UK banks start cutting ‘Truss premium’ from mortgage rates, but slowly
Having hiked mortgage rates after political turmoil drove up the cost of borrowing, British banks are now cutting home loan prices, albeit slowly, as markets calm since Liz Truss’s government collapsed and Rishi Sunak took power.
Analysis: Massive turnaround for stocks puts traders on alert for more volatility
An eye-popping turnaround in stocks may be less bullish than hoped for, with traders saying short-term hedging activity buoyed equities while leaving the market’s grim fundamentals unchanged.
UK labour market exodus drives jobless rate down to 3.5%
Britain reported a record jump in the number of people leaving the labour market in the three months to August, adding to the Bank of England’s inflation headaches.
Analysis: British banks’ mortgage payday comes with sting in the tail
While British households head into a winter of soaring energy costs, a tumbling currency and nearly double-digit inflation, the country’s banks are in line for a handsome payday as mortgage prices spike after a decade of stagnation.
Stocks ease as Ukraine attacks and rate outlook spark flight to havens
Global shares dropped on Monday after Russian missiles pounded cities across Ukraine and as renewed concern about the economic outlook sent investors into safe-haven assets such as the dollar and bonds.
Morning Bid: Oil and jobs
World markets calmed a bit on Wednesday after a tumultuous couple of weeks – but a focus on energy prices and U.S. employment promised more tension ahead.
Analysis: Sterling returns to the 1980s, and it may get cheaper still
Sterling’s slide against the dollar to a rate last seen in 1985 has sparked talk of a dramatic spiral downwards that ends in a collapse in confidence in British assets and a balance of payments crisis.
Morning Bid: The 75bp club
Most of world’s major central banks are now going up a gear with historically sweeping interest rate rises to cool their economies and drag down inflation – and there are some signs it’s already working.
UK midcaps at three-week low as recession fears grow
UK midcaps hit a three-week trough on Monday while the export-centric FTSE 100 eased from its recent peak on fears of aggressive interest rate hikes by major central banks and slowing economic growth.
Morning Bid: Yuan, euro and pound head down the Hole
Global central banks are scattering again, propelling a resurgent U.S. dollar to its highest in almost two years against China’s yuan and back through parity against the euro.
