Today's business and finance round up 6th July 2022
Bank of England issue bleak warning over UK economy
6th July 2022
Bite-sized business news from the UK and beyond
Good morning What an eventful 12 hours it's been in the world of politics! This morning the UK is waking up to a new Chancellor and Health Secretary. Here's a breakdown of who could come next if Boris Johnson's time has run out as PM.
Today's stories
Bank of England issue bleak warning over UK economy
Church of England set to make bond market debut
ECONOMYBank of England issue bleak warning over UK economy
UK inflation is at a 40-year-high of 9% and expected to climb to 11% before the end of the year.
The war in Ukraine has added further inflationary pressure driving up energy and food prices.
Central banks worldwide have started pushing up interest rates from their pandemic levels to cool prices by slamming the brakes on the economy.
Other stories to keep you in the loop
Sunak's resignation letter reveals tensions over economy trouble
British Airways cancels 1,500 more flights
UK new car sales slump to worst June in 26 years as manufacturers struggle with supply problems
Sainsbury’s boss warns UK living costs squeeze will ‘only intensify’
Revolut moves into stores with physical card readers
Whiskas and Pedigree pet food manufacturer suspends supply to Tesco in fresh price row
Supermarkets add security tags to Lurpak as price soars to £9 a tub
UBS sublets London office ‘grey space’ as more staff work from home
Euro hits 20-year low against US dollar over recession fears
RELIGIONChurch of England set to make bond market debut
The collection plate is making its way to an unusual place. For the first time, the administrative body of the Church of England which has 85m members worldwide, is tapping the bond market to raise funds, according to to Bloomberg.The Church Commissioners for England oversees a $10bn investment portfolio on behalf of the church and plans to raise funds on the public debt market. The money raised will be used for general church activities as well as funding environmental and social projects. Church representatives began to gauge interest from markets this week with investor meetings arranged by Wall Street banks. It’s expected that the Church will be considered a safe issuer, but it comes amid a difficult financial backdrop:
Corporate bond sales denominated in pounds are being issued this year at half the pace they were in 2021, according to Bloomberg data. Many firms have scrapped debt sales or put plans on hold to wait out market volatility.
Borrowing costs in the UK are trending higher — the Bank of England has hiked its main interest rate five times this year, and further hikes to the current 1.25% rate are expected.
Zooming out: Although a bond issuance will be a first for the Church of England’s main body, other parts of the Church have raised funds in the market before. Its Pensions Board has two bonds outstanding worth £150m.
Stat of the day
Today national insurance starting thresholds will increase to £12,570, from £9,880 a change the government said will benefit 30m UK workers
Interesting links from around the web
Why now is a good time to ask for a raise
3 simple ways to deal with a bad boss
The surprising reason supermarkets sell flowers
