Newsletter Sep 29, 2022

BoE intervenes as IMF criticises UK budget

The BoE intervention followed criticism Tuesday from the IMF, which argued that Britain's budget could increase inequality and worsen inflation.

UK housing market may face perfect storm as mortgage rates rise, house prices drop

A surge in borrowing costs and a likely slowdown in economic growth threaten to trigger a selloff in Britain's housing market with consequences for personal wealth and the broader economy that could resonate for decades.

Ryanair says no hit to UK bookings yet in wake of sterling fall

Ryanair has not seen any impact on bookings in the United Kingdom in the wake of the recent fall in the value of the pound and increase in domestic mortgage rates, but the market is likely to be challenging, a senior executive said.

Britain's market rout stokes contagion fears around the globe

The scale and speed of the sell-off in British assets has jolted world markets, raising concern about contagion as chaos in a major developed economy adds to unease already generated by sharp interest rate rises from the United States and elsewhere.

Bank of England to buy 65 billion pounds of UK bonds to stem rout

The Bank of England stepped into Britain's bond market on Wednesday to stem a market rout, pledging to buy 65 billion pounds ($69.4 billion) of long-dated gilts after a government fiscal statement triggered the biggest sell-off in decades.

Sterling slips back with euro on persistent UK fiscal angst despite BoE bond-buying

Sterling retreated again on Thursday from a sharp bounce against the dollar overnight, after the Bank of England announced unlimited bond purchases to shore up Britain's financial markets battered by the government's radical plans to cut taxes.

Wild UK market swings 'opportunity of a lifetime' for hedge funds

The wild swings seen in British markets provided an "opportunity of a lifetime" to trade currencies and bonds, hedge funds and traders said on Wednesday.

UK companies face biggest monthly surge in borrowing costs for decades

Borrowing costs for UK companies have soared since the British government's mini-budget last week spooked markets, with data showing sterling corporate bonds suffering their biggest monthly selloff since at least the 1990s.

Pound drops more than 1% as Bank of England steps into bond market

Sterling fell more than 1% against the dollar and euro on Wednesday after the Bank of England said it would step in to calm the UK's frenzied bond markets.

EU countries at odds over possible gas price cap

European Union countries were at odds on Wednesday over whether to cap gas prices in the bloc, with France, Belgium and 13 other states stepping up their call for the move opposed by Germany and others.

Oil prices fall amid strong dollar, economic concerns

Oil prices fell in early Asian trade on Thursday as a strong dollar and economic woes outweighed optimism over consumer demand.

Porsche to debut amid market tumult in historic IPO

Porsche AG shares will list on the stock market on Thursday after Volkswagen priced shares at the top end of the announced range, a sign the luxury brand has lured buyers despite market turmoil.

Licence to bill: Bond's Aston Martin sells for nearly â‚¤3 million

Other items on sale include cars as well as notable costumes and accessories linked to the franchise.

Wall Street bounces off lows as UK steps in to calm bonds

Global equities staged a partial comeback on Wednesday -- with Wall Street stocks surging around 2% -- as the Bank of England said it would step in to the bond market in an attempt to dampen investors' fears of contagion across the financial system.