Good morning and welcome to Money Minute, where we preview the day's biggest financial stories.
Over in the eurozone, the latest data on industrial production is due to be released. It’s likely to show that December was a grim month for manufacturing in the region. More timely survey data suggests that thing picked up a little in January. But overall, things still look grim for the sector as we head into 2020 – and that’s before taking into account the impact of the coronavirus.
In the US, Federal Reserve head Jerome Powell continues his half-yearly testimony to US politicians. Markets will be most interested in hearing about potential changes to the US central bank’s inflation targeting regime.
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Put simply, the Fed is considering changing its inflation target to allow inflation to rise above 2% for a prolonged period of time, to compensate for the prolonged period of below-target inflation we’ve seen.
In practical terms, that means the Fed would be under no immediate pressure to raise interest rates, even if inflation takes off. Investors would no doubt welcome this change, at least for the time being.
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M&S and Tesco among those warning of a £7bn Budget hitSeventy-nine UK retailers have written to Chancellor Rachel Reeves about possible price rises and job cuts - here is what it means
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How much does it cost to move home under the Labour government?Home-moving costs are rising and could get more expensive once stamp duty thresholds drop in April 2025
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UK wages grow at a record paceThe latest UK wages data will add pressure on the BoE to push interest rates even higher.
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Trapped in a time of zombie governmentIt’s not just companies that are eking out an existence, says Max King. The state is in the twilight zone too.
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America is in deep denial over debtThe downgrade in America’s credit rating was much criticised by the US government, says Alex Rankine. But was it a long time coming?
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UK economy avoids stagnation with surprise growthGross domestic product increased by 0.2% in the second quarter and by 0.5% in June
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Bank of England raises interest rates to 5.25%The Bank has hiked rates from 5% to 5.25%, marking the 14th increase in a row. We explain what it means for savers and homeowners - and whether more rate rises are on the horizon
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UK wage growth hits a record highStubborn inflation fuels wage growth, hitting a 20-year record high. But unemployment jumps
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UK inflation remains at 8.7% ‒ what it means for your moneyInflation was unmoved at 8.7% in the 12 months to May. What does this ‘sticky’ rate of inflation mean for your money?
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VICE bankruptcy: how did it happen?Was the VICE bankruptcy inevitable? We look into how the once multibillion-dollar came crashing down.
