Proactive Investors - Consumer confidence picks up in August - GfK
Better news on consumer confidence with is showing “renewed optimism" as inflation starts to ease, according to a new survey.
GfK's closely-watched consumer confidence Index ticked up five points in August, with all measures reversing the drop seen in July, although it remains firmly in negative territory at minus 25.
Joe Staton, client strategy director at GfK, said: "Although the headline figure remains strongly negative at minus 25, hopes for our personal financial situation for the coming year are heading back towards positive territory, a metric that is key to indicating the future financial position of households.
"This renewed optimism can also be seen in the similar turnaround for our view on the general economic outlook for the next 12 months, and the eight-point advance in major purchase intentions is potentially better news for retailers as we move into autumn.
Confidence in the general economic situation for the next 12 months improved by three points to minus 30 - 30 points better than last August - against a backdrop of falling core inflation, higher interest rates and rising average weekly earnings, GfK said.
The forecast for personal finances over the coming year increased four points to minus three – 28 points higher than this time last year.
Energy price cap to fall to £1,923 - Ofgem
Ofgem has announced the latest energy price cap for households in Great Britain and the magic number is to fall to £1,923 a year in a typical household, it has said.
The cap, which does not apply to Northern Ireland, was set at £2,074 for July to September.
The energy #PriceCap will change on 1 Oct 2023If you pay by direct debit it's £1,923 - pre-pay is £1,949
It's based on typical use of an average home on a supplier’s standard default tariff
It's a cap on energy unit price, not a cap on total bills
➡ https://t.co/E7kjQqdAUu pic.twitter.com/1lclX8TqRf
— Ofgem (@ofgem) August 25, 2023
Ofgem said the change will bring the average dual-fuel energy bill below £2,000 a year for the first time since April 2022, saving households an average of £151 on the previous quarter.
The drop, the lowest level since October 2021, reflects further falls in wholesale energy prices, as the market stabilises and suppliers return to a healthier financial position after four years of loss making, Ofgem said.
CMC Markets reports fall in trading revenue in "challenging" environment
Kicking off Friday with news from CMC Markets PLC which reported subdued market conditions have continued through August in what it called a “challenging” environment.
The online trading and platform technology group said in August trading and investing net revenues trended 20% lower year-on-year with “markedly lower monetisation of client trading activity due to a higher proportion of lower margin institutional volume.”
As a result, the FTSE 250-listed firm expects full-year net operating income will be between £250 and £280 million.
Core KPIs including client money, assets under administration, and active clients across both the trading and investing businesses remain robust with no material change seen through recent weeks, the firm said.
Cost expectations, excluding variable remuneration, are also unchanged at £240 million.
Interim results for the six months to September 30 are due to be released on November 16, 2023.
FTSE seen subdued ahead of Jackson Hole
The FTSE 100 is expected to start make steady progress Friday ahead of Federal Reserve chair Jerome Powell’s speech to the Jackson Hole economic symposium in Wyoming.
Spread betting firms are calling London’s lead index up by around 14 points after closing up 13.10 points, or 0.2% at 7,333.63 on Thursday.
"As we already know from recent comments from various Fed officials it is clear the Fed believes the fight against inflation is far from over, and in that context it's unlikely he will deliver any dovish surprises," CMC's Michael Hewson predicted.
Ahead of Powell’s speech Boston Fed president Susan Collins said more rate increases may be needed to bring inflation down to the central bank’s 2% target.
"I am not yet seeing the slowing that I think is going to be part of what we need for that sustainable trajectory to get back to 2% [inflation] in a reasonable amount of time," Boston Fed President Susan Collins told the Financial Times, later adding that "that resilience really does suggest we may have more to do".
It’s looking like a quiet company news day in London but we’ll keep you updated, as always, on all the major developments.