The UK’s largest asset manager has been buying bonds and selling equities in preparation for a “significant” economic downturn, warning that the Bank of England will be forced to tip the economy into a recession despite signs of cooling inflation. Sonja Laud, chief investment officer at Legal & General Investment Management, which manages £1.3tn of
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UK inflation eased more than expected to 7.9 per cent in June, providing some relief for the Bank of England ahead of its decision on interest rates next month. Annual inflation was down from 8.7 per cent in May, the Office for National Statistics said on Wednesday. It was lower than the 8.2 per cent
Donald Trump said he was the target of a criminal probe into efforts to overturn the results of the 2020 presidential election, raising the possibility he could face fresh federal charges in the coming days. In a development he described as “horrifying”, Trump said he had received a letter from the US Department of Justice
The UK’s financial regulator and information watchdog will warn banks that they cannot hide behind data protection rules if they fail to alert savers to better deals. Under pressure to pass on the benefits of higher rates, banks told the Financial Conduct Authority at a meeting earlier this month that they could not tell certain
Europe will need to step up its response to Washington’s Inflation Reduction Act as the US programme to finance the industrial green transition is set to be larger than expected, Brussels’ economy chief has warned. Paolo Gentiloni, the EU economy commissioner, told the Financial Times that the bloc had enough money on the table for
The Pentagon’s annual funding bill is set to become the focus of a political showdown after Republicans inserted “anti-woke” social provisions into the legislation. The bill — known as the National Defense Authorization Act — is normally shielded from the most bitter partisan bickering and often passes with support from both political parties. But on
Three of the largest US banks reported a surge in profits from charging more for loans, as the Federal Reserve’s series of interest rate rises fattened their bottom lines. JPMorgan Chase, Citigroup and Wells Fargo collectively earned $49bn in net interest income in the second quarter, the difference between what the banks pay for deposits
Rishi Sunak on Thursday accepted in full the recommendations of independent pay review bodies to give key public sector workers wage rises of about 6.5 per cent, telling trade unions to call off strikes now. The prime minister agreed the awards for 2023-24 after talks with chancellor Jeremy Hunt, when he was reassured they could
US inflation dropped to 3 per cent in June, lower than expected, in the latest sign that the Federal Reserve’s interest rate rises are having an effect on price pressures. The annual increase in the consumer price index slowed from 4 per cent in May to 3 per cent, the slowest rate of inflation since
A federal judge denied the US competition regulator’s attempt to block Microsoft’s $75bn purchase of Activision Blizzard, ruling that the Federal Trade Commission had failed to show the deal would harm competition in the video game market. Shares in Activision rose more than 5 per cent. “The FTC has not shown it is likely to
Andrew Bailey, Bank of England governor, will warn on Monday that the “unexpected resilience” of Britain’s economy has exacerbated wage and demand pressure that is fuelling stubbornly high inflation. He is due to tell the annual Mansion House dinner in the City of London that current pay deals are unsustainable if the central bank is
The US and Germany are under intense pressure from other allies to show greater support for Ukraine’s eventual membership of Nato, just days before the military alliance’s leaders meet in Lithuania. Washington and Berlin have backed a form of words for the summit’s concluding statement that does not fully endorse a “pathway” to Nato membership,
Chancellor Jeremy Hunt has ruled out big pre-election tax cuts this autumn, warning he must “double down” on inflation and would not “pump billions of pounds of additional demand” into the UK economy. “We will not countenance tax cuts if they make the battle against inflation harder,” Hunt told the Financial Times, admitting that meeting
BP is in talks over a landmark insurance deal for its £30bn final salary pension fund as rising interest gives companies the chance to shift billions of pounds of liabilities off their books. Trustees for BP’s UK defined benefit scheme, which has more than 60,000 members, are in talks with multiple insurers over a so-called
Russian warlord Yevgeny Prigozhin has been spending time in Russia, Belarusian president Alexander Lukashenko said, despite a peace deal with Moscow under which he had agreed to relocate to Belarus. Prigozhin’s Wagner Group fighters had also not been transferred as the deal specified, Lukashenko claimed, while suggesting the mercenary leader was unlikely to face repercussions
The UK has paid the highest borrowing cost on two-year debt this century at an auction of £4bn of gilts, as the recent surge in bond yields feeds through to the government’s finances. Gilt prices have slumped in the past few weeks, pushing yields sharply higher, as stubbornly high inflation stokes expectations that the Bank
The average cost of five-year fixed-rate UK mortgages has hit 6 per cent for the first time since November, as banks are called to respond to concern that savings rates are lagging behind rises in borrowing costs. The residential mortgage rate reached 6.01 per cent on Tuesday, according to data provider Moneyfacts, as the Bank
Currency speculators have boosted bullish wagers on the pound to the highest level for nine years despite recent signs that sterling’s strong rally this year is flagging. The growing consensus among speculative investors, such as hedge funds, comes after sterling has already rallied strongly this year, driven by the Bank of England’s effort to lift
The world’s largest active bond fund manager says markets are too optimistic about central banks’ ability to dodge a recession as they battle inflation in the US and Europe. Daniel Ivascyn, chief investment officer at Pimco, which manages $1.8tn of assets, said he was preparing for a “harder landing” than other investors while top central
Rioting erupted across France for a fourth night in the wake of the fatal police shooting of a 17-year-old driver of North African origin as his family prepared to bury him on Saturday in his hometown of Nanterre. The interior ministry said 994 arrests were made overnight compared with 875 on Thursday night and suggested
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