Last week, Britain’s economic landscape continued to struggle due to the energy shock driven by the conflict in Iran, leading to Ofgem (“the Office of Gas and Electricity Markets”) announcing a 13% rise in energy bills. This and other inflationary measures mean the headline inflation will likely remain above the BoE’s (“Bank of England”) target for a fifth consecutive year. BoE Governor Andrew Bailey indicated that while rate cuts are off the table, recent bond market tightening has bought the central bank time to monitor the conflict's volatility. Investors have subsequently scaled back their interest rate expectations, pricing in just a small increase by year-end. There is also stagnation in the labour market. Resignation rates have dropped to 0.55%, with workers clinging to existing roles due to fewer vacancies; higher employer taxes; and automation threats...
Stocks featured:
International Consolidated Airlines Group, JD Sports Fashion and Melrose Industries
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