Good morning and welcome to Money Minute, your comprehensive preview of this week’s biggest financial stories.
The biggest event for UK investors next week is the Budget on Wednesday afternoon. The new chancellor, Rishi Sunak, already had a lot on his plate, having been parachuted into the role at the last minute. Now he not only has to lay out the Conservative government’s plans for economic policy for the next few years, but he also has to take into account the impact of the coronavirus, particularly on small and medium-sized businesses.
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Following last week’s dramatic emergency rate cuts by both the Fed and the Canadian central bank, investors also expect the Bank of England to announce some sort of action in co-ordination with the government.
Over in the eurozone, a central bank meeting is scheduled for Thursday. Interest rates in the eurozone are already at rock bottom levels, but investors expect at least some sort of action to be taken, simply because the European Central Bank can’t be seen to be doing nothing while all around are cutting rates. New boss Christine Lagarde was probably hoping she’d have more time to ease into the job before crisis struck again – no such luck.
Elsewhere, all eyes will be on Asia for indications as to how the spread of the virus has impacted on activity over there. South Korea, where the rate of infection appears to be levelling out, releases trade data for the first 10 days of March on Tuesday. Imports and exports slid in February, due to China’s factory shutdowns.
The latest data is unlikely to show a dramatic improvement, and may also give an idea of just how big an impact the virus is having on global trade.
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Average pension pot by region – how do your retirement savings compare?Making sufficient savings for retirement is critical to ensure you can enjoy your later years without too many financial worries, but new data suggests some are saving far more than others. We look at the average pension pot by region.
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Could colour diamonds add a sparkle to your portfolio?Diamonds of various shades never go out of fashion, says Chris Carter
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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 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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Would a food price cap actually work?Analysis The government is discussing plans to cap the prices of essentials. But could this intervention do more harm than good?
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Is my pay keeping up with inflation?Analysis High inflation means take home pay is being eroded in real terms. An online calculator reveals the pay rise you need to match the rising cost of living - and how much worse off you are without it.
