Proactive Investors -
- FTSE 100 firmly in the red, down 60 points
- US central bank signals more rate rises on the way
- Currys falls as pulls dividend, cautious outlook
Bailey stokes 'greedflation' war, some evidence firms overcharging
Andrew Bailey had stoked the fires surrounding so-called ‘greedflation’ warning there is some evidence that retailers are overcharging customers.
In an to the BBC’s Newsround programme, the Bank of England governor said: “If you look at petrol prices, some sellers of petrol have possibly been charging too much for it.”
He said regulators have an important role to play tackling overcharging.
“It helps us with inflation, but it’s just fairer if these things are tackled.”
“It’s important that these steps that can be taken to make things fairer, and to save money for people by doing so, are taken,” he added.
"In the Night Garden" moves on from the Ninky Nonk according to Bloomberg pic.twitter.com/eJQft5Czc6— Simon French (@shjfrench) July 6, 2023
Earlier this week, the UK’s competition regulator said drivers buying fuel at supermarkets last year paid more than they would have done otherwise due to major supermarkets increasing their margins.
In the interview, Bailey reiterated that inflation is “way too high.”
“We have a target that prices should rise by no more than 2%. It is, sadly, above that at the moment, above 8%.”
“I understand it is difficult. People are having to make very difficult choices about what they buy, what they need for their lives.”
Sea of red as blue chips tumble
The FTSE 100 sat firmly in the red at the open Thursday as the US Federal Reserve signalled more interest rates rises were on the way.
At 8.15am, London’s blue chips were down 63.73 points, or 0.9%, at 7,378.37 while the FTSE 250 tumbled 139.55 points, or 0.8%, to 18,253.78.
Minutes from the June’s Federal Open Market Committee meeting showed officials believe further tightening is required to stamp out inflation in the world's largest economy.
"Almost all participants noted that in their economic projections that they judged that additional increases in the target federal funds rate during 2023 would be appropriate," the minutes said.
“The narrative that emerged from the minutes of the June FOMC meeting fell unequivocally on the hawkish side of the spectrum,” said ING’s Francesco Pesole.
“The minutes offered no reason to doubt the Fed will go ahead with a July hike unless data points firmly in the opposite direction on the economic and inflation side.”
Currys fell 6% after it pulled the final dividend and gave a cautious view of economic prospects.
Adjusted annual pre-tax profits came in at the top-end of guidance, despite falling year-on-year, but the electricals retailer said it was “wary optimism about consumer spending power.”
Analysts at Liberum said there were “no surprises” in the results.
“The well-documented Nordics challenges remain, yet self-help is delivering improvements,” the broker felt.
It plans to hold forecasts at current levels.
Recruitment firm Robert Walters PLC eased 2.3% after reporting a 10% fall in net fee income for the second quarter.
Chief Executive Toby Fowlston said: “Candidate confidence and time to hire are not yet showing the anticipated signs of sustained improvement.
But holding firm in a sea of red were shares in Mondi PLC (LON:MNDI) and Smurfit Kappa Group plc which rose 1.0% and 0.6% respectively as JP Morgan upgraded to overweight from neutral.