Welcome to Taking Stock on Wednesday 20th 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:
CPI data should halt further BoE interest rises after tomorrow - housebuilders are rallying. Bonds are rallying and yields dropping.
UK Inflation Data CPI Year on Year to August:
Actual: 6.7%
Forecast: 7.0%
Previous: 6.8%
CPI Month on Month to August:
Actual: 0.3%
Forecast: 0.7%
Previous: -0.4%
Core CPI Year on Year to August:
Actual: 6.2%
Forecast: 6.8%
Previous: 6.9%
Core CPI Month on Month to August:
Actual: 0.1%
Forecast: 0.7%
Previous: 0.3%
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Inflation fell unexpectedly in August as falling food inflation helped offset rising energy costs, official data out today shows.
According to figures from the Office for National Statistics (ONS) the consumer price index (CPI) came in at 6.7 per cent in August, down marginally from 6.8 per cent in July and lower than the roughly seven per cent expected by most economists.
Service inflation has been identified as a key measure to watch by rate-setters at the Bank of England, as it indicates inflationary persistence. It fell to 6.8 per cent from 7.4 per cent in July.
The surprise fall may increase the chance that rates are left on hold when the Bank of England meets tomorrow to set interest rates. Markets had been almost certain that rates would be left on hold.
Rishi Sunak looks set to weaken key climate pledges in a move that has drawn heavy criticism from Tory MPs and environmental groups.
The plans could include delaying a ban on the sales of new petrol and diesel cars from 2030 to 2035.
The news has sparked anger among the car industry, opposition MPs and some Conservatives.
Labour has said they would reinstate any car 2030 ban, if elected.
The prime minister said he remains committed to the net zero target by 2050 but will achieve it "in a better, more proportionate way".
The car industry has reacted angrily to the news on petrol and diesel cars.
Ford's UK chair Lisa Brankin said: "Our business needs three things from the UK government, ambition, commitment, and consistency... a relaxation of 2030 would undermine all three."
Mike Hawes, head of the Society of Motor Manufacturers and Traders, said the potential delay to banning the sale of new petrol and diesel cars was "a bit of a concern".
"The view of the industry is we are on track for ending fossil fuels vehicles - it is not for turning back and the UK should be leading it both as an industry and a market."
Forget LA – it’s British film studios that are in demand
Like it or loathe it, the Barbie movie has been the cinematic blockbuster of the year, taking more than $1.38bn (£1.1bn) at the box office so far.
The film, made with a reported budget of $145m, was produced by the US entertainment giant Warner Bros. But much of it was actually shot in the UK.
Barbie's pink paradise, Barbieland, was designed to look like a toytown California. But the set was built at Warner Bros studios in Leavesden, Hertfordshire.
The movie is one of a growing number of film and high-end TV projects to be wholly or partially produced in this country.
According to the British Film Institute (BFI), spending on such productions reached a record £6.27bn last year, with most of that money coming from overseas.
The impact of strikes by actors and screenwriters in the US, which has put a number of UK-based projects on hold, means that figure is unlikely to be beaten in 2023. But the longer term outlook remains positive.