It’s Bank of England rate-decision day, with investors and economists expecting the central bank to dial down the pace of increases. While inflation dipped last month, the cost-of-living squeeze goes on — as Bloomberg’s latest Breakfast Index shows. This morning’s corporate updates saw banks continue to hire and power group Drax warning of a “difficult winter.”
(Bloomberg) — It’s Bank of England rate-decision day, with investors and economists expecting the central bank to dial down the pace of increases. While inflation dipped last month, the cost-of-living squeeze goes on — as Bloomberg’s latest Breakfast Index shows. This morning’s corporate updates saw banks continue to hire and power group Drax warning of a “difficult winter.”
Here’s the key business news from London this morning:
In The City
Lloyds Banking Group Plc: The lender announced that Ron van Kemenade will join next year as chief operating officer from ING Groep NV, where he is the chief technology officer.
- “This is a pivotal role for our business given the pace of tech innovation and the importance of technology and data as a key enabler to helping us deliver our long-term growth strategy,” Lloyds CEO Charlie Nunn said
Numis Corp Plc: The UK investment bank is expanding its Dublin office with three appointments to grow its offering to clients in Europe.
- The firm said it is hiring Rob Fallon from Goodbody as a director for equity sales trading, Peter Davis from Citigroup Inc. as director of investment banking and Cian Fanning from Davy as director of equity sales
Drax Group Plc: The power company said it sees a “difficult winter ahead,” adding that it will continue to optimise its biomass operations to ensure that more renewable power is available, “when the country needs it most.”
- The company also said that thanks in part to the “strong pumped storage and hydro performance” in the second half of the year, it now expects that full-year adjusted Ebitda will be slightly above the top of the range of analyst expectations
Currys Plc: The electronics retailer said its international business had a “difficult” first half with margins sinking “sharply.” Lower demand has left domestic competitors with excess stock, “which they’re now heavily discounting,” the firm also said.
In Westminster
Later today, the Bank of England is likely to slow the pace of interest-rate rises as it balances risks from high inflation with concerns that overly aggressive action might unnecessarily deepen the recession ahead.
That’s as UK bond traders seeking shelter from this year’s turmoil are piling into 10-year securities, a section of the market that’s been relatively insulated from central bank action.
Meanwhile, the government has begun talks on a scientific cooperation deal with Japan it hopes to sign in May, as Britain remains blocked from the EU’s key research funding program post-Brexit. Bloomberg Opinion says that by curtailing student visas, the UK could “blow one of its last great advantages.”
In Case You Missed It
Those who have experienced racism and misogyny at Savills, the 167-year-old UK real estate company, say its culture enables bad behaviour. Management says it’s making “good progress.”
London-based Brevan Howard Asset Management’s new digital currency fund escaped with a single-digit loss after it held cash during some of this year’s crypto meltdown.
Finally, Britain will set a June 2024 deadline for airports to upgrade security scanners so that liquids can be packed with hand luggage, ending the requirement for items such as sunscreen and shampoo to be presented at security gates in a separate plastic bag.
Looking Ahead
Retail sales, due to be published at 7:00 a.m. tomorrow, are expected to have risen in November as consumers started shopping earlier for Christmas. This trend may “in part reflect growing promotions as well as consumers fearing stocks running out,” Bloomberg economists say, adding that overall consumer spending was likely to be scaled back with household budgets remaining under pressure.
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–With assistance from Charles Capel.
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