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UK bonds suffer worst ever start to year

Thanks for joining me. JP Morgan paid its chief executive the highest salary ever at the bank as its profits and stock price outperformed peers.

Jamie Dimon receives $36m (£28.4m) for 2023, up 4.3% on the previous year.

5 things to start your day

first) Hunt plots tax cuts as the inflation crisis eases | The Prime Minister admitted that voters are ‘very angry’ about high taxes

2) Thousands of jobs are at risk of being affected by net zero plans at Britain’s largest steel mills | Tata Steel plans to decarbonize by replacing blast furnaces with green technology

3) Norfolk couple wins against Louis Vuitton over ‘absurd’ name dispute | The battle of ‘David and Goliath’ ends in victory for the horticultural business

4) Ben Marlow: A fleeting Christmas won’t restore faith in Royal Mail | The company’s misplaced optimism did little to distract from the pervasive sense of recession

5) Matthew Lynn: Sunak’s pride allowed Labor to prevail at Davos | England’s main champion missed the chance to turn the country’s fortunes around

What happened overnight

Asian shares rebounded on the back of a rebound in global chipmakers, while the yen is set to end the week with heavy losses as investors cut bets that the Bank of Japan will soon abandoned its too-relaxed policies.

Taipei-listed shares of Taiwan Semiconductor Manufacturing Company (TSMC) rose 6.3% after the chipmaking giant projected 2024 revenue growth of more than 20% %. Its US shares jumped nearly 10% overnight, spurring a broad tech rally on Wall Street.

Tokyo stocks closed higher on Friday, led by gains in chip-linked stocks, with the benchmark Nikkei 225 index adding 1.4%, or 497.10 points, to 35,963.27, while the broader Topix index ended up 0.7%, or 17.94 points, at 2,510.03.

Data showed Japan’s core consumer inflation slowed for a second straight month in December, adding to speculation that the BOJ is in no hurry to tighten its ultra-loose monetary policy.

The yen lost 0.2% to 148.48 per dollar, falling nearly 2.5% on the week to its lowest since early December.

Chinese stocks slid again after escaping a five-year low a day earlier thanks to signs of state support. Chinese bluechips fell 0.3% while Hong Kong’s Hang Seng index fell 0.2%.

Wall Street bounced back on Thursday and recouped almost all of the losses it suffered earlier in the week.

The S&P 500 rose 0.9% to 4,780.94, while the Dow Jones Industrial Average of the top 30 U.S. companies rose 0.5% to 37,468.61. The Nasdaq Composite index, which focuses heavily on technology stocks, rose 1.3% to end at 15,055.65.

The 10-year Treasury yield rose again on Thursday, to 4.13% from 4.11% late Wednesday suggesting less confidence in an impending rate cut. But the move was softer than earlier in the week, when it increased from 3.95%.


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