Pound drops below $1.16
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020, as anxiety over the UK economy rises.
The pound has dropped as low as $1.1565 this morning, as the Energy crisis hammers businesses and consumers, hurting Britain’s economic outlook.
The selloff comes after the pound racked up its worst month against the dollar since October 2016.
Fears that the UK is heading into recession pushed sterling down by 4.5% against the dollar during August; the dollar continues to strengthen as America’s central bank vows to keep raising interest rates.
Naeem Aslam of Avatrade says sterling is getting “absolutely battered” against the dollar, led by concerns over the cost of living crisis.
Consumers in the UK are squeezed to such a level that we have not seen in nearly a century, and the hope is that the new Prime Minister will deliver some sort of relief package, which should be in billions, to ease off the current crisis.
Liz Truss, the most favorite among bookies as the next Prime Minister, has already ruled out any tax hikes for this year or rationing of energy in the coming winter. Her second promise look shaky because the energy crisis is pretty much unavoidable, and it would be highly difficult to avoid energy rationing.
Nonetheless, the most important thing which matters for consumers is not energy rationing but, in fact, a support package that can ease off their Living Standards.
Narasimhan will leave at the end of the month, with senior independent director Nicandro Durante stepping in while the board “evaluates and selects the future leadership”.
","elementId":"b3a35191-75e3-4e43-87b7-51ca55993d5c"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Reckitt, the firm behind Dettol, Nurofen and Durex, told shareholders that:
","elementId":"88c41c71-07eb-42a6-80e6-f68ab3445e79"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"010e7e7d-df7b-4523-9544-3c413dd82078"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Laxman has decided for personal and family reasons to relocate back to the United States and has been approached for an opportunity that enables him to live there.
\n
Narasimhan has served three years as Reckitt’s CEO, steering the company though the pandemic, and then the economic shock from the Ukraine war, which led to price rises:
","elementId":"9da16d31-1da1-4bcb-ac3b-859918eb5bae"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Victoria Scholar, head of investment at interactive investor says:
","elementId":"b3023c0a-3379-4d34-947d-b1ed2bbf58fc"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"cd7eda07-7567-476e-ae07-d6354b0ce05d"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","url":"https://www.theguardian.com/business/2022/jul/27/double-digit-price-hikes-help-heinz-and-reckitt-deliver-sales-jump","text":"Double-digit price hikes help Heinz and Reckitt post jump in value sales","prefix":"Related: ","role":"thumbnail","elementId":"bc170f94-0899-4e73-8142-4922cff30588"}],"attributes":{"pinned":false,"keyEvent":true,"summary":false},"blockCreatedOn":1662017270000,"blockCreatedOnDisplay":"08.27 BST","blockLastUpdated":1662017737000,"blockLastUpdatedDisplay":"08.35 BST","blockFirstPublished":1662017737000,"blockFirstPublishedDisplay":"08.35 BST","blockFirstPublishedDisplayNoTimezone":"08.35","title":"Reckitt shares down as CEO to step down","contributors":[],"primaryDateLine":"Thu 1 Sep 2022 08.36 BST","secondaryDateLine":"First published on Thu 1 Sep 2022 07.51 BST"},{"id":"631052838f08a2989bf5457c","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Despite significant share price moves in both directions, the stock is little changed since the start of his time as CEO.
\nHaving said that, the consumer goods giant has successfully navigated the post-covid challenging inflationary environment by raising prices for shoppers to successfully offset price pressures without denting consumer demand.
\n
Sterling has fallen to its lowest level against the US dollar since the pandemic crash in March 2020, as anxiety over the UK economy rises.
","elementId":"1bce307b-2f95-4c34-bf3f-7d03194e1092"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"The pound has dropped as low as $1.1565 this morning, as the energy crisis hammers businesses and consumers, hurting Britain’s economic outlook.
","elementId":"42a4b814-48d6-499a-bff3-85fa2222af22"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"The selloff comes after the pound racked up its worst month against the dollar since October 2016.
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that the UK is heading into recession pushed sterling down by 4.5% against the dollar during August; the dollar continues to strengthen as America’s central bank vows to keep raising interest rates.
","elementId":"37f428c6-cbb5-423b-8810-fca15ed53bb7"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Naeem Aslam of Avatrade says sterling is getting “absolutely battered” against the dollar, led by concerns over the cost of living crisis.
","elementId":"f7c65e8f-3d3c-49d7-83b8-20e870e38851"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"cd770cc9-c820-46e6-be68-93e6f1e7525b"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","url":"https://www.theguardian.com/politics/2022/aug/31/liz-truss-rules-out-energy-rationing-this-winter-at-final-tory-hustings","text":"Liz Truss rules out energy rationing this winter at final Tory hustings","prefix":"Related: ","role":"thumbnail","elementId":"d6397dd1-ac11-45ce-8d80-2077dc950916"}],"attributes":{"pinned":true,"keyEvent":true,"summary":false},"blockCreatedOn":1662015108000,"blockCreatedOnDisplay":"07.51 BST","blockLastUpdated":1662015185000,"blockLastUpdatedDisplay":"07.53 BST","blockFirstPublished":1662015185000,"blockFirstPublishedDisplay":"07.53 BST","blockFirstPublishedDisplayNoTimezone":"07.53","title":"Pound drops below $1.16","contributors":[],"primaryDateLine":"Thu 1 Sep 2022 08.36 BST","secondaryDateLine":"First published on Thu 1 Sep 2022 07.51 BST"},{"id":"631044298f0855ae7501df8a","elements":[{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Consumers in the UK are squeezed to such a level that we have not seen in nearly a century, and the hope is that the new Prime Minister will deliver some sort of relief package, which should be in billions, to ease off the current crisis.
\nLiz Truss, the most favorite among bookies as the next Prime Minister, has already ruled out any tax hikes for this year or rationing of energy in the coming winter. Her second promise look shaky because the energy crisis is pretty much unavoidable, and it would be highly difficult to avoid energy rationing.
\nNonetheless, the most important thing which matters for consumers is not energy rationing but, in fact, a support package that can ease off their living standards.
\n
Good morning, and welcome to our rolling coverage of business, the world economy and the financial markets.
","elementId":"2fd0d35b-95a2-49d1-8987-59d6e9d17c73"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Britain is facing the biggest squeeze in living standards for a century, a new report into the challenge facing the next Prime Minister shows.
","elementId":"6d9f45d3-1a2d-4541-938c-29d806678523"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"In a desperately worrying forecast, real household disposable incomes are on track to fall by 10% over this year and next. With inflation surging, rising prices mean all the real pay growth since 2003 will have been wiped out.
","elementId":"f2baf3e0-3e15-4c06-9fff-c460d26b68b0"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Resolution Foundation fears that the number of people living in absolute poverty is set to rise by three million, to 14 million people in 2023-24.
","elementId":"3a9a64a1-5d9a-48bc-b16c-0d73f66cc6ba"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"And one in three children could fall into relative poverty, the highest level since the peaks of the 1990s.
","elementId":"beeb38fc-0541-4df4-aa85-595e6ef798eb"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Resolution warns that Britain faces a bleak winter for living standards – with the living standards crisis set to stretch well beyond this winter into next year and 2024.
","elementId":"49423a7a-2616-4bf2-bfe3-b6fade17515b"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Real earnings, which are already falling at their fastest rate since the Queen’s Silver Jubilee in 1977, are forecast to continue falling until at least mid-2023, by which time all real pay growth since 2003 will have been wiped out.
","elementId":"6fdea7c1-9a4a-4598-b7a4-cc0673870ceb"},{"_type":"model.dotcomrendering.pageElements.TweetBlockElement","html":"\n","url":"https://twitter.com/resfoundation/status/1565221666216677377","id":"1565221666216677377","hasMedia":false,"role":"inline","isThirdPartyTracking":false,"source":"Twitter","elementId":"4fe8eec8-8d6f-469f-af67-e25fbe4a7194"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Without further significant interventions from Government, household incomes are on course to fall by 5% this year, and by 6% next year. This stark two year income fall – equivalent to £3,000 for the typical household – would be the deepest living standards squeeze in a century. pic.twitter.com/QXFLopGLv6
— Resolution Foundation (@resfoundation) September 1, 2022
Lalitha Try, Researcher at the Resolution Foundation, says ‘radical action’ is needed by the next PM:
","elementId":"36149c03-c59e-4279-b3c5-af3e5b2fb785"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"968cb7c5-1f93-456c-81ba-ef27c4384e78"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"“Britain is already experiencing the biggest fall in real pay since 1977, and a tough winter looms as energy bills hit £500 a month. With high inflation likely to stay with us for much of next year, the outlook for living standards is frankly terrifying.
\n“Typical households are on course to see their real incomes fall by £3,000 over the next two years – the biggest squeeze in at least a century – while three million extra people could fall into absolute poverty.
\n“No responsible government could accept such an outlook, so radical policy action is required to address it. We are going to need an energy support package worth tens of billions of pounds, coupled with increasing benefits next year by October’s inflation rate.
\n“The new Prime Minister also needs to improve Britain’s longer-term outlook, which can only be achieved by a new economic strategy that delivers higher productivity and strong growth.”
\n
Here’s the full story:
","elementId":"242555d9-a3bd-4c92-a3b7-d30e019a9073"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","url":"https://www.theguardian.com/business/2022/sep/01/uk-households-spending-power-drop-resolution-foundation-energy-bills-warning-poverty","text":"UK households’ spending power to drop by £3,000, warns thinktank","prefix":"Related: ","role":"thumbnail","elementId":"1d2e06fb-0096-479f-a60d-09086f6dd9f7"},{"_type":"model.dotcomrendering.pageElements.SubheadingBlockElement","html":"Also coming up today
","elementId":"19b9e066-61ee-422d-8fbf-695a4167d1a9"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"The latest manufacturing surveys are likely to confirm that UK and eurozone factory activity contracted last month.
","elementId":"6a3d1759-7004-4039-bbfe-1fdfbcc7cd8b"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"European stock markets will start September with losses, after finishing August on the back foot. The FTSE 100 fell 1% yesterday, as government bond markets weakened.
","elementId":"53817670-7003-41e0-a79f-bebf6ff0a563"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Worries about the global economy, as inflation accelerates, are hitting stocks and bonds.
","elementId":"0df7201e-9011-45bf-bf6b-1169d23ad37c"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"The last four days has seen a sharp change in sentiment with yields jumping sharply across the board since Fed chair Jerome Powell’s hawkish Jackson Hole speech, says Michael Hewson of CMC Markets:
","elementId":"9c24700d-8884-4818-8110-80a5d9bd6c6b"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"67b35e90-372c-4985-b597-7ccc461c70d6"},{"_type":"model.dotcomrendering.pageElements.SubheadingBlockElement","html":"While US markets fell sharply in August, we’ve also seen sharp declines in global bond markets, with US yields jumping sharply higher
\nWhile US yields have seen a sharp rise, these gains have been outpaced by a surge in German and UK yields both on the short and the long end, as markets increasingly price in the prospect of much higher interest rates, as central banks signal a singular determination to rein in sharply rising inflation.
\n
The agenda
","elementId":"f7cff48b-d355-4917-a1b0-4b924e4db0e4"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"- \n
7am BST: Nationwide’s UK house price index for August
\n 9am BST: Eurozone manufacturing PMI for August
\n 9.30am BST: UK manufacturing PMI for August
\n 9.30am BST: ONS report into GDP, UK regions and countries: October to December 2021
\n 9.30am BST: Weekly realtime data showing economic activity and social change in the UK.
\n 1.30pm BST: US weekly jobless figues
\n
Key events
Narasimhan will leave at the end of the month, with senior independent director Nicandro Durante stepping in while the board “evaluates and selects the future leadership”.
","elementId":"b3a35191-75e3-4e43-87b7-51ca55993d5c"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Reckitt, the firm behind Dettol, Nurofen and Durex, told shareholders that:
","elementId":"88c41c71-07eb-42a6-80e6-f68ab3445e79"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"010e7e7d-df7b-4523-9544-3c413dd82078"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Laxman has decided for personal and family reasons to relocate back to the United States and has been approached for an opportunity that enables him to live there.
\n
Narasimhan has served three years as Reckitt’s CEO, steering the company though the pandemic, and then the economic shock from the Ukraine war, which led to price rises:
","elementId":"9da16d31-1da1-4bcb-ac3b-859918eb5bae"},{"_type":"model.dotcomrendering.pageElements.TextBlockElement","html":"Victoria Scholar, head of investment at interactive investor says:
","elementId":"b3023c0a-3379-4d34-947d-b1ed2bbf58fc"},{"_type":"model.dotcomrendering.pageElements.BlockquoteBlockElement","html":"\n","elementId":"cd7eda07-7567-476e-ae07-d6354b0ce05d"},{"_type":"model.dotcomrendering.pageElements.RichLinkBlockElement","url":"https://www.theguardian.com/business/2022/jul/27/double-digit-price-hikes-help-heinz-and-reckitt-deliver-sales-jump","text":"Double-digit price hikes help Heinz and Reckitt post jump in value sales","prefix":"Related: ","role":"thumbnail","elementId":"bc170f94-0899-4e73-8142-4922cff30588"}],"attributes":{"pinned":false,"keyEvent":true,"summary":false},"blockCreatedOn":1662017270000,"blockCreatedOnDisplay":"08.27 BST","blockLastUpdated":1662017737000,"blockLastUpdatedDisplay":"08.35 BST","blockFirstPublished":1662017737000,"blockFirstPublishedDisplay":"08.35 BST","blockFirstPublishedDisplayNoTimezone":"08.35","title":"Reckitt shares down as CEO to step down","contributors":[],"primaryDateLine":"Thu 1 Sep 2022 08.36 BST","secondaryDateLine":"First published on Thu 1 Sep 2022 07.51 BST"},{"id":"631052838f08a2989bf5457c","elementDespite significant share price moves in both directions, the stock is little changed since the start of his time as CEO.
\nHaving said that, the consumer goods giant has successfully navigated the post-covid challenging inflationary environment by raising prices for shoppers to successfully offset price pressures without denting consumer demand.
\n
