Chancellor Jeremy Hunt’s Autumn Statement laid bare a bleak new reality for the British economy, which was underscored by the latest retail sales data this morning. Britons’ consumer confidence, meanwhile, ticked higher in an audible sigh of relief following Liz Truss’s short tenure. Escaping from the gloom is another reason for England to hope for a win at the FIFA World Cup, which kicks off Sunday.
(Bloomberg) — Chancellor Jeremy Hunt’s Autumn Statement laid bare a bleak new reality for the British economy, which was underscored by the latest retail sales data this morning. Britons’ consumer confidence, meanwhile, ticked higher in an audible sigh of relief following Liz Truss’s short tenure. Escaping from the gloom is another reason for England to hope for a win at the FIFA World Cup, which kicks off Sunday.
Here’s the key business news from London-listed companies this morning:
In The City
UK Retail Sales: The volume of goods sold in shops and online was weaker than expected in October, underlining the cost-of-living crisis draining consumer spending power.
- Excluding fuel sales, the volume of goods sold in shops and online rose 0.3% after a 1.5% drop in September, when stores were closed for the funeral of Queen Elizabeth II. Economists had forecast a 0.6% gain
Legal & General Group Plc: The asset management firm said the chancellor’s planned Solvency II reform was “a positive step forward,” which will allow the firm greater flexibility to invest in new infrastructure.
- The company said its Pension Risk Transfer business continued to perform “strongly” and is “actively engaging” with pension schemes that have, or are close to having, a surplus as a result of rising interest rates
MJ Gleeson Plc: The low-cost homebuilder said that its full-year outlook depends on the pace of the housing market recovery, adding that the company was “encouraged” that Hunt’s Autumn Statement could restore stability.
- The company experienced a significant slowdown in demand after interest rates shot up in reaction to Liz Truss’s mini-budget
Read about the earnings coming up next week: EMEA Earnings Week Ahead: Compass, Virgin Money, Naspers, Prosus
In Westminster
Chancellor Jeremy Hunt administered the “smallest dose of fiscal medicine” he could in yesterday’s Autumn Statement, writes Bloomberg Opinion’s Marcus Ashworth. “But the unpalatable truth is that there’s a lot more to come as he tries to nurse the ailing UK economy through a recession.”
UK consumer confidence ticked higher in October, with market research firm GfK Ltd. saying the fillip was likely to reflect “nothing more than a collective sigh of relief as a new prime minister takes charge.”
The FIFA World Cup is set to kick off Sunday. England could use a win — for the economy, says Bloomberg Opinion’s Andrea Felsted.
In Case You Missed It
Fintechs, including London-based Revolut Ltd., are trying to reassure customers about their cryptocurrency offerings after the implosion of crypto exchange FTX.
The UK is tilting bond sales toward shorter maturities in the coming months to alleviate a shortage of collateral that has been distorting money markets, the country’s debt chief said.
Elsewhere, Portugal is considering to end its golden visa, which could make it harder for UK investors to access and travel through the European Union.
Looking Ahead
Virgin Money UK is due to report full-year results on Monday. The challenger bank’s unsecured lending business has benefited from Britons taking out more credit cards to help them through the cost-of-living crisis this year. But, with the UK probably in recession, the firm’s asset quality will come increasingly into focus in fiscal 2023.
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