FT News Briefing New US unemployment claims hit six-month high
Aug 5, 2022
US unemployment claims have surged to a six-month high, indicating a cooling labor market. Meanwhile, the Bank of England raised interest rates amid inflation concerns. European banks are thriving despite fears of recession, reporting strong earnings while facing challenges from rising rates and potential loan defaults. Amidst these economic shifts, the podcast also hints at exciting upcoming business news and solutions in the works.
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Rising Unemployment Claims
- US unemployment claims hit a six-month high, signaling increased firings.
- Layoffs in tech, retail, and crypto contribute, but the labor market remains relatively strong.
UK Economic Outlook
- The Bank of England (BOE) predicts a protracted recession and the worst squeeze on living standards in over 60 years.
- High inflation, potentially reaching 13%, prompted a 0.5% interest rate hike.
Political Implications for the BOE
- UK prime minister candidates debate the Bank of England's mandate.
- Liz Truss, the leading candidate, suggests potential changes, raising concerns about political interference.