Tag: UK

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UK inflation rate climbs to 2.2%

UK inflation

The UK’s inflation rate has risen for the first time this year, official ONS figures show.

This indicates that overall prices increased by 2.2% in the year leading up to July, a rise from 2% in June, surpassing the Bank of England’s target.

The anticipated increase is primarily attributed to the less significant drop in gas and electricity prices compared to the previous year.

The Bank of England reportedly anticipates a further increase in inflation this year before it declines again.

The core inflation rate, which is the Consumer Price Index (CPI) excluding food, energy, alcohol, and tobacco prices, was reported at 3.3% in July, a slight decrease from 3.5% in June, according to the statistics office.

Additionally, service inflation, which the Bank of England (BoE) monitors closely, decreased to 5.2% in July from 5.7% the previous month, yet still remains elevated.

These inflation statistics follow the release of data on Tuesday 13th July 2024, which revealed that the average wage growth excluding bonuses was 5.4% from April to June year-on-year, the lowest in two years.

Concurrently, the unemployment rate dropped to 4.2% during this period, down from 4.4% between March and May 2024.

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UK unemployment falls slightly and pay growth slows

UK employment data

Official figures indicate a slight decrease in the UK’s unemployment rate, which was 4.2% in the three months to the end of June 2024, a drop from the previous quarter’s 4.4%.

In contrast, UK wage growth has decelerated, with an annual increase of 5.4%, marking the lowest rate in approximately two years.

Not all positive

The Office for National Statistics (ONS) has acknowledged some positive developments, yet it also noted indications of a ‘cooling’ job market, evidenced by an increase in job vacancies, a rise in redundancies, and a persistently high number of individuals not actively seeking employment.

This trend emerges as businesses are grappling with escalating operational costs and potentially reducing their recruitment efforts.

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U.S. stock markets rise after days of turmoil

Stocks up

U.S. shares gained on Tuesday 6th August 2024, signalling a tentative stabilisation in global markets after a period of significant declines.

The Nasdaq, known for its tech-centric portfolio, along with the Dow Jones Industrial Average and the S&P 500, all ended the day in more positive territory.

This ‘lift’ came after a period of muted activity in UK and European markets, with London’s FTSE 100 experiencing an initial surge before retreating.

In Japan, the Nikkei 225 stock index recorded a substantial rise of 10.2%, or 3217 points, marking its largest single-day point increase following a steep drop the day before.

The recent turmoil in the stock market was triggered on Friday 2nd August 2024 by unsatisfactory U.S. job data for July 2024, which indicated an increase in unemployment, raising alarms over a potential recession.

Additionally, there has been growing apprehension that stocks of major technology firms, especially those with significant investments in artificial intelligence (AI), may have been excessively valued, leading to challenges for some of these companies.

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Short-sighted policy U-turn as the UK Labour government cancels £1.3 billion of computing projects

AI supercomputer mainframe

A real set-back for UK AI global ambition

The new Labour government has withdrawn £1.3bn in funding previously pledged by the Conservatives for technology and Artificial Intelligence (AI) initiatives.

This includes £800m allocated for the development of an exascale supercomputer at Edinburgh University and an additional £500m for the AI Research Resource, which provides computing power for AI. These funds were announced less than a year ago.

The Department for Science, Innovation and Technology (DSIT) stated that although the funds were promised by the former administration, they were not included in its budget. The decision has faced criticism from some within the industry.

Another blow for the UK’s homegrown tech sector.

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UK national debt as a percentage of GDP is now 99.5%

UK Debt to GDP percentage

Highest ratio since the 1960’s and even higher than that reached during the Covid pandemic of 2020.

The UK’s national debt has reached its highest level since 1962.

Official figures from the ONS show that the total government debt amounted to 99.5% of the economy’s value in June 2024, surpassing the peak levels experienced during the coronavirus pandemic.

The current debt level is comparable to that last observed in the early 1960’s.

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Pound hits highest level versus dollar for a year

Pound Sterling

The pound reached its highest level against the dollar in a year on Wednesday 17th July 2024, as investors wagered that UK interest rates would remain elevated for longer.

New data released on Wednesday 17th July 2024 indicated that inflation was more persistent than some analysts had anticipated, leading traders to reduce their expectations of a rate decrease in August 2024, propelling the pound above $1.30 for the first time since the previous July.

Additionally, the pound’s strength has been supported by market optimism that the newly elected Labour government will provide economic stability.

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UK inflation holds at Bank of England’s 2% target but above projections

UK inflation

U.K. inflation matched the Bank of England’s target of 2% in June 2024, as calculated by data from the Official for National Statistics on Wednesday 17th July 2024.

The main figure was slightly higher than the 1.9% forecast by analysts surveyed by Reuters, aligning with May’s 2% figure.

Following the announcement, the value of Sterling increased modestly, reaching $1.2977 at 7:21 a.m. British Summer Time.

The Bank of England (BoE) closely monitors services inflation due to its significant role in the U.K. economy and as an indicator of domestic price increases, which remained at 5.7% in June. Service inflation remains a stubborn issue and a problem still for the BoE.

The core inflation rate, which excludes energy, food, alcohol, and tobacco, stood at 3.5%, consistent with the rate seen in May 2024.

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Burberry share price slides as company announces profit warning

Luxury goods

Burberry shares slide on Monday 15th July 2024 after the UK luxury fashion group announced a profit warning and a dividend halt and said its chief executive officer (CEO) was being replaced.

The maker of the iconic trench coat described a ‘disappointing’ fiscal first-quarter 2025 in a trading update.

Burberry reportedly said that if the recent trading slowdown continues, it expects to report an operating loss for the first half of this year and full-year operating profit below current consensus.

Shares in the 168-year-old British luxury giant were down 15% on Monday 15th July 2024 in early London trading.

Burberry share price falls to around 745 on Monday 15th July 2024 – one year share price chart

Burberry share price falls to around 745 on Monday 15th July 2024 – one year share price chart
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Which governments hold the most Bitcoin?

Bitcoin cartoon

U.S., UK and Germany hold more Bitcoin than you may think.

According to the Arkham website, the United States’ government holds some 212,847 BTC making it one of the biggest holders of Bitcoin, while the treasuries of the U.K. and Germany reportedly hold around 61,245 BTC and 49,858 BTC each. (These values alter daily).

In addition to Bitcoin, the U.S. government also holds around $200 million in other cryptocurrencies like Ether (ETH), as well as major stablecoins like USDC.

U.S. Bitcoin holding by current value according to Arkham

Data from Arkham (as of 12th July 2024)

Arkham, a crypto intelligence platform focused on deanonymizing entities on the blockchain network, has introduced a dashboard featuring the governments with the largest crypto holdings.

The U.K. government, reportedly ranked second, holds around $3.5 billion worth of Bitcoin at current valuations, according to Arkham’s data. The German government owns roughly $2.5 billion.

UK Bitcoin holding by current value according to Arkham

Data from Arkham (as of 12th July 2024)

Other world governments holding Bitcoin

China, Russia, Ukraine, El Salvador, Finland, Bhutan and many others.

In 2021, El Salvador became the first country to make Bitcoin legal tender and mandated all local businesses to accept payments in BTC. 

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Labour Party win 2024 UK election in landslide victory after giving the Conservative Party a drubbing!

Labour Party win 2024 election

The U.K.’s opposition Labour Party secured a significant parliamentary majority in the 2024 general election, displacing the incumbent Conservatives after 14 years in power.

Labour surpassed the threshold of 326 majority required to govern without coalition support as outgoing Prime Minister Rishi Sunak acknowledged the loss. Sir Keir Starmer, the leader of the centre-left Labour Party, is set to become the next prime minister, having declared victory in the early hours.

The Labour Party’s massive majority was achieved as Europe lurches to the right and the UK turns left – very contrasting differences.

The strength and size of the win mustn’t allow the Labour Party to railroad policy.

The Labour Party campaigned on the slogan ‘change’ – but what does that really mean? A change from what to what exactly? Time will tell – but I have my doubts. Having lived through many political changes and many Party promises that slowly drifted away to reality.

It looks very much to me that the win was a vote against rather than a vote for.

However, it was refreshing to witness democracy very much at work in the UK election.

Change!

Come on then Labour – let’s now see what you can do for the people of the UK now that you have trashed the Tories!

You have the majority!

Time for that change.

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“Meet Bill and Bet!”

UK election betting scandal

UK Election betting scandal mars politicians and the police!

Just when you think the state of UK politics couldn’t get any worse… it does!

The ‘clicky’ inner circles of both the Conservative and of the Labour Party with their mucky little antics – placing bets on the date of the UK election – KNOWING THE OUTCOME!!

Why would anyone behave in this way?

No wonder the public are utterly disenfranchised with politics. The morally bankrupt behaviour and greed shown by some in both the Conservative and Labour Party is breathtaking and bereft of any basic moral compass.

These people are broken and should not be in positions of trust representing our country.

And the police too!

UK election betting scandal
“Meet Bill and Bet!”

Billy and Betty off to place their bets!

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“SS Sunak – rats deserting the Sinking Ship!”

Sinking Ship!

SS Sunak – rats deserting a Sinking Ship!

UK Election: I don’t know if it’s just me but… where are all the Conservative Party cabinet BIG hitters?

Sunak has very little support, if any from his cabinet!

Where is Jeremy Hunt, the Chancellor of the Exchequer for example?

He’s not that visible on the election campaign trail. His absence could easily be construed as ‘distinctly unhelpful.’

Where is he?

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“Here… I think you may need this!”

Take cover!

UK election engulfed in yet another politically charged fallout from scandalous greed driven morally bankrupt politicians, and police. All connected to the inner workings of a failed government bereft of any sense of moral duty. The opposition Party are implicated too!

Why?

Is this really the best we can do?

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Nvidia briefly surpassed the individual stock market values of Germany, France and the UK

Market Cap up

The little-known company, Nvidia, now stands alongside Apple and Microsoft in market cap valuation thanks to AI.

In just a little over a year it has all but tripled its market valuation and become a go to investment on Wall Street and around the world.

Nvidia’s market capitalization has recently individually surpassed the total value of the German, French, and U.K. stock markets.

With a market cap exceeding $3.4 trillion, Nvidia now stands above these significant European stock markets in valuation.

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UK hits 2% Bank of England’s inflation target for the first time since 2021

THERE ARE TWO I'S IN INFLATION!

Inflation has reached the Bank of England’s target for the first time in nearly three years, having soared to 11.1% in October 2022, the highest in over four decades – driven by a spike in energy and food prices following the pandemic and Russia’s invasion of Ukraine.

In the year leading up to May 2024, prices increased by 2%, a decrease from the 2.3% rise in the previous month, according to official statistics.

The economy remains a central issue in the lead-up to the general election on July 4th, with all major parties discussing strategies to manage the cost of living.

This discussion precedes the Bank of England’s upcoming decision on UK interest rates this due on 20th June 2024.

The bank is anticipated to maintain the rate at 5.25% – a peak not seen in 16 years – for the seventh consecutive meeting, with the market not expecting a reduction until August 2024.

The decline in May’s inflation rate was attributed to slower price increases for food and soft drinks, recreation and culture, and furniture and household items.

Fuel pump prices remain high.

The inflation target has been achieved – it must be time for a reduction in interest rates.

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“Vote Now! Pay Later. Our Deal. Labour”

UK Election – The Labour Party slogan is ‘CHANGE’ – but ‘CHANGE‘ to what?

I do not support any party. I have no idea what the Labour party stands for anymore. And as for the Conservatives – not a clue either – too many deceits and for far too long!

We have choice – but no choice!

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UK GDP flatlines – not so helpful for Sunak and his election campaign

UK GDP slows

In April 2024, the U.K.’s economic growth came to a standstill, figures released on Wednesday 12th June 2024 indicated, putting a pause on the subdued recovery from the previous year’s recession just weeks before the UK election.

Analysts had anticipated growth a levelling off following a 0.4% expansion in March 2024.

Over a longer period however, the outlook was slightly more positive, with a 0.7% increase in gross domestic product (GDP) in the three months leading up to April 2024.

The construction sector saw a 1.4% decrease, marking its third consecutive decline, and production output fell by 0.9%. However, the U.K.’s dominant service sector witnessed growth, with a 0.2% increase.

The UK had managed modest growth each month in the first quarter of the 2024 as the country emerged from a mild short technical recession.

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Raspberry Pi tech IPO to raise £166 million in London listing debut

Raspberry Pi

The British computing startup Raspberry Pi is aiming to raise £166 million ($211.2 million) from its initial public offering in London on Tuesday 11th June 2024.

The company, known for its compact single-board computers, has set its share price at 280 pence each. Conditional dealing of Raspberry Pi shares will commence on Tuesday, allowing specific investors, such as institutional buyers, to begin trading.

Based on the pricing of its shares, the company is valued at around £542 million.

This is a rare win for London’s stock exchange which has struggled to attract technology listings in recent time, losing out to the U.S.

In early morning trading Tuesday 11th June 2024 – Raspberry Pi shares climbed over 30%