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The rapid rise in gilt yields has consequences for the wider economy. To some investors, gilts now increasingly look a bargain as 6% BoE interest rates appear unrealistic. Two-year gilt yields have risen by 1.1 percentage points this year, compared with a 0.3 percentage point increase for German two-year yields and 0.2 percentage points for U.S. Treasuries . Raising interest rates to 6% would "succeed in destroying demand" in the wider economy, he said. Ten-year gilt yields now pay an interest rate nearly 2 percentage points higher than the equivalent German government bond .
Persons: BoE, Liz, Britain's, Jim Leaviss, BoE Governor Andrew Bailey, gilts, We've, Mike Riddell, Riddell, Moyeen, There's, Islam, Naomi Rovnick, David Milliken, Toby Chopra Organizations: Labour Party, Bank of England, Bank of, Italy, Reuters Graphics, Allianz Global Investors, U.S, Barclays, Thomson Locations: Bank of England, Britain, British, gilts
Stocks edge higher, dollar sags eyeing Fed pause
  + stars: | 2023-06-14 | by ( Yoruk Bahceli | ) www.reuters.com   time to read: +4 min
On an annual basis, consumer prices rose 4%, the smallest in more than two years, slowing from April's 4.9%. That has crystallised traders' views that the Fed is unlikely to hike rates later on Wednesday. S&P 500 futures and Nasdaq futures were both up 0.2%, setting Wall Street for further gains after U.S. stocks rallied to 14-month highs overnight. That supported the euro , which was up 0.1% to $1.0850, hovering just below Tuesday's three-week high of $1.08235. German two-year bond yields touched a fresh high since March ahead of Thursday's European Central Bank rates decision.
Persons: Richard McGuire, Jim Reid, Stocks, Yoruk Bahceli, Stella Qiu, Jacqueline Wong, Sharon Singleton, Chizu Organizations: Sterling, U.S . Federal, U.S, CPI, Nasdaq, Rabobank, Deutsche Bank, Bank of, Thursday's European Central Bank, Brent, International Energy Agency, Tokyo's Nikkei, Thomson Locations: London, Asia
In December 2021 the BoE was one of the first major central banks to draw a line under its ultra-loose pandemic-era monetary policy. It has now raised borrowing costs by 440 basis points across 12 consecutive meetings in modest-sized rate rises. All 64 economists polled June 12-14 said the BoE would add another 25 basis points to Bank Rate on June 22, taking it to 4.75%. A majority of economists surveyed, 52 of 64, said Bank Rate will have peaked by end-August with the median forecast putting it at 5.00%. Although starting later, both the Fed and the European Central Bank have largely been raising rates in greater magnitudes than the BoE.
Persons: BoE, Ellie Henderson, BoE Governor Andrew Bailey, Jonathan Haskel, Catherine Mann, Megan Greene, Silvana Tenreyro, Stefan Koopman, Investec's Henderson, Jonathan Cable, Aditi Verma, Anitta Sunil, Ross Finley, Catherine Evans Organizations: Bank of England, Monetary, Committee, Rabobank, U.S . Federal, Fed, European Central Bank, Reuters, Thomson Locations: Investec
London CNN —Existing and aspiring UK homeowners are bracing for a fresh wave of misery as a rise in benchmark borrowing costs threatens to push up monthly mortgage payments. The yield on the country’s two-year government bonds — which is used to set interest rates on mortgages — jumped to 4.87% on Tuesday. The figures have pointed to persistent inflationary pressures, increasing the chances of more interest rate hikes by the Bank of England and driving up gilt yields. “We’ve had to reflect that in our mortgage rates,” the spokesperson said. “[UK inflation] is a chronic problem, and it’s not something that you can deal with quickly.”
Persons: Liz Truss, Craig, Samuel Tombs, “ We’ve, Paul Dales, , Truss, Henry Nicholls, , Ed Al Organizations: London CNN, Bank of England, Royal London Asset Management, CNN, Pantheon, UK Finance, HSBC, HSBC UK, Capital Economics, Reuters, Columbia Threadneedle Investments Locations: United Kingdom, Europe, United States
London CNN —The number of people in work in the United Kingdom has climbed above its pre-pandemic level for the first time, reaching a record high. Employment hit a record 33.1 million between February and April, with increases in both the number of employees and self-employed workers, the Office for National Statistics said Tuesday. Employment in the United Kingdom has recovered more slowly than in any other major economy since the pandemic, according to the UK Institute for Employment Studies. This is the fastest rise on record, apart from the period when the figures were distorted by the pandemic, Morgan noted. Food inflation remained above 19% — near a 45-year high — hitting poor households the hardest because they spend more of their available income on food.
Persons: Darren Morgan, Morgan, Liz Truss, Jeremy Hunt, , Ashley Webb, Anna Cooban Organizations: London CNN, National Statistics, Employment, UK Institute for Employment Studies, Bank of, , Capital Economics, Bank, Ill Locations: United Kingdom, Europe, United States
Venture capital giant Andreessen Horowitz is set to open its first office outside of the US in London. The Silicon Valley giant is betting on the UK to become a leader in crypto regulation. Venture capital giant Andreessen Horowitz is set to open its first office outside of the US in London as it bets on the British government to become a leader in crypto regulation. Meanwhile, venture capital funding to crypto companies has collapsed over the past year. Andreessen general partner Chris Dixon said that crypto was still in its "early innings" and that technology takes "decades to develop," in a blog post announcing the London office.
Persons: Andreessen Horowitz, Chris Dixon, Sriram Krishnan, Binance, Rishi Sunak, Dixon, Sunak, there's Organizations: Venture, Twitter, Facebook, Securities and Exchange Commission, SEC, School from, Catalyst, Bessemer, Lightspeed Venture Partners Locations: London, Europe, School from London, Silicon, Sequoia
June 10 (Reuters) - Crispin Odey, one of Britain's best-known hedge fund managers, is leaving Odey Asset Management following allegations of sexual misconduct, the firm's executive committee said on Saturday. Here are some key facts about Odey, his London-based hedge fund, the allegations, and the fallout:WHO IS CRISPIN ODEY AND ODEY ASSET MANAGEMENT? Odey Asset Management (OAM) is known for highly leveraged bets trading global equities, debt, currencies and commodities. Besides Odey Asset Management, the group also runs Brook Asset Management and Odey Wealth, a private wealth unit. Brook Asset Management and Odey Wealth, both part of the Odey Group, are run by different portfolio managers such as James Hanbury and Peter Martin, the chief executive of Odey Asset Management.
Persons: Crispin Odey, Odey, CRISPIN ODEY, Kwasi Kwarteng, ODEY, James Hanbury, Peter Martin, Goldman Sachs, Morgan Stanley, Schroders, Carolina Mandl, Nell Mackenzie, Dhara Ranasinghe, Daniel Wallis Organizations: Odey, Management, Financial Times, WHO, Conservative Party, Odey Asset Management, Asset Management, Securities and Exchange Commission, Reuters, Financial, Authority, Inc, JPMorgan, UBS, Carolina, Thomson Locations: London, New York
That's worrying concert venues that depend on alcohol sales for their profits, Billboard reported. "Bar sales are important for every music venue, but especially for smaller ones," a talent agent told the magazine. That's because alcohol sales help keep the lights on at clubs around the country. David Slutes, who runs a venue called Club Congress in Tuscon, Arizona, said that he'd noticed alcohol sales had dropped up to 25% when booking shows for a Gen Z-focused crowd. Some venues told the magazine they're experimenting with renting out their facilities for more private events to make up for lost revenue.
Persons: Z'ers, , it's, Evan Johnson, Daydream, David Slutes, he'd, Z, Dayna Frank, Nielsen Organizations: Gallup, Billboard, Service, Daydream State, Nielsen Locations: Seattle, Tuscon , Arizona
London CNN —The UK government plans to scrap its windfall tax on oil and gas companies if energy prices fall below certain levels, abolishing a levy that has raised around £2.8 billion ($3.5 billion) since it was introduced a year ago. The tax helped subsidize the energy bills for millions of UK households and businesses after they soared following Russia’s full-scale invasion of Ukraine. Energy prices have fallen sharply over the past few months. UK natural gas was trading at £0.67 ($0.84) per therm, according to Michael Hewson, chief market analyst at stockbroker CMC Markets UK. There are a number of ways to measure oil and gas prices and the Treasury didn’t specify which prices it would use as a reference for its thresholds.
Persons: Brent, Michael Hewson, Organizations: London CNN, UK Treasury, Treasury, CMC Locations: North, Ukraine
London CNN —A High Court judge in London has denied Julian Assange permission to appeal an order to extradite him to the United States, where he faces criminal charges under the Espionage Act. A London court issued a formal extradition order to send the Australian to the US in April last year; it was rubber-stamped by the UK government two months later. In January 2021, a UK judge rejected a request from the US to extradite Assange, ruling that such a move would be “oppressive” to his mental health. Amnesty International’s European Institutions Office described the latest court decision as “disappointing.” It said allowing the extradition “would set a dangerous precedent, threatening all our rights to freedom of expression” in a Twitter post. The reaction was similar from Reporters Without Borders (RSF) which said it was “deeply concerned” by the High Court decision against Assange which brings him “dangerously close” to being extradited.
Persons: Julian Assange, Justice Swift, Assange, Vanessa Baraitser, Mr, Assange’s, Stella, Julian, , Chelsea Manning, , Rebecca Vincent, Biden, Dominique Pradalié Organizations: London CNN, CNN, WikiLeaks, High, U.S ., Twitter, London’s Metropolitan Police, Eastern, of, Army, Department, High Court, Amnesty, Office, International, European, of Journalists, British Locations: London, United States, Belmarsh, of Virginia, Guantanamo
The UK government said last August it would advance a bill in the current parliamentary session, which is expected to end this autumn, providing detailed regulations by 2025. That has not yet happened, with political turmoil forcing the government to water down ambitions for this session. Transport Minister Mark Harper in December said there would no longer be a Transport Bill this session, and did not mention a separate AV bill in an outline of the ministry's legislative agenda. Last month Junior Minister Jesse Norman said he shared AV startups' concerns. They fear a self-driving bill will be crowded out by other vote-winning priorities in the run-up to the election.
Persons: Toby Melville LONDON, Claudio Gienal, Mark Harper, Iain Stewart, Jesse Norman, We've, Kaity Fischer, Wayve, Ashley Feldman, Alexander Dennis, Jim Hutchinson, Oxbotica, Paul Newman, Nick Carey, Ben Klayman, Sharon Singleton Organizations: REUTERS, Ireland, AXA, Transport, United Arab Emirates, Microsoft, Autonomous Vehicles, Stagecoach, BP, Thomson Locations: Oxford, Britain, British, France, Germany, California, London, Bristol, Edinburgh, Fife
LONDON, June 7 (Reuters) - Britain has committed to the removal of Chinese-made surveillance equipment from sensitive government sites as part of its latest plans to address national security concerns related to China. Under Prime Minister Rishi Sunak, who has cast China as the world's greatest challenge to security and prosperity, the government told its departments last year to stop installing Chinese-linked surveillance cameras at sensitive buildings. In an announcement setting out a proposed tightening of procurement rules, the government said:"We will also commit to publish a timeline for the removal of surveillance equipment produced by companies subject to China’s National Intelligence Law from sensitive central government sites. Beijing has said it "firmly opposes" overstretching the concept of national security to suppress Chinese enterprises. Some U.S. states have banned vendors and products from several Chinese technology companies.
Persons: Rishi Sunak, Hikvision, Muvija Organizations: China’s National Intelligence, Government, Huawei, Thomson Locations: Britain, China, Beijing, U.S
[1/3] Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File PhotoWASHINGTON, June 7 (Reuters) - Britain will host a global summit on artificial intelligence safety later this year and Prime Minister Rishi Sunak and U.S. President Joe Biden will discuss the technology at their Thursday meeting, the UK government said. That includes China, where the government is seeking to initiate artificial intelligence regulations, according to billionaire Elon Musk who met officials during his recent trip to China. Sunak is on a trip to the United States and will meet Biden at the White House on Thursday. Reporting by Kanishka Singh and Andrea Shalal in Washington; editing by Deepa Babington and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.
Persons: Dado Ruvic, Rishi Sunak, Joe Biden, Biden, Sunak, Elon Musk, Kanishka Singh, Andrea Shalal, Deepa Babington, Stephen Coates Organizations: REUTERS, WASHINGTON, Palantir Technologies, Regulators, White, Thomson Locations: Britain, British, China, United States, Washington
REUTERS/Henry NichollsLONDON, June 6 (Reuters) - The British government's legal challenge to the COVID-19 public inquiry will likely be heard on June 30 or shortly afterwards, the counsel to the inquiry said on Tuesday. The government has refused to hand over internal WhatsApp messages it has described as "unambiguously irrelevant" to the inquiry, and has sought a judicial review at London's High Court against the demand. A judicial review is a legal challenge to the lawfulness of a decision by a public body, including a public inquiry. Johnson has offered to hand over his WhatsApp messages to the inquiry directly, rather than through the government, which has withheld some messages and has redacted others. Keith said that the inquiry had liaised with Johnson over the inspection of his unredacted messages.
Persons: Henry Nicholls LONDON, Hugo Keith, Keith, Boris Johnson, Rishi Sunak, Johnson, Alistair Smout, Sarah Young, William Maclean Organizations: REUTERS, British, London's, Britain, Thomson Locations: United Kingdom, London, Britain
Novo's inability to keep up with a burst in U.S. demand for Wegovy has effectively delayed the launch in Britain and elsewhere in Europe. A company spokesperson would not comment on any commitment to supply its drug for the British pilot. The British government said that only 35,000 people would have access to Wegovy under the specialist hospital services, but tens of thousands more could be eligible. Duane Mellor, a dietitian and senior lecturer at Aston University's medical school, told Reuters drugs like Wegovy were a tool, not the solution. Wegovy works by mimicking a hormone called glucagon-like peptide-1 (GLP-1) that triggers the feeling of fullness in the body after eating.
Persons: Jim Vondruska, Sunak, Eli Lilly's, Eli Lilly, Phil McEwan, Novo, Keen, Wegovy, Duane Mellor, Simon Cork, Ludwig Burger, Maggie Fick, Anusha, Helen Reid, Lincoln, Mark Potter Organizations: REUTERS, National Health, Novo, British, NHS, NICE, National Institute for Health, Care, Wegovy, Nordisk, ., Heor Ltd, Reuters, Aston, Anglia Ruskin University, Thomson Locations: Chicago , Illinois, U.S, Britain, England, Europe, United States, British, Cardiff, Denmark, Norway, Frankfurt, London, Bengaluru
Jordan Lee, 28, has 62,000 pounds in student debt and works as a radio host in Manchester, England. Jordan Lee, 28, has 62,000 pounds in student debt. In the meantime, monthly payments are required to receive eventual relief, and spiking interest rates have made that more of a burden. One couple, for example, started with $54,000 in student debt, paid $140,000 toward it, and still owe $130,000 — all thanks to surging interest rates on student loans in the US. "When it comes to university and getting a degree, it's like, there's the 50,000 pounds debt there.
Persons: Jordan Lee, he's, , Lee, who's, that's, Joe Biden's, you'll, You've Organizations: Service Locations: Manchester, England, London, United Kingdom
The inquiry recently requested that it be given access to the private messages of a number of government officials – including Johnson. That request was made to the Cabinet Office, an important government department that supports the PM and the cabinet in nearly all areas of government. On Friday, Johnson went around the Cabinet Office and published a letter in which he agreed to share his personal WhatsApp messages and handwritten notebooks directly with the inquiry. The release of phone messages could be embarrassing for Rishi Sunak and anyone serving in his government who also served under Boris Johnson. The official Cabinet Office position is that it is questioning whether an inquiry should have the legal authority to make such sweeping demands.
Persons: London CNN — Boris Johnson, Johnson, Rishi Sunak, ” Johnson, Boris Johnson, Jeff J Mitchell, Angela Rayner, Sunak, Organizations: London CNN, British, Office, Getty, CNN, Labour Party, Downing, Conservative
A South Korean COVID-19 vaccine recently authorised in Britain is administered by injection, not sprayed into the sky from aircraft, as social media posts falsely claim. Some social media users have since been saying that SKYCovion will be sprayed on people from aircraft in a possible misinterpretation of the vaccine’s name (here). However, the vaccine is not based on mRNA and is administered through intramuscular injection, according to the MHRA and SK bioscience. SKYCovion is not an mRNA vaccine but has a traditional protein-antigen design. The SKYCovion vaccine authorised in Britain is injected intramuscularly, not sprayed from the sky.
Persons: chemtrails, Read Organizations: South, SK bioscience, GlaxoSmithKline, GSK, SK Chemicals, Britain’s Medicines, Healthcare, Agency, Twitter, ” SK bioscience, Reuters Locations: Britain, South Korean
Borrowing costs, or bond yields, in the benchmark euro area issuer are down at least 20 basis points (bps) this week , . Yet this week's notable moves suggest investors are plumping with the view that easing inflation and recession risks are strong bond buy signals. Traders now expect the ECB hikes to peak at around 3.7% by September, suggesting two more hikes from 3.25% currently. COMPLICATEDInvestors cautioned that the European inflation outlook remained more complicated than in the United States, where inflation broadly is down sharply from peaks. This week's fall in borrowing costs followed sharp rises the previous two weeks on bets for more rate hikes.
Persons: Kaspar Hense, Flavio Carpenzano, It's, Cosimo Marasciulo, Marasciulo, BlueBay's Hense, Oliver Eichmann, DWS, Eichmann, Yoruk Bahceli, Harry Robertson, Dhara Ranasinghe, Susan Fenton Organizations: Bank, British, Thursday's, Traders, BlueBay Asset Management, Capital Group, ECB, U.S . Federal Reserve, General Investment Management, Bank of England, NatWest, Pictet Wealth Management, Thomson Locations: Germany, United States, Europe, Amundi, U.S, Britain, DWS
The government is reportedly in discussions with supermarkets over voluntary price caps on some items. "The government is not considering imposing price caps. Any scheme to help bring down food prices for consumers would be voluntary," a government spokesperson told CNBC by email. "We know the pressure households are under with rising costs and while inflation is coming down, food prices remain stubbornly high. That's why the prime minister and the chancellor have been meeting with the food sector to see what more can be done."
Kyiv rebuffed claims that Russian forces have captured the city in the eastern Donetsk region. LIBKOS/APYevgeny Prigozhin, the chief of the Wagner private military group, pictured in a screengrab from May 20, 2023, insisted that his men captured Bakhmut after months of fighting. A Ukrainian serviceman checks Russian positions in Bakhmut on May 11, 2023. He said regular Russian troops were incompetent cowards. And they’re being flanked to the north and south by Ukrainian troops.
CNN —Police in Georgia have removed protesters from outside a hotel where relatives of Russian Foreign Minister Sergey Lavrov are allegedly staying, according to the public broadcaster First Channel. According to First Channel, the opposition United National Movement party held a protest outside the Kvareli Lake Hotel in northeastern Georgia on Saturday to express their anger following Georgian media reports that Lavrov’s relatives were staying in the hotel. Reporters on the ground said the situation outside the hotel had grown “tense” on Saturday after protesters pelted eggs at a minibus that left the hotel carrying Russian tourists. ‘Tense’ protest scenesVideos posted on social media showed violent scenes of police officers roughly grabbing protesters gathered outside the hotel. The protests came after Georgian media reported that Lavrov’s relatives had traveled to Georgia for the wedding of the brother of Lavrov’s son-in-law, Alexandre Vinokourov.
“Russian diamonds are not forever,” European Council President Charles Michel said on the sidelines of the G7 summit in Hiroshima, Japan, on Friday. Tatyana Makeyeva/ReutersA ban on Russian diamonds could inflate prices for European consumers, especially if diamond production elsewhere doesn’t ramp up. The biggest task facing Europe is how to design an air-tight ban that prevents Russian diamonds from arriving in the bloc through circuitous routes. “There are a lot of Russian diamonds that still get sold within the American economy,” he said. “If you really want to close loopholes, you need to find a system that prevents [Russian] diamonds going to the G7 market,” Neys said.
“Quantitative tightening,” or QT, by top central banks will suck $2 trillion in liquidity out of the financial system over the next two years, according to a recent analysis by Fitch Ratings. Investors and banks calibrate their strategies to the amount of money in the financial system, he noted. Then, central banks started withdrawing liquidity from the financial system. Even worse, many banks have large holes on their balance sheets because central banks have simultaneously jacked up interest rates. While government debt levels have skyrocketed in recent years, the cost of servicing that debt has been tamped down by the willingness of central banks to buy large chunks of it.
LONDON — The state funeral of Queen Elizabeth II cost the U.K. government around £162 million ($201.4 million), the Treasury said on Thursday. The U.K.'s longest-serving monarch died on Sept. 8, 2022, aged 96, at Balmoral Castle in Scotland. A 10-day period of national mourning, during which most businesses and workplaces remained open but many events were canceled, was held ahead of her funeral in Westminster Abbey on Sept. 18. An estimated 250,000 members of the public saw the British queen lying in state in London during the mourning period, with many queuing in the streets of London for more than 24 hours. She was buried at St. George's Chapel in Windsor Castle, Berkshire.
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