Bank of England expected to make statement as next interest rate hike to be highest in decades

The pound sank to an all-time low against the dollar this morning, and the Bank of England is expected to make a statement this afternoon after calls from the City for immediate intervention to halt Britain’s slide into a currency crisis.

Sterling dropped by 4.9 per cent to $1.0327 — its lowest level since decimalisation in 1971 — as trading opened in Asian markets for the first time since Kwasi Kwarteng, the chancellor, unveiled £45 billion of unfunded tax cuts in an emergency mini-budget on Friday.

The pound regained some ground to $1.07 by mid-morning as trading volumes increased. In a signal that the fall is not simply an indication of dollar strength, the pound also fell 2.4 per cent against the euro to €1.0887.

“Sterling is getting absolutely hammered,” Chris Weston, head of research at Pepperstone, a foreign exchange broker, said. “Investors are searching out a response from the … Read more

3 Industries That Can Be Transformed by Blockchain Technology

Many people are touting that blockchain is going to revolutionize the world. The technology that it brings to the masses is equivalent to that of the internet in the early 90s, as it allows people to send money to one another without the need of a third party. This kind of financial freedom is unprecedented in our lifetime and is set to transform many industries and businesses. Let’s take a look at the industries that can be dramatically changed by blockchain technology and how it can do that.

Banking

The one industry that everyone thinks of when it comes to blockchain technology is the banking industry. It was the sole purpose of revolutionizing the way money works that were behind the creation of the world’s first blockchain, Bitcoin, back in 2008. Even with modern online banking, sending money overseas or even to a friend using a different bank is time-consuming … Read more

Stocks Tumble as October Approaches

Monday

U.S.

Economic Lookahead

Chicago Fed national activity index (Aug.)

Featured Earnings

Legend Biotech Corporation (NASDAQ:LEGN) (Q3) EPS estimates for loss of 58 cents, compared to a loss of 32 cents in the prior-year quarter.

NextDecade Corporation (NASDAQ: NEXT) (Q2) EPS estimates for loss of seven cents, compared to a loss of 13 cents in the prior-year quarter.

Legacy Housing Corporation (NASDAQ: LEGH) (Q3) EPS estimates of 55 cents, compared to 51 cents in the prior-year quarter.

Canada

Featured Earnings

Aurora Cannabis Inc. (T.ACB) (Q4) EPS estimates for loss of 27 cents, compared to a loss of 68 cents in the prior-year quarter.

Avivagen Inc. (V.VIV) (Q3) EPS estimates for loss of two cents, compared to a loss of three cents in the prior-year quarter.

Tuesday

U.S.

Economic Lookahead

Durable goods orders (Aug.)

S&P Case Shiller U.S. home price index (July)

FHFA U.S. home price index (July)

Consumer confidence index … Read more

Ignore the howls of protest: It’s right to reward the risk-takers and the hard-working

The widely trailed mini-budget of our new Government has provoked howls of protest from the massed ranks of economists and commentators who, until last week, represented conventional wisdom.

Sometimes it is right to kick against orthodoxies – to defy the ‘not how things are done around here’ mentality.

And at long last, HM Treasury is under new management.

Chancellor Kwasi Kwarteng’s revolution in fiscal policy – the way the Government tries to influence the economy through spending and taxation – has finally put Britain on track for a better future.

I am especially pleased by the Chancellor’s abolition of damaging tax measures, including the rise in National Insurance and a planned rise in Corporation Tax.

I also applaud his rethink of the tax status of self-employed workers. The extra red tape proposed by the previous Chancellor, Rishi Sunak, would have made it so much harder for the self-employed and the … Read more