Thursday, 5 December 2024
The Mighty Headlines
Economics: OECD says UK growth will improve but pessimistic on inflation
Business: Debenhams returns to profit
Markets: London stock market shrinks at fastest rate in over 10 years
Foreign Affairs: Russian ship fires at German military helicopter
Security and intelligence: US and Russia clash over Syria at UN Security Council
Domestic politics: Scottish Government ends two-child benefit cap
The Mighty Stats
FTSE = 8,335.81 (down 0.28 per cent at Wednesday close)
S&P500 = 6,086.49 (up 0.61 per cent at Wednesday close)
Nasdaq = 19,735.12 (up 1.3 per cent at Wednesday close)
CAC40 = 7,303.28 (up 0.66 per cent at Wednesday close)
£1 = $1.27 / €1.21
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*France update: French MPs voted to topple the French Government by 331 votes yesterday evening. The French PM will present the resignation of his Government at 10.00am CET. President Macron is due to address the nation at 8.00pm CET. No party in the French Parliament has a majority and fresh elections cannot be held until July 2025.
The Mighty Detail
Economics: The OECD has said that the rate of growth in the UK economy would increase to 1.7 per cent next year. This is up from the 1.1 per cent it projected in September. The economy would then slow again to 1.3 per cent in 2026 and inflation would remain above the 2 per cent target for two years.
Business: Debenhams has returned to profit after it was brought out of administration by Boohoo in 2021. In the year to 29 February 2024, it announced pre-tax profits of £4.5 million compared to a loss of £732,000 the year before. Revenue has also fallen, however, from £87.1 million to £39.7 million. The store now trades online only.
Markets: The London stock market is shrinking at its fastest rate in over a decade. Around 45 companies have come off the London market this year because of mergers and acquisitions as private equity firms in particular look for bargain deals. The number of companies delisted from the market is up 10 per cent compared to 2023.
Foreign Affairs: A Russian ship in the Baltic Sea fired signalling ammunition at a German military helicopter yesterday. The news was announced by Germany’s Foreign Minister, Annalena Baerbock, but she did not provide further details. Signalling ammunition is usually only used in emergencies. Baerbock separately announced that the surveillance of pipelines and data cables in the Baltic Sea would increase following threats from Russia.
Security and intelligence: At a meeting of the UN Security Council in New York, the United States and Russia clashed on whether fighting should continue in Syria. Anti-government forces took hold of the important north Syrian city of Aleppo last Wednesday. Russia said the fighting should continue while the US said the airstrikes, some conducted by Russia, should end.
Domestic politics: The Scottish Government published its Budget yesterday and said that it would abolish the two-child benefit cap in Scotland. The cap currently means that parents cannot claim benefits for a third child. It also announced that it would end the freeze on council tax rates but warned councils against large increases in rates.
The Mighty Calendar
What’s happening today?
Organisation for Security and Cooperation in Europe meeting, Malta (ends Friday)
Sir Keir Starmer gives speech on new government targets
Cabinet Office Questions in UK Parliament
Singapore, Eurozone retail sales data (October)
Switzerland unemployment data (November)
Germany factory orders (November)
Spain, France industrial production data (October)
UK, Italy, Germany, France, Eurozone construction data (November)
United States, Canada trade data (October)
United States unemployment data (weekly)
Japan household spending data (October)
Company earnings results: AJ Bell, DS Smith, DocuSign, Watches of Switzerland
Lookahead to tomorrow
UK house price data (November)
Germany, France trade data (October)
Germany industrial production data (October)
Italy retail sales data (October)
Eurozone employment data (Q3 2024)
Eurozone GDP data (Q3 2024)
United States, Canada average earnings data (November)
The Mighty Finale
🌤️Weather today
Patchy rain across much of England. High of 14oC and low of 7oC. Drizzle in Belfast and light rain in Edinburgh from mid-afternoon.
✏️Life coaching quote of the day
“No matter how far away from yourself you may have strayed, there is always a path back. You already know who you are and how to fulfil your destiny.” – Oprah Winfrey
Mighty takeaway: Everyone has the opportunity to make changes at any stage of their life.
That’s about it for today’s edition! See you tomorrow morning.
Adios!
The Mighty Memo team