FTSE 100 Live: Inflation hits 10.1% on surging food prices, more rates pressure

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Inflation is back in double digits after a hike in food and beverage prices, sending the September annual rate as high as a 40-year high of 10.1%.

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Today’s reading from the Office for National Statistics is more than 10% higher than the city’s expectation, compared to 9.9% last month.

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It adds to the pressure on the Bank of England to announce another major hike in interest rates at a policymakers meeting early next month.

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New York shares have a steady start as investors track earnings news

New York’s S&P 500 made a steady start to trade as well-received earnings news from the likes of Procter & Gamble and Netflix fell for the offset banks and recession for one of its constituents, which Missed the forecast, Jenack.

The maker of back-up power generators fell more than 20% after cutting its sales guidance and missed analysts’ forecasts for the third quarter,

Netflix, which reported a return to subscriber growth after the end of last season, rose 13%. Procter & Gamble, which reported quarterly earnings and sales ahead of forecast, rose about 3%.

Overall, New York’s broad index slipped 5 points to 3714.69, down 0.1%.

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What went wrong with Asos?

It wasn’t that long ago that Asos was the darling of both the stock market and trendy twenties who thought fast fashion had changed their lives.

The first As Seen had a stellar niche in the business of on-screen, creating imitation versions of clothing shown at amazing speed by the rich and famous.

It was an impressive operation. Shares of Asos rose to over 7500p at one point in March 2018.

Over the past five years, the same stock is down 90%. The relevance and cleverness of the company seems to have been fleeting.

what went wrong?

read more here

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Price rise helped propel Procter & Gamble earnings above previous forecasts, Wall Street set for higher open

Rising prices on a range of consumer products made by US giant Procter & Gamble helped forecast its profit and revenue, helping to cheer Wall Street futures.

The company behind Head & Shoulders Shampoo and Ariel Washing Powder reported quarterly net sales of more than $20 billion, well ahead of forecast. Earnings per share, the most-watched metric by analysts, came in at $1.57, better than the $1.54 estimated according to a survey by financial data provider, Refinitiv.

Its shares were up 0.8% in pre-market trade.

Overall, futures pointed to a 42-point gain for the S&P 500, which would take the New York stock index to 3719.98, an increase of 1.1%.

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FTSE 100 Below 12 Marks: Lunchtime Update

The FTSE 100 is down 12 points after four hours of trading session in London. Here’s a look at some of the biggest movers of the day:

It’s loading….

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Pound knocked out as inflation returns to 40-year peak worries economy

Sterling is back under pressure as traders believe the economic effects of inflation have once again topped 10%.

The pound was down 0.8% at $1.1227, having closed above $1.13 at the end of the previous session. The fall comes even as September data paves the way for a rate hike at the Bank of England’s next meeting in November. City businessmen and analysts had pointed to ways of easing pressure on the BoE from the recent demolition of the UK’s “mini-budget”, including a reduction in the duration of measures to subsidize energy bills.

James Smith, developed market economist at ING, said: “The dramatic reduction in fiscal support by the new chancellor would be seen as easing medium-term inflation, and that would be of greater interest to BOE policymakers. We scaled back our is forecast for the November meeting to increase to 0.75% from the earlier 1%.

The return to double-digit inflation driven by food costs has raised concerns about the extent to which prices are rising at a time when the economy is also heading towards a recession.

Danny Hewson, financial analyst at AJ Bell, said: “Businesses are also concerned. They are fighting their own cost battles and dealing with falling consumer confidence and declining discretionary spending. They’re also tracking today’s inflation numbers with some nervousness and contemplating what it’s going to do to their business rate costs.

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Private equity pours £9m into sustainable fisheries firm

Square Mile’s ambitions for eco-friendly investments got a boost today as London-based private equity business Ocean14 Capital committed €10 million (£9 million) to help develop Tilbras, Brazil’s sustainable fish business.

The money will be used to expand Tilbras’ base, where it cultivates the local fish tilapia. The investment is earmarked to increase efficiencies and improve the efficiency of production.

According to Tilabras, tilapia aquaculture is six times more efficient than animal husbandry, which converts plant-based feed into animal protein. The fish are also generally more affordable than other farmed fish, while the production model of tilbrass allows the fish to feed on a sustainable vegetarian diet while reducing their CO₂ footprint.

This is the third investment by Ocean 14 Capital, which claims to be the first major investment fund to focus exclusively on the “blue economy”, since its launch in December 2021.

Nicholas Landolt, founder of Tilbras, said: “Ocean14 Capital’s expertise, knowledge and the fund’s ability to execute will help us drive growth while improving resource efficiency.”

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Top city investment houses calculate the cost of volatility in the stock and bond markets

Some of the city’s best-known names provided new insight into the impact of a simultaneous decline for the stock and bond markets this year as investors pulled money out of fund managers.

Man Group, one of the world’s largest listed hedge funds, said the third quarter was “very difficult for the asset management industry” as it reported a nearly $4 billion drop in assets under management to above $138 billion. gave information.

The FTSE 250 company lost $4.5 billion on a strong dollar in the third quarter and net outflows from its fund of £500 million. Its “absolute return strategies” brought in $1.6 billion from a mix of investments designed to prosper during falling markets, rather than just grow overall.

Mann called that “a strong investment performance.” Its traditional long-only fund lost $1.4 billion. Rathbones, one of the oldest investment houses in the Square Mile, reported a £1 billion drop in funds under management and administration of £57.9 billion.

Quilter, the asset manager formerly known as Old Mutual, fell by around £12 billion in assets under management and administration to less than £97 billion. It said the fall reflects “a challenging summer market backdrop”. But it continued to pour money into its fund with a net inflow of £200 million.

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Revolut clashes with Airbnb over launch of holiday home business

Revolut is looking to lock horns with Airbnb as the fintech giant launches its holiday home rental business.

The London-based firm hopes to entice its debit card customers with more competitive exchange rates and the ability to automatically split the bill between holidays with the promise of 4% cashback on every rental away from booking with its San Francisco rival. Still working. overseas travel.

Customers will be able to search, book and pay for their stay using the Revolut app.

Christopher Gutridge, General Manager of Lifestyle Products at Revolt, said: “When it comes to travel, we know the needs of our customers are changing more and more. Big or small, budget or boogie, local home or chic- Hotels – Any kind of place our customers want to book, all in one place.”

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Banks fall on tax fears, FTSE 250 falls 1.5%

Shares of Lloyds and NatWest have fallen as speculation mounts that Chancellor Jeremy Hunt is conducting a tax raid on their earnings.

Hunt’s plan to tackle the £40 billion hole in public finance is due on 31 October, with the Financial Times reporting that increased profitability of companies in the banking and energy sectors will be in their sight.

Banks currently pay a combined tax rate of 27% on their profits, which is made up of a corporation tax at 19% and a bank surcharge of 8%.

The latter should have dropped back to 3% when the corporation tax rises to 25% the following year.

If Hunt opts for a surcharge of 5% instead, the FT estimates the Treasury could rake in an additional £500 million or more a year as industry profits increase at higher interest rates.

Speculation dealt another blow to investors, with Lloyds falling 4% or 1.8p to 40.8p and NatWest down 6.8p to 229.9p. In contrast, shares of Asia-focused HSBC corrected 4.4p to 470.15p.

Michael Hewson, chief market analyst at CMC Markets, called the planned move “incredibly short-sighted.”

He said: “It seems ridiculous to double unforeseen taxes on a sector that dares to make much in the way of profit. This is a strange way of encouraging long-term investment in the UK economy, which is crying out for inward investment.

Hunt is due to extend the government’s unexpected tax on oil and gas producers beyond 2025, but that speculation failed to dent stocks as BP added a penny at 446.4p and Shell went from 7p to 2246p.

The FTSE 100 index fell 36.94 points to 6899.80, while the UK-focused FTSE 250 index fell 1.5%, or 253.74 points, to 17,275.57, as fears of a more aggressive interest rate hike fueled by today’s 10.1% inflation print.

J.D. Sports Fashion Shed fell 2% or 2.44p to 96.5p and FTSE 250-listed Currys and Marks & Spencer sold heavily at retailers, down 2.8p to 62.85p and 2.3p to 101p, respectively.

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Analysts react as inflation hits 40-year high

New figures released by the city’s analyst office have arrived at…

Credit: www.standard.co.uk /

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