{"id":8518,"date":"2022-10-12T10:28:02","date_gmt":"2022-10-12T09:28:02","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/10\/12\/news-in-review-76\/"},"modified":"2022-10-12T10:40:53","modified_gmt":"2022-10-12T09:40:53","slug":"news-in-review-76","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/10\/12\/news-in-review-76\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cWe are\nexperiencing a fundamental\nshift <\/strong>in the global economy\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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Last week, International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivered a speech in Washington DC entitled \u2018Navigating a more fragile world.\u2019<\/em> She referred to the combined impact of a trio of challenges – recovery from the pandemic, the Ukraine invasion and climate issues \u2013 which have driven a global price surge and referred to how geopolitical fragmentation has made dealing with them even more challenging.<\/strong> <\/p>\n<\/div>\n\n

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She professed, \u201c<\/em><\/strong>We are\nexperiencing a fundamental\nshift <\/strong>in the global economy, from a world of relative\npredictability, with a rules-based framework for international economic\ncooperation, low interest rates, and low inflation\u2026 to a world with more\nfragility \u2013 greater uncertainty, higher economic volatility, geopolitical\nconfrontations, and more frequent and devastating natural disasters \u2013 a world\nin which any country can be thrown off course more easily and more often.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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She spoke about an urgent ongoing need to continue efforts to stabilise\nthe global economy, through monetary policy tightening to bring down inflation,\ndeploying targeted fiscal measures to help the vulnerable, and supporting\nemerging market economies. In their just-released World Economic Outlook the\nIMF has forecast that global growth will slow to 3.2% in 2022 and 2.7% in 2023.<\/p>\n<\/div>\n\n

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UK food retail sector<\/strong><\/strong><\/p>\n<\/div>\n\n

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The latest\nfinancial results from Tesco show that changing consumer habits are\nintensifying the high street battle for shoppers keen to save money. Consumers are continuing a newly established trend to buy more own brand\ngoods, buy less in their weekly shop and being prepared to shop around to get\nmore with their weekly budget.<\/p>\n<\/div>\n\n

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According to Ken Murphy, Tesco\nChief Executive Officer, customers are trying to “make their money go\nfurther, whether they are switching from branded products, between categories\nor cutting back on eating out.\u201d <\/em>The increasing move toward value for money\nhas seen Lidl becoming the fastest growing UK supermarket, with Aldi\nleapfrogging Morrisons to become the fourth largest.<\/p>\n<\/div>\n\n

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Mortgage rates climb<\/strong><\/p>\n<\/div>\n\n

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As the mortgage market continues to deal with the fallout\nfrom the Growth Plan and rate rises, news came last week that the average\nfive-year mortgage rate has nearly reached a 12-year high, with the\ntypical deal now topping 6%. The last time this average figure breached 6% was\nin January 2010. The average two-year fixed rate, which stood at 4.74% at\nthe beginning of October has also risen to over 6%, its\nhighest since November 2008, during the onset of the financial crisis. Wind\nthe clock back one year to October 2021, the average two- and five-year rates\nwere 2.25% and 2.55% respectively.<\/p>\n<\/div>\n\n

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Chancellor Kwasi Kwarteng met with major UK lenders, including Barclays\nand Natwest last week, for discussions which included recent developments in\nthe mortgage market. In a statement following the meeting, the Treasury\noutlined, \u2018<\/em>While it is the responsibility of the sector to provide the best value\nfor mortgage rates, the Chancellor confirmed that the Treasury would continue\nto work closely with the sector in the weeks and months ahead.\u2019<\/em><\/p>\n<\/div>\n\n

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The\nChancellor has been asked by lenders to extend the government’s mortgage\nguarantee scheme due to expire at the end of 2022, which offers government\nunderwriting for 5% deposit mortgages.<\/p>\n<\/div>\n\n

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Medium-Term\nFiscal Plan<\/strong><\/p>\n<\/div>\n\n

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Mr\nKwarteng has brought forward the date for his Medium-Term Fiscal Plan from 23\nNovember to 31 October. Nearly a month before the original date, he will\noutline his plan for balancing the government’s finances, laying out more\ndetail on how he intends to pay for \u00a343bn of tax cuts, in\naddition to plans to reduce debt. An independent economic forecast from the Office\nfor Budget Responsibility (OBR) will be published at the same time.<\/p>\n<\/div>\n\n

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Unemployment falls<\/strong><\/p>\n<\/div>\n\n

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New data from the Office for National Statistics (ONS) has highlighted that the unemployment rate has unexpectedly fallen to its lowest level since the three-month period to February 1974. In the three months to August, the jobless rate reduced by 0.3 percentage points to 3.5%. <\/p>\n<\/div>\n\n

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Markets<\/strong><\/p>\n<\/div>\n\n

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The Bank of England intervened twice this\nweek to increase the scale of its emergency bond-buying programme and announced\nthat it would widen its scope to include index-linked bonds which are linked to\ninflation.  London stocks closed down on Tuesday\nwith the FTSE 100 ending the session down 1.06% at 6,885.23, and\nthe FTSE 250 closed down 1.29% at 16,904.06.<\/p>\n<\/div>\n\n

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Here to help<\/strong><\/p>\n<\/div>\n\n

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Financial\nadvice is key, so please do not hesitate to get in contact with any questions\nor concerns you may have.<\/p>\n<\/div>\n\n

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The value of investments can go down as well\nas up and you may not get back the full amount you invested. The past is not a\nguide to future performance and past performance may not necessarily be\nrepeated.<\/strong><\/strong><\/p>\n<\/div>\n\n

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All\ndetails are correct at time of writing (12 October 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cWe are experiencing a fundamental shift in the global economy\u201d Last week, International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivered a speech in Washington DC entitled \u2018Navigating a more fragile world.\u2019 She referred to the combined impact of a trio of challenges – recovery from the pandemic, the Ukraine invasion and climate issues \u2013 which have […]<\/p>\n","protected":false},"author":12,"featured_media":8520,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,112],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8518"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=8518"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8518\/revisions"}],"predecessor-version":[{"id":8532,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/8518\/revisions\/8532"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/8520"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=8518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=8518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=8518"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=8518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}