Welcome to Taking Stock on Wednesday 13th September 2023
Taking Stock: Is a look at today's top business news & investment views plus we cover the winners, losers, the most read company news & the most followed. Today this includes:
SUBJECT
A recession is looming but this is not a bad thing for the markets as this is want the Bank of England wants. A recession would mean a drop in inflation and therefore less need to raise interest rate further.
VOX CONTENT
MOST FOLLOWED
MOST READ RNS
IOG PLC - Operational & Corporate Update #IOG
Poolbeg Pharma - Interim results for the six months to 30 June 2023
RISERS
FALLERS
T42 IOT Tracking Sol - Notice of Interim Results and Business Update
Belluscura PLC - Half-year Report
Made Tech Group - Audited Final Results 2023
TOP BUSINESS STORIES
Strikes and wet weather cause UK economy to shrink
The UK economy shrank more than expected in July, driven by strike action by NHS workers and teachers, according to official figures.
Wet weather also hit the construction and retail industries, the Office for National Statistics (ONS) said, causing the economy to contract by 0.5%.
The figures were worse than analysts had predicted and continue a trend of weak economic growth in the UK.
Paul Dales, chief UK economist at forecaster Capital Economics, suggested that July's economic figures could mean a "mild recession" has begun. but added he expected the Bank of England to raise interest rates a final time from 5.25% to 5.5%.
Investors call 'peak pessimism' for beaten-up UK stocks
Long-term gloom about Britain's economy appears to be lifting and some big investors reckon the end of extreme pessimism is near, with gains ahead for UK-focused businesses and the more international but long-shunned FTSE 100.
After years of outflows and big companies such as materials group CRH moving stock listings overseas, the UK's FTSE All Share index (.FTAS) is valued at around 2.28 trillion pounds ($2.84 trillion). That's roughly the same as a single U.S. stock, Apple (AAPL.O), while British companies are trading at around a record discount to global equities.
"It feels like we've passed the peak of pessimism about the UK," said Daniel Lockyer, senior fund manager at 7 billion-pound investment and advice group Hawksmoor Investment Management, which increased its exposure to UK companies in August.
"We don't necessarily need to see a huge bout of positive news, but the trend of negativity is slowing and the key to making money in any market is to get in at the bottom and capture the start of a turnaround."