Monday, 12 August 2024

Monday, 12th August - www.mightymemo.co.uk

 

The Mighty Headlines

 

  • Economics: US Fed official says inflation still too high

  • Business: Hargreaves Lansdown to be bought for £5.4 billion

  • Markets: Value of sterling falls for fourth week

  • Foreign Affairs: Philippines and China military incident

  • Security and intelligence: US Navy says Houthis operations degraded

  • Domestic politics: Junior doctors set to vote on 22 per cent pay deal

 

The Mighty Stats

 

  • FTSE = 8,196.10 (currently up 0.35 per cent)

  • S&P500 = 5,344.16 (up 0.47 per cent at Friday close)

  • Nasdaq = 16,745.30 (up 0.51 per cent at Friday close)

  • Nikkei = 35,025.00 (up 0.56 per cent at Monday close)

  • CAC40 = 2,296.71 (up 0.31 per cent at Friday close)

 

£1 = $1.28 / €1.17 / ¥ 187.95

 

The Mighty Detail

 

Economics: A US Federal Reserve official has said that US inflation is still too high. Federal Reserve board member, Michelle Bowman, welcomed the fall in inflation earlier this year but said that inflation was “uncomfortably above” the 2 per cent goal. Speaking on Saturday, Bowman also advised caution in lowering interest rates too soon saying that “we need to be patient”.

 

Business: Hargreaves Lansdown is set to be bought for £5.4 billion by a group of private equity investors. CVC Partners, Nordic Capital and Platinum Ivy – owned by the Abu Dhabi Investment Authority – made the bid which will now be put to shareholders. Hargreaves Lansdown has around 1.8 million customers and was founded by Peter Hargreaves and Stephen Lansdown in 1981. The pair own 26 per cent of shares between them.

 

Markets: The value of sterling has fallen for a fourth consecutive week. This is the longest period of decline since September 2023. Sterling closed at $1.27 and at €1.16 on Friday. On 12 July, sterling was at $1.29 and €1.19 which means it has declined 1.7 per cent against the dollar and 1.88 per cent against the euro in four weeks.

 

Foreign Affairs: In a military incident, the Philippines and Chinese governments have accused each other’s air forces of obstructive behaviour in the South China Sea. The Philippines government claims that two Chinese military aircraft dropped flares in front of a Philippines air force plane on Thursday over the Scarborough Shoal in the South China Sea. China accused the Philippines of illegally entering its airspace. Both countries claim sovereignty of the Scarborough Shoal.

 

Security and Intelligence: The US Navy has said that it has degraded the Houthi’s capabilities in the Red Sea but admitted there was still work to be done to secure the region. Speaking last week, Commander of the US Navy 5th Fleet, Vice Admiral George Wikoff, said that “we have certainly degraded their capability. However, have we stopped them? No.” He added that “we have seen some stabilisation but don’t get me wrong it’s not an acceptable solution.”

 

Domestic: Junior doctors are to vote on a 22 per cent pay deal between 19 August and 15 September. The agreement was reached between the UK government and the British Medical Association (BMA) union. The pay offer, which the BMA is recommending to its members, is backdated to 2023/24 and continues into 2024/25.

 

What’s happening today?

 

Germany WPI inflation data – wholesale goods inflation

Japan PPI inflation data – corporate goods inflation

OPEC monthly report – issues affecting world oil market

Mexico consumer confidence index (July)

Canada building permits data (June)     

United States federal balance data (July) – difference in gov.’s income and expenditure

Australia wage price index data (Q2 2024)

 

Lookahead to tomorrow

 

UK average earnings data (June)

UK unemployment rate (June)

Spain CPI inflation data (July)

US PPI inflation data (July)

New Zealand interest rate decision

 

Weather today

 

Summer scorcher in London. High of 33°C and low of 16°C. Slightly cooler in Belfast and Edinburgh but just as sunny.

 

Life coaching quote of the day

 

“Event + Response = Outcome” – Jack Canfield, bestselling author and life coach

 

Mighty takeaway: You choose to respond to events in your life in a certain way but people react in different ways to the same event. Why not choose to respond in a way that makes you happy, empowers you and gets you closer to your goals and the person you want to be? The choice is yours.

 

That’s all for today. 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

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Friday, 9 August 2024