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International Airlines Group is facing shareholder pressure over a decision to increase chief executive Luis Gallego's share awards despite enormous losses during the pandemic

LONDON, May 24 (Reuters) - Banks and insurers that fail to manage climate risks as a "first-order" issue could face a 10% to 15% hit to annual profits and higher capital requirements, the Bank of England (BoE) said on Tuesday.

https://www.reuters.com/business/sustainable-business/bank-england-tells-banks-take-climate-action-now-or-face-profit-hit-2022-05-24/

Duncan Brock, Group Director at CIPS, said:

“The disappointing performance of the UK economy contributed to a big pile of concerns for private sector business in May as business optimism dropped like a stone to its lowest level for two years amidst a shortage of skilled staff, weaker orders and worries about the cost of doing business.
“The services sector fared worst with business expectations falling by the most since March 2020 when the pandemic first hit. Even the relative buoyancy in orders for travel and hospitality was not enough to rescue service providers from the sinking feeling that recession is knocking on the door. The fear is that the squeeze on household incomes could potentially starve the sector of further bookings as rising costs in energy, food and fuel dominate consumer thinking.
“For manufacturers it was the continued disruption in supply chains from geo-political tensions such as the War in Ukraine and the highest inflation rises for raw materials for more than 20 years, that had them worried. With production growth the joint lowest since October 2021, it feels the sector is stepping back instead of building on the recovery enjoyed at the beginning of the year.”

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said:
“The UK PMI survey data signal a severe slowing in the rate of economic growth in May, with forward-looking indicators hinting that worse is to come. Meanwhile, the inflation picture has worsened as the rate of increase of companies' costs hit yet another all-time high.
“The survey data therefore point to the economy almost grinding to a halt as inflationary pressure rises to unprecedented levels.
“The tailwind from the reopening of the economy has faded, having been overcome by headwinds of soaring prices, supply delays, labour shortages and increasingly gloomy prospects. Companies cite increasingly cautious moods among households and business customers, linked to the cost-of-living crisis, Brexit, rising interest rates, China's lockdowns and the war in Ukraine.
“There are some signs that the rate of inflation could soon peak, with companies reporting price resistance from customers, and it is likely that the slowing in demand will help pull prices down in coming months. However, the latest data indicate a heightened risk of the economy falling into recession as the Bank of England fights to control inflation.”

Key findings:
Flash UK PMI Composite Output Index(1) at 51.8 (Apr: 58.2). 15-month low.
Flash UK Services PMI Business Activity Index(2) at 51.8 (Apr: 58.9). 15-month low.
Flash UK Manufacturing Output Index(3) at 51.8 (Apr: 54.3). 2-month low.
Flash UK Manufacturing PMI(4) at 54.6 (Apr: 55.8). 16-month low.
Data were collected 12-20 May
S&P Global / CIPS Flash UK PMI Composite Output Index

UK private sector firms signalled a sharp slowdown in business activity growth during May as escalating inflationary pressures and heightened geopolitical uncertainty acted as constraints on customer demand.
Latest data indicated the fastest rise in operating expenses since this index began in January 1998, led by a rapid acceleration in input cost inflation across the service economy. Concerns about squeezed margins and weaker order books resulted in a considerable drop in business expectations for the year ahead. This index signalled the lowest private sector growth projections since May 2020.

Analysts say the Pound is trapped in a stagflationary vortex that will see inflation rise sharply in the near-term and economic growth fall to "a borderline recession".

"To describe this combination of double-digit inflation and zero growth as toxic for the exchange rate would be an under-statement," says Paul Meggyesi, Head of Global FX Strategy at JP Morgan in London.

https://www.google.com/amp/s/www.poundsterlinglive.com/gbp-live-today/17003-jp-morgan-pound-to-euro-and-dollar-forecasts-may-22/amp

I expect a JP Morgan to give another broker rating for Lloyds later today 61p they been tipping this throughout the pandemic Joker's

The UK is the "poster child for stagflation" says investment bank JP Morgan as it announces "pretty deep cuts" to their British Pound forecasts.

Updating their Sterling forecast profile in a regular monthly currency briefing JP Morgan also says the Dollar's trend of appreciation is not yet complete while they think the Euro will also come under further pressure.

Analysts say the Pound is trapped in a stagflationary vortex that will see inflation rise sharply in the near-term and economic growth fall to "a borderline recession".

"To describe this combination of double-digit inflation and zero growth as toxic for the exchange rate would be an under-statement," says Paul Meggyesi, Head of Global FX Strategy at JP Morgan in London.

https://www.google.com/amp/s/www.poundsterlinglive.com/gbp-live-today/17003-jp-morgan-pound-to-euro-and-dollar-forecasts-may-22/amp

FTSE 100 to go into reverse as geopolitical tension ramps up further
London’s blue-chip index is being called 51 points lower

Bubble2021
"Livestock what about by the sea ?"

Your right my brother lives down Bournemouth house prices have gone up at a higher rate on South coast than in the Chilterns, 20 years ago they was half the price now they the same price , with interest rates going up mortgage repayment will go up but this will equal out with pay increase and the house rally continues

House prices near the Chelsea Flower Show site outgrew the UK average property prices by significant margins over the last year, a new study suggests.

Analysis from Lloyds Bank (LLOY.L) shows the prices of homes in towns with famous gardens attract a higher premium, with those in London attracting a premium of £2.2m ($2.8m) on the capital's average.

The average house price was at a record £286,079 in April, an annual increase of 10.8%, according to the latest figures from Halifax.

Lloyds research said the average price of homes neighbouring 50 of Britain's most notable gardens in 2022 was £466,912, a premium of £107,189 compared to the average house price for the counties they are in.

https://uk.finance.yahoo.com/news/house-prices-chelsea-flower-show-144535962.html

UBS maintains a Buy rating

British Airways (BA) has agreed to refund customers after hundreds of thousands complained about the airline offering vouchers.

The carrier has decided to repay customers who cannot use their vouchers online, those who used ‘complex’ booking systems such as Avios air miles and BA Holiday vouchers, the Daily Mail reported.

Despite the airline’s promises several people took it to Twitter to complain about missing refunds

https://www.cityam.com/british-airways-will-swap-vouchers-for-refunds-following-travellers-fury/

Banks usually make money by taking deposits and lending them back to borrowers at higher rates and for a longer time.

They can also take long-term, non-interest-bearing deposits and hedge them using interest rate swaps. These form a bank's net interest margin (NIM) but they have been slashed in this prolonged period of low rates.

'Higher interest rates are good news for banks as it allows them to make a higher net interest margin,' says James Yardley, senior research analyst at FundCalibre.

'For years, very low interest rates have made this incredibly difficult. Even a small change can have a big impact on such a highly geared business.'

Before the Monetary Policy Committee's decision to increase the base rate, Lloyds said it expected a NIM of 270 basis points, up from 250, and a return on tangible equity greater than 11 per cent this year.

https://www.google.com/amp/s/www.thisismoney.co.uk/money/investing/article-10797811/amp/Should-invest-banks-amid-higher-inflation.html

According to the spread betting firms, the UK blue-chips benchmark will open 43 points to the good at 7.439.98 – carrying where it left off on Friday

According to the spread betting firms, the UK blue-chips benchmark will open 43 points to the good at 7.439.98 – carrying where it left off on Friday

May 23 (Reuters) - Asking prices for houses in Britain surged again in May, pushed up by a lack of new homes coming to the market rather than strong demand which looks set to fade as the cost-of-living crunch tightens, a survey showed on Monday.

Property search website Rightmove said asking prices for property put on sale between mid-April and mid-May rose by 2.1% after a 1.6% rise the month before. It marked the biggest May increase since 2014.

https://www.reuters.com/world/uk/asking-prices-uk-homes-see-biggest-may-jump-since-2014-rightmove-2022-05-22/

Banks are setting aside billions of pounds to cover the steep rise in bad debts. Analysis by stockbroker AJ Bell for The Mail on Sunday found provisions for impaired loans at Lloyds, which accounts for about a fifth of lending in the country, are expected to rise from £820million this year to more than £1.3billion by 2024.

https://www.google.com/amp/s/www.dailymail.co.uk/news/article-10841239/amp/Banks-set-aside-cash-cover-bad-debts-brace-7billion-hit-unsecured-loans.html

Nice rise today up 8.33%, a surprise interest rate cut in China appears to have lifted global market sentiment

LTI

"For about the 300th time - the market determines what valuation to place on Lloyds banking group on a daily basis"

interest rates and buybacks increase earnings per share, higher earnings drives share price application

Markets are forward looking 6 to 12 months maybe this is why Lloyds is still trading in the 40p range, the outlook for the UK economy isn't good rates and buybacks haven't had any affect on share price