George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Next week the Bank of England will meet for the first time this year for its latest decision on interest rates.
It is all but certain that interest rates – which stand at a post-financial crisis high of 5.25 per cent – will be left on hold for now, but looking further into the year there is more debate.
Markets are convinced that a rate cut is coming, likely in the first half of this year.
https://www.cityam.com/six-graphs-that-explain-the-uk-economy-ahead-of-bank-of-englands-interest-rate-decision/
There has been a big data drop in the US with economic growth figures stronger than expected, powered by consumer spending.
GDP rose at a 3.3% annualised rate, according to the government’s preliminary estimate, ahead of market forecasts of 2.0% growth.
Thirteen years of rock-bottom interest rates made it very hard for the sector to make profits, but the need to quell inflation with higher interest rates means the last two years have delivered a dramatic turnaround.
‘Bank investors are reaping the dividends of this reversal and we expect them to see even larger payouts in 2024
https://www.google.com/amp/s/www.thisismoney.co.uk/money/markets/article-13001421/amp/Higher-rates-push-banks-pay-dividends-sector.html
The banking sector’s strong performance was driven by Asia-focused giant HSBC, which awarded £8.4bn over the course of last year – nearly double the £4.4bn it paid in 2022.
HSBC resumed its quarterly dividends after suspending them during the Covid-19 pandemic and reasserted itself as the UK’s top dividend payer – last holding the title in 2008.
It has promised a $4bn (£3.1bn) special dividend from the sale of its Canadian business to RBC, which received government approval last month.
Banks’ profits were boosted by the Bank of England hiking interest rates 14 times in a row until last September, giving them scope for much larger dividends.
Https://www.cityam.com/banks-lead-uk-firms-in-dividend-payments-after-hsbc-dishes-out-8-4bn/
The European Central Bank’s governing council has kept interest rates unchanged, as expected.
The ECB’s rate on its main refinancing operations, which provide the bulk of liquidity to the banking system, is at 4.5%. Its deposit rate, which is paid on commercial bank deposits, is at 4%. The marginal lending facility, which offers overnight credit to banks, is at 4.75%.
Recovery in private sector output gains momentum in January, but Red Sea crisis hits manufacturing supply chains and pushes up input costs
Key findings:
Flash UK PMI Composite Output Index(1)at 52.5 (Dec:
52.1). 7-month high.
Flash UK Services PMI Business Activity Index(2) at
53.8 (Dec: 53.4). 8-month high.
Flash UK Manufacturing Output Index(3) at 44.9
(Dec: 45.5). 3-month low.
Flash UK Manufacturing PMI(4) at 47.3 (Dec: 46.2).
9-month high.
Data were collected 11-22 January
January data revealed a stronger upturn in UK private
sector output than at the end of 2023, led by a further
rebound across the service economy. The rise in service sector activity was the fastest since last May, where as manufacturing production decreased to the greatest extent for three months. The latest survey also indicated a return of modest private sector employment growth at the start of 2024, supported by improving demand conditions and higher levels of optimism towards the business outlook. Private sector firms meanwhile recorded the steepest rise in input costs since August 2023, driven by renewed cost pressures in the manufacturing sector. There were widespread reports of higher freight costs in the wake of the Red Sea crisis. Moreover, global shipping delays meant that suppliers’ delivery times lengthened for the first time in 12 months and to the greatest extent since 2022
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