Latest news with #RobWood
Times
6 days ago
- Business
- Times
Business live: Barclays fined £42m for money-laundering failures
Ruth Gregory, Capital Economics: 'The unexpected rise in CPI inflation . . . may not prevent the Bank of England from cutting interest rates by 25 basis points in August. But it will add to the pressure on the Bank to continue to cut rates at a gradual pace.' Rob Wood, Pantheon Macroeconomics: 'Where does this leave the MPC? Inflation 150bp above target and likely to stay there for the rest of the year is hardly a green light for another rate cut. Traditionally, the MPC would look through headline inflation overshoots driven by government policy as well as energy and food prices, but we doubt they have that luxury now.' Matt Swannell, EY Item Club: 'There doesn't seem to be enough in these inflation numbers to derail an interest rate cut in August and we expect the MPC's established cut-hold tempo to continue at subsequent meetings.' The financial watchdog has fined banking giant Barclays £42 million over its 'poor handling' of financial crime risks. The Financial Conduct Authority said the fines related to separate failings linked to the WealthTek and Stunt & Co businesses. It fined Barclays Bank £39.3 million for 'failing to adequately manage money laundering risks' related to providing banking services to Stunt & Co, the firm run by the socialite James Stunt. Meanwhile, Barclays Bank UK has been fined £3.1 million after it failed to check it had enough information to understand the money laundering risk before opening a client money account for the now-collapsed wealth management firm WealthTek, the FCA said. Gilt yields have edged higher across the board after the surprise rise in inflation to 3.6 per cent in June dampened expectations of a rate cut next month. The yield on the benchmark 10-year UK government bond rose 2 basis points ot 4.65 per cent. The FTSE 100 has opened 4.5 point higher at 8,942,87, with Rio Tinto the biggest riser after its second quarter production update. The index remain below is high of 8,998.06 hit earlier this week. The pound has strengthened slightly against the dollar to $1.3401. Rio Tinto: The FTSE 100 miner reported its strongest quarter of iron production since 2018, a day after promoting Simon Trott, head of its iron ore operations, to chief executive. Production at its Pilbara mines in western Australia rose 5 per cent to 83.7 million tonnes in the second quarter, although shipments fell short of analysts' expectations, disrupted by extreme weather. In other corporate news: AstraZeneca: The pharmaceutical company said anselamimab, an experimental drug, did not meet the main goal of a late-stage study for the treatment of AL amyloidosis, a rare condition that causes a buildup of protein deposits in the body. Antofagasta: The Chilean copper miner said second-quarter production rose 3.5 per cent to almost 315,000 tonnes. Full-year guidance was reiterated. Workspace: The flexible office space provider said occupancy had fallen by 0.3 per cent in the second quarter to 82.2 per cent, with more 'large vacations' to come during the current three-month trading period. The rate of UK inflation rose to a 16-month high of 3.6 per cent in June, official figures showed. The data from the Office for National Statistics is above economists' expectations for the rate to remain unchanged, and makes an interest rate cut in August less likely. Richard Heys, acting chief economist at the ONS, said: 'Inflation ticked up in June, driven mainly by motor fuel prices which fell only sligthly, compared with a much larger decrease at this time last year. 'Food price inflation has increased for the third consecutive month to its highest annual rates since February of last year.' The Bank of England expects inflation, which has accelerated since April due to higher energy prices, to peak at 3.7 per cent before falling back to its 2 per cent target. The monetary policy committee has cut interest rates twice this year, from 4.75 per cent to 4.25 per cent. Markets had been betting on another quarter-point cut next month. • Read in full: UK inflation rises to 3.6 per cent in blow for Reeves Rachel Reeves has accused over-cautious regulators of acting like 'a boot on the neck of businesses' as she announced plans to get ordinary British savers investing in shares. Addressing 350 City bosses at the annual Mansion House dinner, the chancellor set out a string of reforms designed to allow financial firms to grow faster and urged regulators 'not to bend to the temptation of excessive caution'. • Read in full: Reeves tells regulators to loosen up to boost share investment President Trump has placed a 19 per cent tax on goods imported into the United States from Indonesia under a new agreement with the country and said more deals were in the works. The pact with a minor trading partner is among the few ahead of an August 1 deadline for tariffs on most US imports, despite his team touting an effort to bring home '90 deals in 90 days'. So far, framework agreements have been reached with the UK and Vietnam, and an interim deal has been struck with China to forestall the steepest of Trump's tariffs while negotiations continue between Washington and Beijing. Trump said talks with India were moving in a similar direction. Meanwhile, while the European Union is preparing retaliatory measures should talks between Washington and its top trading partner fail.
South Wales Guardian
18-06-2025
- Business
- South Wales Guardian
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
North Wales Chronicle
18-06-2025
- Business
- North Wales Chronicle
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
Powys County Times
18-06-2025
- Business
- Powys County Times
UK inflation to edge higher if oil prices push up energy costs, experts warn
UK inflation was higher than expected last month as economists raised concerns that escalating conflict in the Middle East could push up the cost of living. Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month.
Glasgow Times
18-06-2025
- Business
- Glasgow Times
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
