Good morning.
There is some much needed good news this morning as UK inflation edged down slightly in August.
The consumer price index fell to 9.9% last month, according to the ONS. That’s down from July’s 10.1%, though still not far from a 40-year high.
The figure will provide some relief to the Bank of England, which will announce its interest rate decision next week as it tackles stubbornly high inflation.
Rising prices still remain embedded in the economy, although Prime Minister Liz Truss’ support for energy bills could provide further relief later in the year.
5 things to start the day
1) Unemployment is lowest since 1974 as NHS backlog prompts ‘alarming’ exodus – sharp rise in long-term illness pushes unemployment to lowest level since 1974 as the labor market shrinks
2) New York Times Staff Refuses to Return to Office: More than 1,200 Staff Members Revolt Against Paper
3) Hawksmoor criticizes pressure to close on Queen Elizabeth II’s funeral: A host of businesses announce they are closing as a mark of respect
4) Port strikes deal another blow to fragile UK supply chains: Workers at two of the UK’s biggest ports will take up to two weeks off work later this month over a pay dispute
5) Deloitte plans to hire 1,000 staff outside London: Big Four firm joins accountancy networks expanding beyond capital
What happened during the night
Asian stocks fell, the dollar held firm and the U.S. yield curve inverted deeply on Wednesday as a U.S. inflation report dashed hopes of a peak in inflation and boosted the bets that interest rates will have to rise and for longer.
Wall Street saw its sharpest decline in two years, the safe-haven dollar posted its biggest jump since the start of 2020 and two-year Treasury yields jumped to a 15-year high.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3 percent in early Asian trade on Wednesday. Resource-heavy Australia fell 2.8%, while Japan’s Nikkei fell 2.7%.
Both S&P 500 futures and Nasdaq futures rose 0.1% after a sharp selloff. The Dow Jones Industrial Average fell 3.94%, the S&P 500 lost 4.2% and the Nasdaq Composite fell 5.16%.
It arrives today
Company: Dunelm, Redrow (full year), Tullow Oil (interim)
Economy: Consumer Price Index (UK), Producer Price Index (UK, US), Retail Price Index (UK), Industrial Production (EU)