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.