{"id":9806,"date":"2022-12-07T10:33:03","date_gmt":"2022-12-07T10:33:03","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/12\/07\/news-in-review-84\/"},"modified":"2022-12-07T13:01:47","modified_gmt":"2022-12-07T13:01:47","slug":"news-in-review-84","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/12\/07\/news-in-review-84\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u201cEven before the recent increases in mortgage\nrates, affordability was becoming more stretched across the UK\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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UK house prices fell by 1.4% month-on-month in November, according to the latest Nationwide House Price Index released last Thursday, the biggest monthly drop since June 2020. At \u00a3263,788, the non-seasonally adjusted November average price was 4.4% higher on an annual basis, compared to a yearly growth of 7.2% recorded in October. <\/p>\n<\/div>\n\n

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Commenting\non the findings, Nationwide’s Chief Economist Robert Gardner, said, \u201cThe\nfallout from the mini-budget continued to impact the market, with November\nseeing a sharp slowdown in annual house price growth\u2026 While financial market\nconditions have stabilised, interest rates for new mortgages remain elevated\nand the market has lost a significant degree of momentum.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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\u201cEven before the recent increases in\nmortgage rates, affordability was becoming more stretched across the UK\u201d <\/em>he\nadded.<\/p>\n<\/div>\n\n

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CBI update<\/strong><\/strong><\/p>\n<\/div>\n\n

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The Confederation of British Industry (CBI) projected\non Monday that the country\u2019s economy is on course to shrink by 0.4% in 2023, as\npersistently high inflation continues to dampen longer-term growth prospects.\nThis new forecast is a sharp downgrade since the CBI\u2019s last update in June,\nwhen it predicted growth next year of 1.0%.<\/p>\n<\/div>\n\n

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Unemployment\nis expected to peak at 5.0% in late 2023 and early 2024, up from 3.6%\ncurrently, while gross domestic product (GDP) is forecast to return to its pre-pandemic\nlevel only in mid-2024. CBI Director-General Tony Danker warned of \u201ca<\/em> lost decade of growth if action isn’t taken.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

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US\nrate rises to slow<\/strong><\/strong><\/p>\n<\/div>\n\n

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Last\nWednesday, Chair of the Federal Reserve Jerome Powell said in a speech that interest\nrate rises might be eased as early as this month, with a 50-basis point rate hike now\nexpected at the Fed’s December meeting. The previous four meetings have all resulted\nin the Fed increasing its benchmark interest rate by 0.75% to reach the current\ntarget range of 3.75% to 4%, which is the highest level since 2007.<\/p>\n<\/div>\n\n

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In his speech, Mr\nPowell hinted that rates could be held at a high level for longer to guard against\na recession. \u201cIt makes sense to moderate the pace of our rate increases as\nwe approach the level of restraint that will be sufficient to bring inflation\ndown\u201d, <\/em>he said.<\/p>\n<\/div>\n\n

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Price cap on Russian oil causes\nprice spike<\/strong><\/strong><\/p>\n<\/div>\n\n

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Oil\nprices rose on Monday in response to the decision by the G7 group of major\neconomies to implement a price cap of $60 a barrel on Russian oil. The price of\nBrent Crude Oil climbed almost 2% to $87.25 a barrel, as fears grew of global\nsupplies being disrupted in the coming months.<\/p>\n<\/div>\n\n

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Separately,\nOPEC+, a group of the top oil-producing countries, said on Sunday that it would\nstick to its policy of reducing output in an effort to prop up global prices.<\/p>\n<\/div>\n\n

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November sales boost<\/strong><\/strong><\/p>\n<\/div>\n\n

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Total retail sales in the UK jumped by 4.2% in\nNovember compared with the same month a year ago, according to a snapshot from\nthe British Retail Consortium (BRC) released on Tuesday. November\u2019s reading was\nthe highest since January, as retailers enjoyed a boost from Black Friday. Colder\nweather, meanwhile, caused sales of winter coats, hot water bottles and hooded\nblankets to soar.<\/p>\n<\/div>\n\n

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Despite\nthe strong monthly showing, Helen Dickinson, Chief Executive of the BRC, cautioned\nthat \u201csales growth remained far below current inflation, suggesting volumes\ncontinued to be down on last year.\u201d<\/em><\/p>\n<\/div>\n\n

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Further positive sales news had been provided on\nMonday by the Society of Motor Manufacturers and Traders (SMMT), with its\nfinding that Britain\u2019s new car market grew by 23.5% in November, a fourth consecutive\nmonthly rise. A total of 142,889 units registered last month was the best for November\nsince 2019, though overall registrations are still 8.8% below pre-pandemic\nlevels.<\/p>\n<\/div>\n\n

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

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London stocks ended lower on Tuesday as falls in shares of\nUK\u2019s big utility companies was offset by rises in bank shares. The FTSE 100\nclosed down 0.61% at 7,521.39 and the FTSE 250 closed down 1.19% at 19,100.08.<\/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>\n\n

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All\ndetails are correct at time of writing (7 December 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u201cEven before the recent increases in mortgage rates, affordability was becoming more stretched across the UK\u201d UK house prices fell by 1.4% month-on-month in November, according to the latest Nationwide House Price Index released last Thursday, the biggest monthly drop since June 2020. At \u00a3263,788, the non-seasonally adjusted November average price was 4.4% higher on […]<\/p>\n","protected":false},"author":12,"featured_media":9808,"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\/9806"}],"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=9806"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9806\/revisions"}],"predecessor-version":[{"id":9807,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9806\/revisions\/9807"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/9808"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=9806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=9806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=9806"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=9806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}