United Kingdom

U.K. Grocery Inflation Rises as Consumer Spending Remains Tight, Report Says

U.K. grocery inflation ticked up slightly after August’s fall, according to the latest report from research firm Kantar, the Wall Street Journal reported. Annual grocery inflation increased to 2% for the four weeks to Sept. 29, up from 1.7% recorded in the month prior. The data comes ahead of the government’s Autumn budget and shows consumer spending remains tight. Spending on promoted items continued to rise, increasing by 7.4% in September as households sought to manage their finances. In comparison, full price sales rose by just 0.3%.
United Kingdom
Read more

BOE’s Top Economist Cautions Against Cutting Rates ‘Too Far or Too Fast’

Bank of England Chief Economist Huw Pill warned against cutting interest rates “too far or too fast” as he set out his case for a “gradual withdrawal” of restrictive monetary policy over the coming months, Bloomberg News reported. Pill, one of the more hawkish members of the Monetary Policy Committee who opposed the quarter-point rate point cut to 5% in August but voted to hold in September, said he is concerned that inflation could prove “more lasting” than expected.
United Kingdom
Read more

Trailer Park Deal Gone Awry Risks Losses For UK Asset Manager

UK investment manager Intermediate Capital Group Plc is suing a real estate services firm over property valuations it says were inflated and against which it lent hundreds of millions of pounds, Bloomberg News reported. The case revolves around an estimated £500 million ($657 million) owed to ICG funds by caravan park owner RoyaleLife, people with knowledge of the matter said. The retirement-focused real estate business collapsed last year and its owner, Bob Bull, was declared bankrupt.
United Kingdom
Read more

BOE Warns of Sharp Correction as Geopolitical Worries Mount

Financial markets remain vulnerable to a sharp correction, the Bank of England warned Wednesday as a twice-yearly survey found that geopolitical developments are seen as the greatest threat to stability, the Wall Street Journal reported. The BOE’s Financial Policy Committe has repeatedly warned that valuations of many financial assets, particularly equities, are “stretched” and could fall sharply in response to economic or geopolitical shocks.
United Kingdom
Read more

Cineworld Restructuring Approved Despite Landlords' Challenge

Cinema chain operator Cineworld's restructuring plan was approved by London's High Court on Monday, despite opposition from two landlords, Reuters reported. Cineworld, whose brands include Regal, Cinema City, Picturehouse and Planet, set out a plan in July to restore to profitability, including addressing its lease portfolio and rental terms with landlords in Britain. Like other operators, Cineworld, which operates in 10 countries with 9,189 screens, was hit hard by the COVID-19 pandemic, when many movie releases were postponed or went directly to streaming platforms.
United Kingdom
Read more