Afternoon summary
Time for a recap:
The pound is heading for its seventh daily fall in a row – its worst run since March 2020 – as signs build that the UK economy is slowing.
Sterling is down almost half a cent at $1.281, barely a week after hitting 15-month highs of $1.314 against the US dollar.
The pound is set for a seventh-straight day of losses
— Bloomberg UK (@BloombergUK) July 24, 2023
That would be its longest losing streak since the start of the Covid pandemic in March 2020: https://t.co/UXTAsh2ZV5 pic.twitter.com/VuXcbcwoMc
The pound has weakened as City investors have cut their forecast for the peak in UK interest rates to around 5.75%, down from 6.5% expected earlier this month.
Sterling came under more pressure after a survey of UK purchasing managers found that Britain’s economy is close to stalling this month.
Data provider S&P Global found that rising interest rates, elevated inflation, and more caution among clients due to the uncertain economic outlook hit company growth.
High interest rates are set to restrain the economy over the next few years, with economic forecasters at EY ITEM Club halving their 2024 growth forecast.
Borrowers continue to face higher costs too, with two-year fixed mortgage rates rising again today.
But with the UK economy weakening, the Bank of England could resist pressure for a large interest rate rise next month, and only plump for a quarter-point hike.
The US economy is also slowing this month, while eurozone firms suffered a drop in activity.
Elsewhere today…
Some of the strikes planned by baggage handlers and other workers at airport Gatwick in the peak summer travel period have been suspended or cancelled.
The Unite trade union has announced that staff were offered better pay deals, meaning some strikes are cancelled and others put on hold pending ballots.
Striking works https://t.co/2CIH1qXtrA pic.twitter.com/eCsGPOC35d
— James Doleman (@jamesdoleman) July 24, 2023
Rail passengers are facing further disruption over the summer holidays after train drivers announced another week-long overtime ban in a long-running dispute over pay.
Elon Musk has revealed a new logo for Twitter, choosing a “minimalist art deco” X as part of a rebrand of the platform.
Reaction from the social media platform’s users has been mixed, if witty:
You maniacs. #TwitterX pic.twitter.com/tVkf514y0v
— Marshall Julius (@MarshallJulius) July 24, 2023
Chortled at "Graphic Design is My Passion". God bless this rebranding for bringing good Twitter out of retirement, likely only for one last show https://t.co/RkjfCrtKNn
— Bethany Wheatley (@b3thany) July 24, 2023
Must has also indicated the design would be altered, tweeting that it “probably changes later, certainly will be refined”.
Financial regulators are to be summoned to parliament to explain how they prosecuted the case of a multimillion-pound pensions fraud whose victims have yet to receive compensation and which has not led to anyone serving prison time.
Welsh whisky is to join its Scottish and Irish counterparts in being officially awarded protected origin status under the UK’s post-Brexit regime.
Factories in England and Wales are seeing a downward trend in the share of their trade going to the EU, an analysis from the manufacturers’ trade body shows.
Holiday company TUI has now said it had cancelled all its flights from Britain to the Greek island of Rhodes up to and including Friday due to the wildfires on the island.
TUI also put on six extra planes today to fly customers from Germany and the UK back home.
Ryanair has said its flights to Rhodes are operating as normal and are unaffected by forest fires that have prompted large-scale evacuations of the Greek island, as it reported a near quadrupling of profits in the spring.
The venture capital industry has come under fire from MPs for its “unacceptable failure” to invest in businesses located outside London or south-east England, or those run by women and ethnic minorities.
TUI cancels UK flights to Rhodes up to Friday
Holiday company TUI has now said it had cancelled all its flights from Britain to the Greek island of Rhodes up to and including Friday, due to the wildfires hitting the island, Reuters reports.
TUI had previously cancelled all its trips there up to and including Tuesday.
The company continues to operate repatriation flights to bring stranded holidaymakers back to the UK and other European countries, as flagged earlier today.
Its statement on Monday added that it had also cancelled flights for holidaymakers heading to the hotels in Rhodes which have been affected by the fires up to and including Sunday.
TUI adds:
“All customers due to travel on these flights will receive full refunds.”
Updated
