Tuesday, 13 August 2024

Tuesday, 13th August - www.mightymemo.co.uk

The Mighty Headlines

• Economics: Disposable income increases in Europe

• Business: India’s Bharti to buy 24.5 per cent of British Telecom

• Markets: Foreign investors take money out of China

• Foreign Affairs: US in secret talks for Venezuela’s Maduro to leave

• Security and intelligence: UK, France and Germany issue joint statement on Iran

• Domestic politics: Starmer cancels holiday plans

The Mighty Stats

• FTSE = 8,238.22 (currently up 0.34 per cent)

• S&P500 = 5,344.39 (up 0.23 per cent at Monday close)

• Nasdaq = 16,780.61 (up 0.21 per cent at Monday close)

• Nikkei = 36,232.51 (up 3.45 per cent at Tuesday close)

• CAC40 = 7,250.67 (down 0.26 per cent at Monday close)

£1 = $1.28 / €1.17/ ¥189.38

The Mighty Detail

Economics: Disposable income in most European countries increases in the three months of 2024. According to the OECD, Poland saw the largest increase at 10.2 per cent, followed by Portugal at 6.7 per cent and Italy at 3.4 per cent. Greece saw the largest decline in disposable income with a 1.9 per cent reduction.

Business: The Indian conglomerate, Bharti Enterprises, has bought a 24.5 per cent in British Telecom from France’s Altice. The deal is valued at around £4 billion and comes after Altice struggles with £60 billion of debt.

Markets: Investors took $15 billion of capital out of China in the three months to June. This represents only the second time on record that China’s direct investment liabilities – in effect the capital traders have invested in China – has turned negative.

Foreign Affairs: The Wall Street Journal is reporting that the US is in secret talks to persuade the President of Venezuela, Nicolas Maduro, to leave power. Maduro is reportedly being offered amnesty from US prosecution in exchange for leaving office. In 2020, the US offered a bounty of $15 million for information that could lead to Maduro’s arrest on charges of drug trafficking. 

Security and Intelligence: The UK, France and Germany issued a joint statement yesterday calling on Iran not to escalate tensions in the Middle East. This comes after Iran vowed retaliation for the assassination of Hamas’s top political leader, Ismail Haniyeh, on 31st July. The US has ordered the USS Abraham Lincoln aircraft carrier to quicken its arrival in the region.

Domestic political: The Prime Minister has cancelled his holiday plans. This comes as the government continues to deal with the risk of riots in England and Northern Ireland. There have been 975 arrests and 546 charges so far in relation to the riots.

What’s happening today?

UK average earnings data (June)

UK unemployment rate (June)

Spain CPI inflation data (July)

US PPI inflation data (July)

New Zealand interest rate decision

Lookahead to tomorrow

UK CPI inflation data (July)

France CPI inflation data (July)

US CPI inflation data (July)

Eurozone employment data (Q2 2024)

Eurozone industrial production data (Q2 2024)

China unemployment rate (July)

Weather today

Slightly cooler than yesterday in London. High of 27°C and low of 16°C. Dry all day. Slightly cooler and light rain in Belfast and Edinburgh.

Life coaching quote of the day

“You are what you think about.” – Earl Nightingale, speaker and writer

Mighty takeaway: Everyone has a story that they tell to themselves about themselves. You have the power to change that story and change the way you lead your life at any point you decide.

That’s all for today. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Monday, 12 August 2024

Monday, 12th August - www.mightymemo.co.uk

The Mighty Headlines

• Economics: US Fed official says inflation still too high

• Business: Hargreaves Lansdown to be bought for £5.4 billion

• Markets: Value of sterling falls for fourth week

• Foreign Affairs: Philippines and China military incident

• Security and intelligence: US Navy says Houthis operations degraded

• Domestic politics: Junior doctors set to vote on 22 per cent pay deal

The Mighty Stats

• FTSE = 8,196.10 (currently up 0.35 per cent)

• S&P500 = 5,344.16 (up 0.47 per cent at Friday close)

• Nasdaq = 16,745.30 (up 0.51 per cent at Friday close)

• Nikkei = 35,025.00 (up 0.56 per cent at Monday close)

• CAC40 = 2,296.71 (up 0.31 per cent at Friday close)

£1 = $1.28 / €1.17 / ¥ 187.95

The Mighty Detail

Economics: A US Federal Reserve official has said that US inflation is still too high. Federal Reserve board member, Michelle Bowman, welcomed the fall in inflation earlier this year but said that inflation was “uncomfortably above” the 2 per cent goal. Speaking on Saturday, Bowman also advised caution in lowering interest rates too soon saying that “we need to be patient”.

Business: Hargreaves Lansdown is set to be bought for £5.4 billion by a group of private equity investors. CVC Partners, Nordic Capital and Platinum Ivy – owned by the Abu Dhabi Investment Authority – made the bid which will now be put to shareholders. Hargreaves Lansdown has around 1.8 million customers and was founded by Peter Hargreaves and Stephen Lansdown in 1981. The pair own 26 per cent of shares between them.

Markets: The value of sterling has fallen for a fourth consecutive week. This is the longest period of decline since September 2023. Sterling closed at $1.27 and at €1.16 on Friday. On 12 July, sterling was at $1.29 and €1.19 which means it has declined 1.7 per cent against the dollar and 1.88 per cent against the euro in four weeks.

Foreign Affairs: In a military incident, the Philippines and Chinese governments have accused each other’s air forces of obstructive behaviour in the South China Sea. The Philippines government claims that two Chinese military aircraft dropped flares in front of a Philippines air force plane on Thursday over the Scarborough Shoal in the South China Sea. China accused the Philippines of illegally entering its airspace. Both countries claim sovereignty of the Scarborough Shoal.

Security and Intelligence: The US Navy has said that it has degraded the Houthi’s capabilities in the Red Sea but admitted there was still work to be done to secure the region. Speaking last week, Commander of the US Navy 5th Fleet, Vice Admiral George Wikoff, said that “we have certainly degraded their capability. However, have we stopped them? No.” He added that “we have seen some stabilisation but don’t get me wrong it’s not an acceptable solution.”

Domestic: Junior doctors are to vote on a 22 per cent pay deal between 19 August and 15 September. The agreement was reached between the UK government and the British Medical Association (BMA) union. The pay offer, which the BMA is recommending to its members, is backdated to 2023/24 and continues into 2024/25.

What’s happening today?

Germany WPI inflation data – wholesale goods inflation

Japan PPI inflation data – corporate goods inflation

OPEC monthly report – issues affecting world oil market

Mexico consumer confidence index (July)

Canada building permits data (June)     

United States federal balance data (July) – difference in gov.’s income and expenditure

Australia wage price index data (Q2 2024)

Lookahead to tomorrow

UK average earnings data (June)

UK unemployment rate (June)

Spain CPI inflation data (July)

US PPI inflation data (July)

New Zealand interest rate decision

Weather today

Summer scorcher in London. High of 33°C and low of 16°C. Slightly cooler in Belfast and Edinburgh but just as sunny.

Life coaching quote of the day

“Event + Response = Outcome” – Jack Canfield, bestselling author and life coach

Mighty takeaway: You choose to respond to events in your life in a certain way but people react in different ways to the same event. Why not choose to respond in a way that makes you happy, empowers you and gets you closer to your goals and the person you want to be? The choice is yours.

That’s all for today. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Friday, 9 August 2024

Friday, 9 August 2024 - www.mightymemo.co.uk

The Mighty Headlines

• Economics: Italy changes rules on taxing wealthy new residents

• Business: Asda loses sales to cut-price rivals

• Markets: UK investors put £1.2 billion into funds in June

• Foreign Affairs: Japan issues megaquake warning

• Domestic: Great Britain’s Ellie Aldrige wins gold in kite sailing

The Mighty Stats

• FTSE = 8,144.97 (down 0.27 per cent at Thursday close)

• S&P500 = 5,319.31 (up 2.30 per cent at Thursday close)

• Nasdaq = 18,413.82 (up 3.06 per cent at Thursday close)

• Nikkei = 35,025.00 (up 0.56 per cent at Friday close)

• CAC40 = 7,247.45 (down 0.26 per cent at Thursday close)

£1 = $1. 27/ €1.16 / ¥ 187.66

The Mighty Detail

The Italian government has changed the rules on taxing wealthy new residents. The annual flat tax applied to income earned abroad for new residents has increased from €100,000 to €200,000. Nicknamed the ‘billionaire’s’ tax, the arrangement introduced in 2017 means that new foreign residents are not required to pay any tax on foreign income and gifts for 15 years.

UK investors added £1.2 billion into funds in June. A total of £1.7 billion was added to funds in the first six months of 2024. This compares to £24.2 billion being taken out of funds in 2023. The overwhelming majority is being invested in index funds which seek to track the performance of stock markets.

Sales at Asda were down 2.2 per cent in the second quarter of this year. The supermarket’s share of the UK grocery market also fell to 12.7 per cent in the three months ending 7 July. This is down from 13.6 per cent in the same period last year. Asda has recently been cutting prices to compete with Aldi and Lidl.

The Japanese Meteorological Agency has issued a megaquake warning after a 7.1 magnitude earthquake hit close to the southeast coast of the country on Thursday. The warning suggests the risk of the Nanka Tough earthquake occurring, which has a magnitude of 8, is higher than normal but not imminent. The Nanka Trough earthquake occurs every 100 years to 200 years.

Great Britain’s Ellie Aldrige has won the inaugural kite sailing gold medal at the Olympic Games. Aldrige, 27, took the top spot after sailing around the leader, France’s Lauriane Nolot, who had fallen into the water. Kite sailing uses a board and large kite to pull athletes across the water.

What’s happening today?

PM to visit police station this morning and do media clip

Foreign minister travels to Paris to meet French counterpart

France unemployment rate (Q2 2024)

Canada unemployment rate (July)

Germany CPI inflation data (July)

Italy CPI inflation data (July)

Brazil CPI inflation data (July)

Mexico industrial production (June)

Lookahead to the weekend

Edinburgh Fringe Festival continues – 2nd to 26th August

Boardmasters music festival in Cornwall – 7th to 11th August   

Bristol International Hot Air Balloon Festival – 9th to 11th August

Edinburgh International Book Festival – 10th to 25th August

Closing Ceremony of Paris Olympic Games – 11th August

Weather today

Dry and sunny in London. Summer hasn’t gone away just yet High of 25ºC and low of 14ºC.

Life coaching quote of the day

“For things to change for you, you have to change.” – Jim Rohn, motivational speaker

Meaning: If you keep on doing the same things, you’ll keep on getting the same results. To achieve things you’ve never achieved before, you have to do things you’ve never done before.

Enjoy the weekend – time to rest, relax and dream! If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful. If you forward this newsletter to 10 people, we’ll send you a Mighty Memo pen!

We’ll see you again on Monday.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Thursday, 8 August 2024

Thursday, 8 August 2024 - www.mightymemo.co.uk

The Mighty Headlines

• Economics: Chancellor considers Canada-style pension funds

• Business: Disney returns to profit because of streaming services and Inside Out 2 movie

• Markets: Tech stocks climb and then fall in continued volatility

• Foreign Affairs: Spain’s Catalan separatist leader likely to be back in Spain after fleeing

• Domestic politics: Former First Minister of Wales back in Welsh Government

The Mighty Stats

• FTSE = 8,097,13 (down 0.85 per cent)

• S&P 500 = 5,199.50 (down 0.77 per cent at Wednesday close)

• Nasdaq = 16,195.81 (down 1.05 per cent at Wednesday close)

• Nikkei = 34,831.15 (down 0.74 per cent at Thursday close)

• CAC40 = 7,266.01 (up 1.91 per cent at Wednesday close)

£1 = $1.27 / €1.16 / ¥ 185.95

The Mighty Detail

The Chancellor is calling on UK pension funds to invest more in the UK economy. Ahead of a visit to Toronto, the Chancellor has said that UK pension funds should “learn lessons from the Canadian model”, where pension funds are typically larger and have the capital to invest in infrastructure and higher-growth businesses.

Disney returned to profit going into July after better-than-expected revenue from its entertainment segment. Disney saw revenue of $23.16 billion last fiscal quarter helped by its streaming services – Disney+, ESPN+ and Hulu – making a profit for the first time. Profitability was also helped by the movie Inside Out 2 which has become the highest grossing animated film in history.

Tech stocks began to climb yesterday before falling back down. Shares in Amazon, Apple and Microsoft each gained over 2 per cent at the start of the day before falling back. The US stock market ended the day down with neither the S&P 500, the Nasdaq nor the Dow Jones posting gains at market close.

Spain’s Catalan separatist leader, Carles Puigdemont, is likely to be back in Spain today after fleeing the country in 2017. He is seeking to prevent a pro-Spanish regional government from being voted on in the regional parliament in Barcelona today. Puigdemont faces charges of sedition and rebellion following a failed Catalan declaration of independence.

The former First Minister of Wales, Mark Drakeford, has been appointed as health secretary in the new Welsh Government. Drakeford, who stood down as First Minister in March 2024, previously held the position of health minister between 2013 and 2016.

What’s happening today?

UK unemployment rate (June)

France Trade data (June)

US continuing jobless claims (weekly)

US initial jobless claims (weekly)

Mexico interest rate decision

China CPI and PPI inflation data (July)

Lookahead to tomorrow

France unemployment rate (Q2 2024)

Canada unemployment rate (July)

Germany CPI inflation data (July)

Italy CPI inflation data (July)

Brazil CPI inflation data (July)

Mexico industrial production (June)

Weather today

Overcast most of the day with some chance of rain in the afternoon. High of 21°C and low of 18°C.

Life coaching quote of the day

“Vision is not enough. It must be combined with venture. It is not enough to stare up the steps; we must also step up the stairs.” – Vaclav Havel, writer and former Czech President

Meaning: Without action, your aims and goals will remain only as aims and goals. They will not materialise. The most important step to take is to take action. Just one small step first. Then another and another. Even if you don’t have the full path in front of you.

That’s it! Have a happy Thursday everyone. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Wednesday, 7 August 2024

Wednesday, 7 August 2024 - www.mightymemo.co.uk

The Mighty Headlines

• Economics: France sees more imports of Russian fuel

• Business: Google loses antitrust case on search engine monopoly

• Markets: Japanese stocks down and then up on day of recovery

• Foreign Affairs: Kamala Harris picks Tim Walz as VP running mate

• Domestic politics: New prison places created to cope with rioters

The Mighty Stats

• FTSE = 8,084.20 (currently up 0.72 per cent)

• S&P 500 = 5,240.03 (up 1.04 per cent at Tuesday close)

• Nasdaq = 16,366.86 (up 1.03 per cent at Tuesday close)

• Nikkei = 35,089.62 (up 1.19 per cent at Wednesday close)

• CAC40 = 7,130.04 (down 0.27 per cent at Tuesday close)

£1 = $1.27 / €1.16 / ¥ 186.60

The Mighty Detail

France saw imports of Liquified Natural Gas (LNG) from Russia increase by more than 50 per cent in the first half of 2024. French companies imported nearly 4.4 billion cubic metres of Russian LNG compared to over 2 billion at the same point last year. Domestic demand in France for LNG has declined 9 per cent this year. This suggests French companies are exporting the gas.

Google has lost a US antitrust case regarding its search engine business. Google pays technology companies to act as the default search engine on their devices. In 2022, Google paid Apple $20 billion for this purpose. A federal US judge has ruled that “Google is a monopolist…and has acted as one to maintain its monopoly”. Google may now be required to change its practices.

Kamala Harris has picked Tim Walz as her Vice Presidential running mate. Tim Walz has served as Governor of Minnesota since 2019. Between 2007 and 2019, he served as a Member of the United States House of Representatives. He started his career as a school teacher and American football coach.

Japanese stocks started the day down on Wednesday but finished up as a Bank of Japan official downplayed the probability of an interest rate hike. Deputy Bank Governor, Shinichi Uchida, said that the Bank would not raise interest rates while the market was unstable. Stock markets elsewhere in Asia ended Wednesday in positive territory.

The UK Government has said it will create new prison places to cope with rioters. The Justice Minister, Heidi Alexander, told the BBC yesterday that an additional 567 prison places would become available in response to the recent violence that has taken place in England and Northern Ireland. She said there would be a prison place “waiting” for everyone given a custodial sentence. The Prime Minister held a second COBRA meeting last night.

What’s happening today?

Chancellor visits Toronto

Minister for International Development begins two-day visit to Jordan

Germany Trade and Industrial Production data (June)

China Trade data (July)

UK Halifax House Price Index (July)

US MBA Purchase Index – home buying – (July)

Lookahead to tomorrow

UK unemployment rate (June)

France Trade data (June)

US continuing jobless claims (weekly)

US initial jobless claims (weekly)

Mexico interest rate decision

China CPI and PPI inflation data (July)

Weather today

Sunny until lunchtime. Light cloud in the afternoon. Dry all day. High of 23°C and low of 13°C.

Life coaching quote of the day

“You are the average of the five people you spend most time with.” – Jim Rohn, motivational speaker

Meaning: Choose your company carefully. Surround yourself with positive people and you’ll become more positive. Surround yourself with ambitious people and you’ll become ambitious. Surround yourself with negative people and you’ll likely adopt their negative attitude to life.

That’s all for today. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Tuesday, 6 August 2024

Tuesday, 6 August 2024 – www.mightymemo.co.uk

The Mighty Headlines

• Economics: EU member states may agree tariffs on Chinese electric vehicles

• Business: Carlyle misses profit estimates

• Markets: Global markets rebound after fall led by jobs, interest rates and tech concerns

• Foreign Affairs: N. Korea to send new ballistic missile launchers to S. Korea border

• Domestic politics: Starmer announces standing army of public duty officers

The Mighty Stats

• FTSE = 8033.56 (currently up 0.32 per cent)

• S&P500 = 5,186.33 (down 3 per cent at Monday close)

• Nasdaq = 16,200.08 (down 3.43 per cent at Monday close)

• Nikkei = 34,675.46 (up 10.23 per cent at Tuesday close)

• CAC40 = 7,148.99 (down 1.42 per cent at Monday close)

£1 = $1.27 / €1.16 / ¥ 185.83

The Mighty Detail

EU member states may support the introduction of permanent tariffs on Chinese electrics vehicles, Valdis Dombrovskis, the European Commissioner for Trade, said to the Financial Times. The EU imposed temporary tariffs in July of between 17.4 per cent and 37.6 per cent on Chinese electric vehicles. Permanent tariffs will be voted on in October.

One of the world’s largest private equity firms, Carlyle, missed its profit estimates in Q2 2024. Distributable earnings – the profits which can be returned to shareholders – fell to $343 million. This is down 11.7 per cent from the $389 million of earnings in Q2 2023 and is likely due to lower than expected cash from asset sales.

Global markets started to rebound on Tuesday after falling significantly on Monday amid fears of a recession in the US. The Nikkei closed up 10.23 per cent on Tuesday after closing down 12.4 per cent on Monday. The FTSE closed down 2.04 per cent on Monday and the Nasdaq closed down 3.43 per cent. Weaker than expected US jobs data, the US Federal Reserve’s failure to cut interest rates last week and concerns on the health of technology companies have contributed to the unease.

North Korea is to send 250 new tactical ballistic missile launchers to its troops close to the border with South Korea. Announcing the decision on Sunday, North Korean leader Kim Jong Un said hostility from the US had forced it to increase its military strength. Tactical ballistic missiles are designed for short-range use.

The Prime Minister, Keir Starmer, has announced a “standing army of public duty officers” to respond to the recent riots. The standing army will involve deploying police officers – not the armed forces – to parts of the country where they are most needed.

What’s happening today?

Northern Ireland Assembly is recalled to discuss riots

Kamala Harris announces her VP running mate

Eluned Morgan confirmed as Wales First Minister

Eurozone Retail Sales data (June)

US trade data (June)

German factory orders data (June)

Japan Household Spending data (June)

Lookahead to tomorrow

Chancellor visits Toronto

Germany Trade and Industrial Production data (June)

France Trade data (June)

China Trade data (July)

UK Halifax House Price Index (July)

US MBA Purchase Index – home buying – (July)

Weather today

Light rain until mid-afternoon. Then mostly dry. High of 24°C and low of 13°C.

Life coaching quote of the day

“Whether you think you can or whether you think you can’t, either way you’re right.” Henry Ford

Meaning: If you have a positive mindset and take action, you’ll be well on your way to succeeding in your endeavours. If you have a negative mindset, if you don’t believe you can be successful and if you don’t take action, your goals won’t materialise.

That’s all for today, folks. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Monday, 5 August 2024

Monday, 5 August 2024 - www.mightymemo.co.uk

The Mighty Headlines

• Economics: Eurozone unemployment increases slightly

• Business: Buffett almost halves stake in Apple

• Markets: US stocks begin week on a low

• Foreign Affairs: US defence secretary revokes plea deals with three 9/11 defendants

• Domestic politics: UK to hold International Investment Summit in October

The Mighty Stats

• FTSE = 8,013.13 (currently down 1.98 per cent)

• S&P500 = 5,346.56 (down 1.84 per cent at Friday close)

• Nasdaq = 16,776.16 (down 2.43 per cent at Friday close)

• Nikkei = 31,458.42 (closed down 12.4 per cent at Monday close)

• CAC40 = 7,251.80 (down 1.61 per cent at Friday close)

£1 = $1.27 / €1.16 / ¥ 182.00 

The Mighty Detail

Unemployment in the Eurozone increased slightly to 6.5 per cent in June from 6.4 per cent in May. The data published by Eurostat shows this is the first increase since September 2023, with just over 11.1 million people (11,122,000) unemployed in the eurozone.  

US stocks begin the week on a low after the Nasdaq and the Down Jones Industrial Average closed down on Friday after weaker than expected US jobs data. Nonfarm payroll grew by 114,000 in July below the 175,000 expected. The Nasdaq closed down 2.43 per cent to 16,776.16 and the Dow Jones fell to 1.51 per cent to 39,737.26.

Warren Buffett’s Berkshire Hathaway almost halved its stake in Apple in Q2 2024. In its second quarter earnings report published on Saturday, Berkshire Hathaway disclosed that its position in Apple was valued at $84.2 billion – down from $135.4 billion in Q1 2024. This represents a sale of around 390 million shares.

The US Secretary of Defence, Lloyd Austin, has revoked plea deals agreed with three 9/11 defendants. The US Defence Department had announced on Wednesday that pre-trial agreements had been agreed with three 9/11 defendants. These would likely have seen the defendants avoid the death penalty in exchange for life sentences.

The UK Government will hold an International Investment Summit on 14 October 2024. According to the Government, the Summit will seek to attract up to 300 industry leaders to promote investment in the UK. At last year’s investment summit, the previous UK Government announced £29.5 billion of new investment in the UK.

What’s happening today?

PM holds COBRA meeting in response to riots

Chancellor flies to North America for meetings in New York and Toronto

Kamala Harris expected to pick VP running mate (today or tomorrow)

Eurozone PPI – wholesale inflation – data (June)

US services data (July)

Lookahead to tomorrow

Eluned Morgan confirmed as Wales First Minister

Eurozone Retail Sales data (June)

US trade data (June)

German factory orders data (June)

Japan Household Spending data (June)

Weather today

Sunshine and no rain! High of 25°C and low 16°C. It’s going to be a splendid week.

Life coaching quote of the day

“Success is not having things. It’s handling things.” – Susan Jeffers, psychologist and author of the book Feel the Fear and Do It Anyway

Meaning: If you’re able to deal with any situation that comes your way, you’ll always be in a position to accomplish your aim or purpose. Nothing will be able to throw you off track from your goals.

That’s it for today. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk

Friday, 2 August 2024

www.mightymemo.co.uk

The Mighty Headlines

• Economics: Bank of England cuts interest rates to 5 per cent

• Business: Chip-maker Intel cuts 15,000 jobs

• Markets: Nikkei falls nearly 6 per cent

• Foreign Affairs: China criticises Canada for sailing navy ship through Taiwan Strait

• Domestic politics: Robert Jenrick launches Conservative leadership bid

The Mighty Stats

• FTSE = 8,174.71 (closed down 1.31 per cent)

• S&P500 = opened at 5,376.63 (currently down 2 per cent)

• Nasdaq = opened at 16,780.44 (currently down around 2.25 per cent)

• Nikkei = 35,909.70 (closed down 5.81 per cent)

• CAC40 = 7,251.80 (closed down 1.61 per cent)

£1 = $1.28 / €1.18 / ¥ 189.65

The Mighty Detail

The Bank of England cut interest rates to 5 per cent – the first cut since the start of the Covid-19 pandemic in March 2020 – down from 5.25 per cent last month. Governor Andrew Bailey said that lower inflation had helped but that there was still more work to do.

US chip-maker Intel has said that it plans to cut around 15,000 jobs – around 15 per cent of its work force – as it seeks to make $10 billion in savings in 2025. Intel has struggled to compete with rivals such as Nvidia and take advantage of AI developments.

The Nikkei fell by nearly 6 per cent today – its biggest one day drop since the ‘Black Monday’ crash of 1987. The index fell 2,216 points – 5.8 per cent – to 35,909. The drop was in part prompted by weaker than expected US job data. US unemployment rose to 4.3 per cent from 4.1 per cent and only 114,000 US jobs were created last month versus the 175,000 expected.

China criticised Canada’s decision to sail its navy ship through the Taiwan Strait on 31 July. The Canadian defence ministry called it a “routine transit” to maintain a free, open and inclusive Indo-Pacific region. China, which claims sovereignty, said that the passage had “undermined peace and stability”.

Robert Jenrick launched his bid to become the next leader of the Conservative Party. Jenrick was formerly immigration minister under the previous Conservative government and resigned over concerns the Rwanda asylum plan would not materialise.

Lookahead to tomorrow

Weekend begins! Plus the 77th edition of the Edinburg Fringe Festival with theatre, comedy and music shows. More information here.

Weather tomorrow

Light cloud and a gentle breeze. High of 24°C, low of 13°C. Dry in the morning, chance of rain in the afternoon, probably nice in the evening.

Life coaching quote of the day

“What other people think about you is none of your business.” – Les Brown, motivational speaker

Meaning: Don’t focus on what you think other people are thinking about you. People generally spend more time thinking about themselves than about you. Live your life in a way that matters and makes sense to you.

That’s all for today, folks. If you like what you read or don’t like it at all, let us know. And don’t forget to pass this newsletter on to someone who might find it useful.

Adios!

The Mighty Memo team

hello@mightymemo.co.uk