{"id":9503,"date":"2022-11-16T15:56:35","date_gmt":"2022-11-16T15:56:35","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/11\/16\/news-in-review-81\/"},"modified":"2022-11-16T16:32:50","modified_gmt":"2022-11-16T16:32:50","slug":"news-in-review-81","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/11\/16\/news-in-review-81\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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Last week\u2019s release by the Office for National Statistics (ONS) of its\nquarterly gross domestic product (GDP) estimate for July to September painted a\npicture of a shrinking UK economy.<\/strong><\/p>\n<\/div>\n\n

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GDP fell by 0.2% in the third quarter, slightly less than predicted by\nsome City economists, but enough to push the UK a step closer to recession. The\nBank of England has forecast a \u2018prolonged\u2019 <\/em>downturn, potentially the\nlongest on record.<\/p>\n<\/div>\n\n

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The Q3 economy slowed in output terms, with the services, production and\nconstruction industries all stalling. Notably, production fell by 1.5%, with\nall 13 sub-sectors of the manufacturing sector negative for the quarter.<\/p>\n<\/div>\n\n

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Meanwhile, real household expenditure fell by 0.5%. High inflation has caused many households to\ncut back on spending, which in turn creates a drag on the economy.<\/p>\n<\/div>\n\n

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Chancellor Jeremy Hunt said, \u201cI\nam under no illusion that there is a tough road ahead \u2013 one which will require\nextremely difficult decisions to restore confidence and economic stability\u2026 What\nwe need is a plan that shows how we are going to get through this difficult\nperiod.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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Autumn Statement \u2013 what\u2019s in store?<\/strong><\/p>\n<\/div>\n\n

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In response to these difficult\neconomic conditions, the government is expected to announce around \u00a335bn of\nspending cuts and \u00a320bn of tax rises in the Autumn Statement, due to be\ndelivered on Thursday.<\/p>\n<\/div>\n\n

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Speaking last Sunday, Mr Hunt stressed\nthat, \u201cI’ve been explicit that taxes are going to go up.\u201d <\/em>Analysts\npredict that the extra tax revenue will be generated by freezing tax\nthresholds.<\/p>\n<\/div>\n\n

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A decision on pensions is expected\ntoo. New Prime Minister Rishi Sunak has not yet confirmed whether the Triple Lock,\nwhich ensures the State Pension rises each year in line with the highest of\neither inflation, average earnings or 2.5%, will remain in place.<\/p>\n<\/div>\n\n

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The NHS, schools and police could all be affected by\nspending cuts, with budgets allocated in 2021 expected to be frozen until\n2025.<\/p>\n<\/div>\n\n

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US midterms<\/strong><\/p>\n<\/div>\n\n

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Democrats have kept control of the Senate in a\nbetter-than-anticipated midterms performance for the ruling party. The Senate\nsuccess is a significant moment for Joe Biden\u2019s presidency, which will put a\nspring in his step going into the second half of his term. The Republicans,\nmeanwhile, are on the verge of securing the House of Representatives.<\/p>\n<\/div>\n\n

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COP27 enters its final days<\/strong><\/p>\n<\/div>\n\n

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The UN\u2019s annual climate summit continued\nin Egypt, with more tough talking from politicians and stakeholders. Fresh from\nhis election success, Mr Biden delivered a speech in which he said, \u201cThe\nclimate crisis is about human security, economic security, environmental\nsecurity, national security and the very life of the planet.\u201d<\/em><\/p>\n<\/div>\n\n

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The key outcomes of the conference\nremain to be agreed, however, as the two-week event enters its final days.\nPerhaps most importantly, discussions are ongoing about watering down the\ntarget of limiting the average global temperature rise to 1.5 degrees Celsius.\nThis is the level, according to climate scientists, above which the worst\nconsequences of climate change will be felt.<\/p>\n<\/div>\n\n

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Employment data<\/strong><\/p>\n<\/div>\n\n

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The UK unemployment rate rose\nslightly to 3.6% in the three months to September, Office for National\nStatistics data revealed on Tuesday. The Bank of England has already warned\nthat unemployment will nearly double by 2025 as the UK enters recession.<\/p>\n<\/div>\n\n

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Wages rose by 5.7% in the year to\nSeptember, the fastest rate (excluding the pandemic) in more than 20 years. Adjusted\nfor rising prices, however, the picture looks less rosy, with real wages falling\nby 2.7%.<\/p>\n<\/div>\n\n

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London stock market loses top spot <\/strong><\/strong><\/p>\n<\/div>\n\n

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London has lost its crown as Europe\u2019s biggest stock\nmarket to Paris as economic growth concerns weigh on UK assets. Paris has taken\nthe top spot after the combined market capitalisation of its major share\nexchanges overtook those in the UK capital. According to data from Bloomberg the\ncombined value of British shares is now around\n$2.821trn (\u00a32.3trn), while France’s are worth around $2.823trn.<\/p>\n<\/div>\n\n

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This\nmarks a huge reversal of fortunes for the London Stock Exchange, which was\nworth about $1.4trn more than its French rival back in 2016.<\/p>\n<\/div>\n\n

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

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Financial advice is key, so\nplease do not hesitate to get in contact with any questions or concerns you may\nhave.<\/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>","protected":false},"excerpt":{"rendered":"

Last week\u2019s release by the Office for National Statistics (ONS) of its quarterly gross domestic product (GDP) estimate for July to September painted a picture of a shrinking UK economy. GDP fell by 0.2% in the third quarter, slightly less than predicted by some City economists, but enough to push the UK a step closer […]<\/p>\n","protected":false},"author":12,"featured_media":178693,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32],"tags":[],"hd_content_source":[116],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9503"}],"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=9503"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9503\/revisions"}],"predecessor-version":[{"id":9504,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9503\/revisions\/9504"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=9503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=9503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=9503"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=9503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}