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☆ The Bank of England has 'some room' to cuts rates but it's unlikely, economist says
▼ + stars: | 2024-09-19 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Bank of England has 'some room' to cuts rates but it's unlikely, economist saysYael Selfin, chief economist at KPMG UK, discusses the country's inflation data and what it could mean for the Bank of England's decision.

Persons: Yael Selfin Organizations: of England, KPMG UK, Bank of

☆ UK borrowing figures give Hunt some room for tax cuts
▼ + stars: | 2023-11-21 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

Government borrowing between April and October totalled 98.3 billion pounds ($122.49 billion), the Office for National Statistics (ONS) said on Tuesday. The data meant borrowing was running about 22 billion pounds higher than in the same period last year but almost 17 billion pounds less than the Office for Budget Responsibility (OBR) forecast in March, giving Hunt some fiscal room for manoeuvre. The ONS said that in October alone, public sector net borrowing, excluding state-owned banks, was 14.9 billion pounds last month. A Reuters poll of economists had pointed to public sector net borrowing, excluding state-owned banks, of 12 billion pounds in the month. The figure was also higher than the OBR's forecast for borrowing of 13.7 billion pounds in the month.

Persons: Jeremy Hunt, Laura Kuenssberg, Isabel Infantes, Hunt, Rishi Sunak, Sunak, Liz, Michal Stelmach, Stelmach, William Schomberg, Kate Holton, Jason Neely Organizations: BBC Broadcasting House, REUTERS, National Statistics, KPMG, Labour Party, ONS, Thomson Locations: London, Britain

A day after Britain's fast pace of price growth unexpectedly slowed, the BoE's Monetary Policy Committee voted by the narrowest margin of 5-4 to keep Bank Rate at 5.25%. But rate futures suggested they still saw a 50% chance of Bank Rate rising to 5.5% by the end of this year. Britain's economy, hit hard by Brexit, the COVID-19 pandemic and the surge in gas prices triggered by Russia's invasion of Ukraine, has been struggling with the highest inflation rate in the Group of Seven. But growth remains fragile, heightening the risk that the BoE's 14 back-to-back rate hikes will push the economy into a recession. Last week, the European Central Bank raised rates but suggested its move might be the last for now.

Persons: Andrew Bailey, Jon Cunliffe, Megan Greene, Jonathan Haskel, Catherine Mann, BoE, Reuters Graphics Sterling, Bailey, Rishi Sunak, Peter Nicholls, Frances Haque, Reuters Graphics Bailey, Yael Selfin, Hugh Gimber, William Schomberg, Catherine Evans Organizations: Bank of England, Reuters Graphics, U.S ., MPC, REUTERS, Santander UK, IF, U.S . Federal Reserve, European Central Bank, KPMG, Investors, Bank of, Morgan Asset Management, Thomson Locations: Ukraine, London, Britain

Investors put a nearly 50-50 chance on the BoE keeping rates on hold on Thursday after 14 back-to-back increases stretching back to December 2021. Investors had been overwhelmingly expecting the BoE to raise interest rates for the 15th time in a row on Thursday, taking Bank Rate to 5.5% from 5.25%. "The inflation figures may not sway the Bank of England away from raising interest rates tomorrow," Yael Selfin, chief economist at KPMG UK, said. Britain's inflation rate remains high - topped only by Austria and Iceland among Western European countries in August. But core inflation - which strips out volatile food and energy prices - fell by more than the headline rate to 6.2% from 6.9% in July.

Persons: Hunt, BoE, Yael Selfin, Price, Rishi Sunak, Jeremy Hunt, William James, Hugh Lawson Organizations: Reuters, Bank of England, Sterling, U.S, Investors, National Statistics, KPMG, Labour Party, Thomson Locations: July's, British, Austria, Iceland, Western, Britain

☆ UK hiring falls at fastest pace in over three years, wage growth slows
▼ + stars: | 2023-08-06 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

Workers travel through London Bridge rail and underground station during the morning rush hour in London, Britain, September 8, 2021. A gauge of permanent staff hiring by the Recruitment and Employment Confederation and accountants KPMG fell to 42.4, the lowest since the 34.3 in June 2020 when the country was in lockdown due to the COVID-19 pandemic. While starting pay for new permanent staff rose sharply by pre-pandemic standards, the rate of wage growth was the lowest since April 2021, REC said. Official data showed unemployment rose to 4% in the three months to May, a 16-month high, although annual wage growth remained at a record high of 7.3% in cash terms. REC said the availability of both temporary and permanent workers to fill jobs hit the highest since December 2020.

Persons: Toby Melville, Neil Carberry, Claire Warnes, Suban Abdulla, David Milliken Organizations: REUTERS, KPMG, REC, Bank of England, BDO, Thomson Locations: London, Britain

☆ Paris company listings raise 92% less in 2023, research says, but London holds up
▼ + stars: | 2023-07-26 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

LONDON — Funds raised by companies debuting on the Paris stock exchange fell by 92% in the first half of the year compared to the same period last year, according to new research, underperforming other exchanges in the region. The report shows that funds raised on the Euronext Paris declined to 32.8 million euros from 402.6 million euros over the first six months of the year. Companies listed on the London Stock Exchange raised £586.2 million ($751.7 million) through initial public offerings over the first six months of the year, flat on the same period in 2022. However, there were still signs of a more subdued investment environment, with funds raised through "further issues" — additional share offerings to raise more cash — down 36% to £3.65 billion. The number of companies listing across the main and smaller alternative investment (AIM) markets in London fell to 17 from 29.

Persons: Rob Crowley Organizations: Research, KPMG UK, CNBC, Euronext, London Stock Exchange, Nasdaq Nordic, German Deutsche, IONOS, LSE, UK Capital, KPMG Locations: Paris, Europe, Euronext Paris, London, Euronext Amsterdam, Milan, German

☆ UK jobs market cools again, pay growth weakest since April 2021: REC
▼ + stars: | 2023-07-09 | by ( ) www.reuters.com time to read: +2 min

The Recruitment and Employment Confederation (REC) and accountants KPMG said increases in starting salaries for permanent and temporary staff were the weakest since April 2021. The BoE, which has raised interest rates 13 times since late 2021 in an attempt to tame the highest inflation rate among the world's big rich economies, has said it expects pay growth to weaken, easing price pressures. The monthly REC survey showed the availability of staff rose for the fourth month in a row to 57.6 from 55.6 in May, the steepest month-on-month increase since November 2009 excluding the coronavirus pandemic period. REC said uncertainty over the economic outlook weighed on hiring decisions in June. Vacancies ticked up further in June although the pace of growth was the weakest since records started in March 2021.

Persons: BoE, Neil Carberry, REC's, Claire Warnes, Suban Abdulla, William Schomberg Organizations: Bank of England's, Confederation, KPMG, REC, Thomson

☆ PwC and KPMG fined over Eddie Stobart Logistics audit
▼ + stars: | 2023-06-29 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, June 29 (Reuters) - Britain's accounting watchdog said on Thursday it had fined PwC and KPMG, two of the world's top four auditors, for "serious" failings in their auditing of Eddie Stobart Logistics (ESL) company in 2017 and 2018. PwC was fined 1.9 million pounds ($2.4 million), reduced from 3.5 million pounds due to exceptional cooperation and admissions, the Financial Reporting Council (FRC) said in a statement. PwC admitted failings related to property transactions entered into by ESL, audit procedures, and property lease accruals, the watchdog said. The FRC also fined PwC audit partner Philip Storer 51,187 pounds. The FRC said it had fined KPMG 877,500 pounds, reduced from 1.35 million pounds due to admissions.

Persons: PwC, Eddie Stobart, Philip Storer, Cath Burnet, Burnet, Nicola Quayle, Huw Jones, John Stonestreet, Mark Potter Organizations: KPMG, Eddie Stobart Logistics, Financial, Council, ESL, FRC, Thomson

Inflation, which hit a 41-year high of 11.1% in October, continued to eat into the spending power of workers whose pay is rising by less. Britain's headline inflation rate is now the highest in western Europe and compares with an average of 6.9% in the euro zone and 5.0% in the United States. Austria recorded a higher inflation rate than Britain in February. Reuters GraphicsPOLITICAL PRESSUREHigh inflation is a problem for Britain's government as well as the BoE, which forecast in February that inflation would be below 4% by the end of the year. Producer price inflation - which measures changes in prices charged and paid by manufacturers and often leads changes in CPI - tumbled in March due to lower oil prices.

☆ KPMG fined 875,000 pounds for failures in Luceco audit
▼ + stars: | 2023-04-13 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, April 13 (Reuters) - KPMG has been fined 875,000 pounds ($1.09 million) for its audit of lighting manufacturer Luceco (LUCEL.L) for its financial year to Dec. 31, 2016, Britain's accounting watchdog said on Thursday. During 2016 Luceco was the parent of companies that produced and distributed lighting products and wiring accessories, with subsidiaries in China and other countries. "The breaches included failures in the design and performance of audit procedures, failures to adequately review and critically assess the audit evidence obtained, failure to document the audit work and failures by the respondents to apply professional scepticism," the Financial Reporting Council said in a statement. Smith, who no longer works at KPMG, was fined 50,000 pounds. Cath Burnet, head of audit at KPMG UK, said the accounting firm is committed to dealing with and learning from its historical cases and regretted that aspects of its 2016 audit of Luceco fell short of required standards.

☆ 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."

☆ 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.

[1/2] People walk along the South Bank with the Houses of Parliament in the distance, in London, Britain, January 17, 2023. Some hires need vetting by the Financial Conduct Authority (FCA) and the Bank of England (BoE). Britain introduced the accountability rules in 2016 in response to public anger that so few individuals were punished over taxpayers having to bail out banks in the 2007-2008 financial crisis. Regulators sought to reassure that the rules would not be used to put "heads on sticks" and discourage people from taking on senior roles. Reporting by Iain Withers and Huw Jones, editing by Sinead Cruise and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.

But only one policymaker, Catherine Mann, wanted to match November's bigger 0.75 percentage point increase - the BoE's largest in more than 30 years - and two MPC members voted to keep rates on hold. Sterling weakened against the U.S. dollar after the BoE's decision, falling to around $1.23, and it also declined against the euro. "While the 50-basis-point increase in the Bank rate was as expected, the extent of the divisions across the committee is an eye-opener," Philip Shaw, an economist with Investec, said. On Wednesday, the U.S. Federal Reserve also slowed the pace of its rate hikes while pointing to more tightening in 2023. That 0.4 percentage point fall in the annual rate was the largest since July 2021.

☆ U.S. watchdog levies $7.7 mln in fines against KPMG entities
▼ + stars: | 2022-12-07 | by ( Chris Prentice | ) www.reuters.com time to read: +1 min

Dec 6 (Reuters) - A U.S. agency tasked with overseeing the audits of public companies on Tuesday said it imposed $7.7 million in fines and sanctioned three firms across KPMG's global network for violations of professional auditing standards, quality control standards and other rules. The companies are all member firms of KPMG, known as one of the "Big Four" accounting firms, which also include Deloitte & Touche LLP, Ernst & Young LLP and PricewaterhouseCoopers LLP. Larry Bradley, global head of audit at KPMG, acknowledged the PCAOB's findings and said the firm "remains committed globally to the highest standards of quality and integrity." The PCAOB also barred or suspended four KPMG auditors from participating in public company audits. Reporting by Chris Prentice; editing by Jonathan Oatis, Aurora Ellis and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ ‘Difficult decisions’: Britain announces higher taxes and spending cuts
▼ + stars: | 2022-11-17 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

London CNN Business —The United Kingdom has already entered a recession and is battling decades-high inflation, eroding standards of living for millions of people across the country. Britain’s painful planThe United Kingdom is in a recession that will last just over a year, the country’s budget watchdog said in a new forecast released Thursday. The United Kingdom is also increasing its windfall tax on oil and gas companies, while slapping a new levy on electricity generators. “We do have to take difficult decisions on public finances, so we’re going to grow public spending, but we are going to grow it more slowly than the growth in the economy,” Hunt said. The Bank of England has said the United Kingdom could be in a recession for two years.

"The ongoing squeeze on household finances continues to weigh on growth, and likely to have caused the UK economy to enter a technical recession from the third quarter of this year," Yael Selfin, chief economist at KPMG UK, said. Manufacturing fell by 1.6% from July and more maintenance than unusual in the North Sea hit the mining and quarrying sector which includes oil and gas. "Many other consumer-facing services struggled, with retail, hairdressers and hotels all faring relatively poorly," ONS Chief Economist Grant Fitzner said. GDP in September is likely to be weakened by a one-off public holiday to mark the funeral of Queen Elizabeth. The International Monetary Fund said on Tuesday it expected British GDP to grow in 2023 but only by 0.3%.

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