Britain was not experiencing stress linked to the demise of Silicon Valley Bank and Credit Suisse. "I don't think that any, and we've said this, that any of these features cause stress in the UK banking system," BoE Governor Andrew Bailey told parliament's Treasury Committee. "This is why we have to remain incredibly vigilant," Deputy BoE Governor Dave Ramsden said. "We'll keep a close eye on bank funding costs, what the consequences of those could be for households and businesses, equally looking out for other risk factors, we have to remain incredibly vigilant." Bailey said the recent swings in the share prices of some banks showed investors were testing the sector.

☆ BoE's Bailey says rate-setters can put inflation before bank worries
▼ + stars: | 2023-03-27 | by ( William Schomberg | ) www.reuters.com time to read: +2 min

LONDON, March 27 (Reuters) - Bank of England Governor Andrew Bailey signalled on Monday that interest rate-setters would focus on fighting inflation and would not be swayed unduly by worries about the health of the global banking system. Some investors have argued that central banks should take into account the banking turmoil when setting interest rates. "With the Financial Policy Committee on the case of securing financial stability, the Monetary Policy Committee can focus on its own important job of returning inflation to target," Bailey said. As well as the BoE, the European Central Bank, U.S. Federal Reserve and Swiss National Bank have all raised interest rates this month, despite the high-profile bank failures including Silicon Valley Bank and Credit Suisse. Bailey repeated the BoE's view that further monetary tightening would be required if signs of persistent inflationary pressure became evident.

☆ Food prices push UK shop price inflation to new high: BRC
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Hannah McKayLONDON, March 28 (Reuters) - Soaring food prices pushed annual inflation in British shops to its highest in at least 18 years in March, industry data showed on Tuesday. The British Retail Consortium said overall shop price inflation rose to 8.9% from 8.4% in February, the largest increase since the British Retail Consortium's (BRC) records started in 2005. "Shop price inflation has yet to peak," said BRC Chief Executive Helen Dickinson, who cited the rising cost of sugar as a major driver of higher food prices in March. Sugar prices have been hit by falling production, rising energy prices and a pesticide ban in Britain to protect bees. The country's annual consumer price inflation - which includes services and other non-shop goods such as energy - rose unexpectedly to 10.4% in February.

☆ Inflation shock puts Bank of England on course to raise rates again
▼ + stars: | 2023-03-23 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

[1/2] A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. Most economists had believed inflation was on course to fall steadily, after hitting a 41-year high above 11% in October. But Wednesday's data - showing inflation rising to 10.4% in February rather continuing its descent - immediately turned Thursday's announcement into an almost one-way bet on a quarter percentage-point increase in Bank Rate. As recently as Tuesday, investors were split almost 50-50 on whether the BoE would leave Bank Rate unchanged for the first time since November 2021. The European Central Bank last week stuck to its plans and raised rates by 50 basis points despite the Credit Suisse turmoil.

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