Friday, 2 August 2024
The Mighty Headlines
Economics: Bank of England cuts interest rates to 5 per cent
Business: Chip-maker Intel cuts 15,000 jobs
Markets: Nikkei falls nearly 6 per cent
Foreign Affairs: China criticises Canada for sailing navy ship through Taiwan Strait
Domestic politics: Robert Jenrick launches Conservative leadership bid
The Mighty Stats
FTSE = 8,174.71 (closed down 1.31 per cent)
S&P500 = opened at 5,376.63 (currently down 2 per cent)
Nasdaq = opened at 16,780.44 (currently down around 2.25 per cent)
Nikkei = 35,909.70 (closed down 5.81 per cent)
CAC40 = 7,251.80 (closed down 1.61 per cent)
£1 = $1.28 / €1.18 / ¥ 189.65
The Mighty Detail
The Bank of England cut interest rates to 5 per cent – the first cut since the start of the Covid-19 pandemic in March 2020 – down from 5.25 per cent last month. Governor Andrew Bailey said that lower inflation had helped but that there was still more work to do.
US chip-maker Intel has said that it plans to cut around 15,000 jobs – around 15 per cent of its work force – as it seeks to make $10 billion in savings in 2025. Intel has struggled to compete with rivals such as Nvidia and take advantage of AI developments.
The Nikkei fell by nearly 6 per cent today – its biggest one day drop since the ‘Black Monday’ crash of 1987. The index fell 2,216 points – 5.8 per cent – to 35,909. The drop was in part prompted by weaker than expected US job data. US unemployment rose to 4.3 per cent from 4.1 per cent and only 114,000 US jobs were created last month versus the 175,000 expected.
China criticised Canada’s decision to sail its navy ship through the Taiwan Strait on 31 July. The Canadian defence ministry called it a “routine transit” to maintain a free, open and inclusive Indo-Pacific region. China, which claims sovereignty, said that the passage had “undermined peace and stability”.
Robert Jenrick launched his bid to become the next leader of the Conservative Party. Jenrick was formerly immigration minister under the previous Conservative government and resigned over concerns the Rwanda asylum plan would not materialise.
Lookahead to tomorrow
Weekend begins! Plus the 77th edition of the Edinburg Fringe Festival with theatre, comedy and music shows. More information here.
Weather tomorrow
Light cloud and a gentle breeze. High of 24°C, low of 13°C. Dry in the morning, chance of rain in the afternoon, probably nice in the evening.
Life coaching quote of the day
“What other people think about you is none of your business.” – Les Brown, motivational speaker
Meaning: Don’t focus on what you think other people are thinking about you. People generally spend more time thinking about themselves than about you. Live your life in a way that matters and makes sense to you.
That’s all for today, folks. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.
Adios!
The Mighty Memo team
hello@mightymemo.co.uk