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FTSE 100 Live: Shares soar as banks pass stress test, pound at $1.30


FTSE closes at 7,416.11 after gaining 1.8%

The FTSE 100 closed at 7,416.11 today after gaining 1.8%.

London-blue chip INDEX rose on positive news from the banking sector in stress tests across the economy. Falling US inflation also helped assuage some concerns about rate hikes across the Atlantic.

The mining company was one of the biggest gainers, with Antofagasta topping the pack as its shares rose 5.2%. But it was a strong day for almost every large-cap company in London, as 97 of the FTSE 100 saw a rise in share prices. The main exception is IAG, owner of British Airways, which fell 2% after Deutsche Bank downgraded.


City comment: At least our banks are not in danger of bankruptcy

Some good news from the Bank of England, where optimism is sorely lacking.

Our banks will not go bankrupt.

Stress tested anyway, they should be fine almost no matter what happens to the rest of us, Threadneedle Street reports today.

The Bank’s scenario includes unemployment rising to 8.5%, inflation rising to 17% and house prices falling 31%. If those happen, banks “will continue to be resilient and able to support households and businesses,” the Bank said today.

So that’s something.

Read more here


Traders see Bank of England top rates lower

City traders now expect Bank of England interest rates to peak at 6.25%, with a high probability that rates will not exceed 6%, following the daily bank stress test today and US inflation data.

Rates are expected to peak in March at 6.25%, a welcome change from the 6.75% peak seen at one point last week.

The central bank’s monetary policy committee is meeting next August and traders think they will be close to the 50/50 target whether they raise rates by a quarter of a percentage point or a half. or not.


New York stocks start strong after reassuring inflation numbers

The S&P 500 rallied at the start of the New York session, supported by inflation data that raised hopes the Federal Reserve’s bull fight was beginning.

Wall Street’s overall stock index rose 44 points to 4483.0, led by banking and financial companies.

The gain came after the annual inflation rate cooled to 3% in June, down a full percentage point from the previous reading for a larger-than-expected drop and bringing it closer to a percentage point above the previous reading. with the Fed’s 2% inflation target.

In money markets, the dollar took a hit, with the numbers suggesting the US central bank has time to continue to pause on rate hikes.


Channel 4 boss Alex Mahon gets a pay rise to £1.5m as low-paid freelancers suffer multiple cuts

Channel 4 boss Alex Mahon’s pay rose by a quarter to £1.5 million last year, while low-paid freelancers have to take the brunt of many cuts at the broadcaster.

Mahon was awarded £750,000 in bonuses, in a year in which revenue fell 2% to £1.14 billion. Channel 4 has barely produced a surplus or profit for the year, as this has dropped from £101m to just £3m.

Channel No. 4

Finances are expected to get worse this year as advertisers reduce their spend. Analysts expect ad revenue to drop between 10% and 20% in the first half of this year.

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Monzo eyeing acquisition of Nordic rival Lunar

London fintech Monzo is preparing to bid to merge with Nordic rival Lunar as it accelerates its European expansion.

As reported by Bloomberg, the mobile bank is holding discussions with Denmark-based Lunar about the terms of the deal. It is also looking at other acquisitions in Europe.

Lunar, a digital bank with more than 650,000 users across Denmark, Sweden and Norway, reached a valuation of $2.2 billion after a new funding round last year, while Monzo’s valuation hit $4. $0.5 billion by 2021.

Monzo declined to comment.

Plans to make Monzo the latest London fintech to gain attention are expanding in Europe after the Bank of London said today it is hiring 300 staff and has officially applied to the EU for a banking license.

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/ Average AP


One in three Britons avoid social events because of work because they are ‘boring’ and a ‘waste of time’

More than one in three Britons say they avoid work parties because they are “boring” and “a waste of time”, according to a new study.

A Gallup poll for events business company Togather found that 35% of respondents actively avoid social events at work. One in five also said their workplace social events did not sufficiently include people from underrepresented groups.

Togather co-founder Hugo Campbell said: “It was disheartening to discover that 35% of employees actively avoid attending parties at their current workplace due to finding them dull and unproductive. .

“This puts the onus on business owners to create truly engaging and inclusive workplace events that reflect the value they place on their employees. It’s no longer enough to rely on beige buffets, standard holiday celebrations or regular Friday night pub trips. Instead, businesses must provide meaningful experiences that show appreciation for their employees.”

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Wall Street stock futures strengthen on hopes the Fed is winning the inflation war

Wall Street stock futures rose today, on hopes that the latest set of US inflation numbers is a sign that the Federal Reserve’s war on inflation is beginning.

The S&P 500 was on track to gain more than 30 points when it opened to 4507.75 in futures trade.

It comes after the consumer price index in June fell deeper than expected, to 3%. take its attenuation from the previous reading to a full percentage point.

The dollar took a hit with numbers seeking to give the Fed more time between rate hikes after the agency paused them at its previous meeting. The index that tracks the world’s reserve currencies against a basket of alternatives fell 0.7% to 101.07.


US inflation falls to 3%, falling faster than forecast but real income rises

The annual US inflation rate has cooled faster than forecast today, in stark contrast to the stronger upside ravaging the UK.

The consumer price index for June fell to 3%, a deeper drop than expected, after economists had predicted a 3.1% reading. It also fell one percentage point from the previous 4%.

June’s monthly CPI was also lower than forecast at 0.2%, instead of 0.3% as expected, although it was up from 0.1% previously.

But the month’s data isn’t all that cheery for the Federal Reserve, which, like the Bank of England, is caught in an acrimonious fight against inflation using rate hikes as a stimulant. main weapon.

Real earnings rose 0.5% month-on-month, expected to fall 0.1%, in line with previous results.


Rental market crisis emerges as landlords face ‘raise rent or sell out’ dilemma

The Bank of England warns the UK rental market could be facing a crisis, as landlords facing soaring mortgage rates may have to make choices that force tenants to pay more. or sell and push down house prices.

The bank said the rental sector would be hardest hit by the ongoing mortgage turmoil, as rapidly rising interest rates “could drive homeowners to sell, putting downward pressure on home prices”.

It added: “Also, they may seek to continue to pass higher costs on to tenants.”

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