Closing post
Time for a recap
More companies across England and Wales went bust in the past year than during the financial crisis, new data shows.
In the year to July, there were 25,551 insolvencies.
In July alone, 16% more companies failed than a year ago, despite a 7% drop compared with June.
The gold price has hit a series of record highs today , to above $2,530 per ounce, lifted by hopes of cuts to US interest rates soon.
More than £1bn has been wiped off the value of BT, after Sky struck a broadband deal with one of its largest rivals.
The pound is on track to close at its highest level against the US dollar in over a year – its trading at $1.3022 this afternoon.
The dollar has been pushed down by expectations of US interest rate cuts in September.
Sweden’s Riksbank has cut its key interest rate today.
Inflation has ticked up in the euro area, but dropped in Canada.
Germany’s central bank is optimistic that its economy will avoid recession.
In Italy, the search for the six missing passengers of the Bayesian yacht is continuing. They are Mike Lynch, a British tech entrepreneur, and Hannah Lynch, his 18-year-old daughter. Chris Morvillo, a lawyer who represented Lynch during his recent fraud trial, and his wife Neda Morvillo as well as Jonathan Bloomer, the chair of Morgan Stanley International bank, and his wife Judy Bloomer.
There are several reasons why the gold price could rise higher, argues Ole Hansen, head of commodity strategy at investment platform Saxo:
The most important, he says, are:
Geopolitical risks related to Russia/Ukraine, the Middle East and not least uncertainty regarding the November US presidential election.
Strong retail demand in China amid the desire to park money in a sector seen as relatively immune to a struggling economy and property woes and the outside risk of the Yuan devaluing.
Continued central bank demand amid geopolitical uncertainty and de-dollarisation, and not least gold’s ability to offer a level of security and stability that other assets may not provide.
The US presidential election outcome also a cause for concerns as both candidates are prepared to spend money they haven’t got, thereby lifting the US debt levels further.
Rising debt-to-GDP ratios among major economies, not least in the US, raising some concerns about the quality of debt. A worry that saw record demand in Q2 from rich individuals and wealthy family offices through the OTC market.
In addition, we are now increasingly seeing the positive impact of an incoming US rate cutting cycle, a period that historically has seen the yellow metal perform well.
Rate cuts could see interest rate-sensitive investors return to gold via exchange-traded funds (ETFs), which have seen consistent net selling since 2022 when the Federal Market Open Committee (FOMC) began its aggressive rate-hiking campaign.
