We start the day with a stark reminder of how the cost of living crisis is eating away at household budgets.
Real non-bonus wages fell 3.4 percent in April, the biggest fall since records began in 2001, according to the latest ONS figures.
In the three months to April, they fell 2.2 percent, the biggest drop in a decade. While bonuses help cushion some of the damage, not all workers benefit.
The figures show that wage increases are not keeping pace with rising prices, with total incomes rising by less than half the rate of inflation.
The numbers highlight the challenge facing the Bank of England ahead of this week’s interest rate decision as the MPC tries to balance rising inflation with the risk of a recession.
5 things to start the day off right
1) Booming housing market creates 36,000 millionaires in one year The UK now has 609,000 high net worth individuals
2) Shell plans to expand amidst the chaos in the energy market The FTSE 100 company plans to invest £20bn to £25bn in the UK
3) How the Bank of England got it wrong again as Britain slipped into recession Britain’s recovery from the pandemic has been derailed by the cost of living crisis
4) Binance “Pauses” Bitcoin Withdrawals Amid Market Drop Markets in chaos as Bitcoin falls to lowest since December 2020
5) Tesco accused of ripping off Lidl logo to ‘ride on the discounter’s coattails’ The grocer hits back that the yellow circle brand is “an invention of Lidl’s legal imagination”.
what happened overnight
Stock markets tumbled again on Tuesday to continue a global flight fueled by recession fears, with the Federal Reserve preparing to hike interest rates as inflation shows no signs of slowing.
That has fueled fears that the world’s top economy is heading for a recession, and on Monday Wall Street plunged the broader S&P 500 into a bear market after falling more than 20 percent from its recent high.
And sales in Asia continued, with Sydney slipping five percent at one point as it reopened after a bank holiday weekend to catch up on Monday’s drama, while Tokyo fell about two percent and Wellington fell more than three percent.
Hong Kong, Shanghai, Seoul, Singapore, Taipei and Manila were also deep in the red.
- Company: Ashtead Group, First Group, Oxford Instruments, Paragon Banking Group (annual results); Crest Nicholson, DiscoverIE Group, Ferguson (split times); bellway (trade statement)
- Business: unemployment rate (UNITED KINGDOM)Change in number of applicants (UNITED KINGDOM)average income (UNITED KINGDOM)inflation (eng)economic mood (EU)producer price index (US)
https://www.telegraph.co.uk/business/2022/06/14/ftse-100-markets-live-news-pound-bitcoin-inflation-eu/ More travel chaos looms as thousands of Network Rail staff threaten new strike