{"id":9389,"date":"2022-11-09T14:15:15","date_gmt":"2022-11-09T14:15:15","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/11\/09\/news-in-review-80\/"},"modified":"2022-11-09T14:44:21","modified_gmt":"2022-11-09T14:44:21","slug":"news-in-review-80","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/11\/09\/news-in-review-80\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cThe road ahead will be a tough one\u2026 but the\neconomy will recover, and inflation will fall\u201d<\/em><\/strong><\/p>\n<\/div>\n\n

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At the latest meeting of\nthe Bank of England\u2019s Monetary Policy Committee (MPC) concluding on 3 November,\nBank Rate rose by 0.75 percentage points, an eighth consecutive increase and\nthe biggest for 33 years.<\/strong><\/p>\n<\/div>\n\n

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Members of the MPC voted\nby a majority of seven to two to raise Bank Rate to 3%; of the two dissenting\nvoices, one preferred an increase of 0.5 percentage points and the other a\nsmaller 0.25 percentage point rise. Borrowing costs are now at their highest\nsince 2008.<\/p>\n<\/div>\n\n

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After the vote, Andrew\nBailey, Governor of the Bank of England, repeated that the Bank\u2019s primary\nobjective was to bring down inflation, which last month rose at its fastest\nrate in 40 years. He commented, \u201cThe road ahead will be a tough one\u2026 The\nlevel of economic activity in our economy is likely to be flat, and even fall,\nfor some time but the economy will recover, and inflation will fall.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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Indeed, the MPC is forecasting\nthat gross domestic product (GDP) will continue to fall throughout 2023 and\ninto 2024, while unemployment \u2013 currently at its lowest level for 50 years \u2013 is\nset to almost double to 6.5%. Latest projections by the MPC reveal \u2018a very\nchallenging outlook for the UK economy\u2019<\/em>, with recession \u2018for a prolonged\nperiod\u2019. <\/em>The minutes of the next MPC meeting will be published on 15\nDecember 2022.<\/p>\n<\/div>\n\n

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Similar story across the pond<\/strong><\/strong><\/p>\n<\/div>\n\n

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A day earlier, the US Federal Reserve also raised its key interest rate by 0.75%, a fourth consecutive three-quarter point rise. Now at a target range of 3.75% to 4%, the highest level since 2008, the rate hikes seem likely to continue. Indeed, speaking shortly after the meeting, Chairman Jerome Powell signalled that the Fed\u2019s work is far from finished, \u201cWe still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected.\u201d<\/em><\/p>\n<\/div>\n\n

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In the same speech, however, Mr Powell suggested easing\noff on the pace of rises might be possible sooner rather than later, “It\nmay come as soon as the next meeting [in December] or the one after that … No\ndecision has been made” <\/em>he added. <\/p>\n<\/div>\n\n

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COP27 underway in Egypt<\/strong><\/strong><\/p>\n<\/div>\n\n

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As the COP27 summit kicked\noff in Egypt, the\nUnited Nations Secretary General, Ant\u00f3nio\nGuterres, used his opening address to warn that, \u201cWe are on a highway to climate\nhell with our foot still on the accelerator.\u201d<\/em><\/p>\n<\/div>\n\n

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On Monday, world leaders descended on the\nEgyptian city of Sharm El-Sheikh to begin two weeks of negotiations on climate\naction. Prime Minister Rishi Sunak, having U-turned on his decision not to\nattend the conference, spoke about the importance of energy security, \u201cPutin’s\nabhorrent war in Ukraine and rising energy prices across the world are not a\nreason to go slow on climate change\u201d<\/em> he said. \u201cThey are a reason to act\nfaster.\u201d<\/em><\/p>\n<\/div>\n\n

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More stark words came from the Kenyan\nPresident William Ruto, who stressed the need for rapid action, \u201cFurther\ndelay will make us busy spectators as calamity wipes out lives and livelihoods\u201d\n<\/em>he said.President Joe Biden is expected to attend later this week after\nthe US midterm elections.<\/p>\n<\/div>\n\n

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A major talking point of the opening days\nof the summit was the decision to include \u2018loss and damage\u2019 on the agenda.\nAfter negotiations that dragged on until Sunday morning, developing countries finally\ngot their way; the possibility of reparations paid by rich countries for the\nimpacts of climate change will now be officially discussed at COP for the first\ntime.<\/p>\n<\/div>\n\n

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

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Tuesday\u2019s primary focus for markets was on the crucial US midterm\nelections that will determine control of Congress. London stocks closed just above the waterline, with the FTSE 100 ending the session up 0.08%<\/strong> at\n7,306.14 and the FTSE 250 closing ahead 0.75%<\/strong> at\n18,697.89.<\/p>\n<\/div>\n\n

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Wall\nStreet ended the day higher, with investors betting on a political stalemate\nthat could prevent major policy changes. It was the third straight day of gains\non the US stock market, leaving the Dow Jones down less than 10%\nyear-to-date, to close on 33,160.83. The S&P 500\nwas 0.56%<\/strong> firmer\nat 3,828.11.<\/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 (9 November 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cThe road ahead will be a tough one\u2026 but the economy will recover, and inflation will fall\u201d At the latest meeting of the Bank of England\u2019s Monetary Policy Committee (MPC) concluding on 3 November, Bank Rate rose by 0.75 percentage points, an eighth consecutive increase and the biggest for 33 years. Members of the MPC […]<\/p>\n","protected":false},"author":12,"featured_media":9391,"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\/9389"}],"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=9389"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9389\/revisions"}],"predecessor-version":[{"id":9390,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9389\/revisions\/9390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/9391"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=9389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=9389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=9389"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=9389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}