GDP reveals shock loss, Royal Mail fined ₤ 10.5 m

Another dip in UK result today included stress on the Bank of England to think about a back-to-back cut in rate of interest.

The unanticipated 0.1% decrease in GDP in October came as task delayed in the run-up to theBudget Bank plan manufacturers satisfy following week.

Meanwhile, Royal Mail has actually been fined ₤ 10.5 million after failing to meet its delivery targets in the 2023/24 fiscal year.

08:33, Graeme Evans

Miners and Prudential are amongst today’s FTSE 100 fallers after Asia- based financiers revealed irritation at the lack of brand-new China stimulation steps.

The Shanghai Composite and Hang Seng index shed 2% at the verdict of China’s Central Economic Work Conference.

Asia- concentrated Prudential dropped 9.4 p to 653.4 p on top of the FTSE 100 fallers board, while the influence on the need expectation created Rio Tinto to go down 42p to 4958p and Glencore to relieve 2.7 p to 375.2 p.

The most current frustrating upgrade on the UK economic climate compromised housebuilder Persimmon by 9.5 p at 1268p and Barratt Redrow by a cent at 436.7 p.

On the risers board, airline company IAG climbed 2p to 293.8 p after RBC increased its rate target on the British Airways proprietor to 350p.

Marks & & Spencer and Diageo additionally raised by 1% as the FTSE 100 index climbed up 0.2% or 16.27 indicate 8328.07.

07:54, Graeme Evans

Royal Mail has actually been fined ₤ 10.5 million for falling short to satisfy its initial and 2nd course shipment targets in the 2023/24 fiscal year.

This is the 2nd time that Ofcom has actually located the firm in violation of its regulative commitments in recent times, having actually fined it ₤ 5.6 million in November 2023.

Ofcom needs Royal Mail to supply, in each fiscal year, 93% of excellent mail within one functioning day of collection and 98.5% of 2nd course mail within 3 functioning days.

From April 2023 to March 2024, Royal Mail supplied 74.7% of excellent mail on schedule and 92.7% of 2nd course mail on schedule.

The firm condemned the efficiency on its tough economic setting and hold-ups to the tally on a bargain that complied with the previous year’s commercial activity.

Ofcom stated: “We do not consider either of these to be justifiable reasons for Royal Mail’s failure to provide the levels of service expected of it. Ultimately, it is for the company to manage its financial position taking account of its obligations.”

Director of enforcement Ian Strawhorne included: “With millions of letters arriving late, far too many people aren’t getting what they pay for when they buy a stamp.

“Royal Mail’s poor service is now eroding public trust in one of the UK’s oldest institutions.

“This is the second time we’ve fined the company since the pandemic. Royal Mail has provided an improvement plan, and we’re seeing some signs of progress, but it must go further and faster to deliver the service that people expect.”

07:43 , Graeme Evans

Capital Economics said today’s 0.1% dip in UK output in October means there’s every chance that the fourth quarter as a whole will show a decline.

The consultancy said it was hard to tell how much of the monthly fall is temporary due to activity being put on hold ahead of the Budget.

The ONS reported that some manufacturers, retailers and employment agencies said that turnover was “negatively affected” however others profited as task was advanced.

Chief UK economist Paul Dales said the starting point for the quarter means that it is unlikely that GDP will match its 0.2% Q4 forecast or the Bank of England’s 0.3%.

He included: “That said, with the Bank still worrying that inflation is too high, we don’t think the economy is weak enough to prompt the Bank to follow November’s 0.25% rate cut with another cut at next Thursday’s December meeting.

“That said, we’re not as confident about that as we were before this data release.”

07:27 , Graeme Evans

A survey by GfK today showed consumer confidence held firm in December.

NIQ GfK customer understandings supervisor Neil Bellamy stated: “In December, consumers adopted the holding pattern we’ve seen for much of 2024, with the one-point increase in the overall Index to -17 very close to the 2024 average of -18.

“Consumer confidence is still far from strong but there is some room for optimism with views on personal finances over the next 12 months up two points versus November and creeping back into positive territory.”

However, consumers are still thinking twice about big-ticket purchases after the score for this section stayed the same at minus 16 in the run-up to Christmas.

07:09 , Graeme Evans

The UK economy contracted by 0.1% for a second month in a row during October.

The GDP estimate compares with City forecasts for growth of about 0.1%-0.2%.

The ONS also reported an unexpected decline in industrial production of 0.6%, which compared with hopes for a rebound to growth of 0.3%.

07:01 , Graeme Evans

Asia markets have experienced a bout of heavy selling after China’s Central Economic Work Conference failed to announce new stimulus details.

The Shanghai Composite and Hang Seng index are down by around 1.9%.

Japan’s Nikkei 225 has also fallen 1% following a poor session for US markets, with the S&P 500 index 0.5% lower and the Nasdaq Composite down 0.7%.

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GDP reveals shock loss, Royal Mail fined ₤ 10.5 m

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