No10 parties, energy bills and rising prices… again!

If you get a sense of deja-vous when reading this, don’t worry, you’re not the only one.

Once again this week has been dominated by parties in Downing Street, energy bills and the cost of living crisis affecting the UK (and the rest of the world.)

The week started with the big news that Australia has a new government for the first time in 10 years. New Prime Minister Anthony Albanese was sworn in on Monday. His government will bring a leftward shift in Australian economic and climate policy.

In short succession, we saw Ofgem (the UK’s energy regulator) announce that they think the price cap in the UK would be raised by another £800 in the autumn. This was met by an outcry from across the country.

Simultaneously, the Government has been focused on the release of the Sue Gray Report which details (this time in full) all the covid rule breaking in Downing Street.

Yesterday, after weeks of pressure, and during the fallout from the Gray report, the Chancellor announced a means-tested raft of measures designed to help everyone in the UK manage domestic energy bills. Most significantly this included a windfall tax on energy companies.

We also saw yesterday figures from the USA showing that GDP had contracted by 1.5%.

In the currency market, there’s been little movement between the Pound and Euro. Once again ending the week where it began. Against the Dollar, Sterling has gained just one point, however, it’s worth noting we end the month at a better place than we were a few weeks ago on this pairing.

Unlike the previous couple of weeks, there have not been many significant economic data releases or other significant movements in key currency pairings. A quiet week for a change.

To end on something more upbeat, in London, after huge delays, the Elizabeth Line has now officially opened. Perfect timing for next week’s many exciting Platinum Jubilee events which we at Cornerstone hope everyone will enjoy.

Previous updates...

BoE Governor: Expect 13%+ Inflation and a Recession!

BoE Governor: Expect 13%+ Inflation and a Recession!

The key update of the week is that the Bank of England has increased its interest rate by 0.5%, the largest increase since the Bank’s operational independence in 1997.  The rate rise comes on the back of a dismal economic forecast by the BoE that forecasted inflation rates of 13%

Fears of recession loom as inflation spirals and confidence declines

Fears of recession loom as inflation spirals and confidence declines

This week has been dominated by the fears of a looming recession following the release of key GDP and confidence data. Significant news was released on Thursday when it emerged that the US economy shrank for a second consecutive quarter. This technical recession is due to a 0.9% GDP contraction

Interest rate rises in the Eurozone & Canada

Interest rate rises in the Eurozone & Canada

It has been a big week in the EU with plenty of data and political action. The ECB has increased interest rates by 0.5%, the first rate rise in the Eurozone since 2011. It comes at a time when inflation has hit record highs of 8.6% and the economic gulf

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