The world this week--Business
Britain’s annual rate of inflation rose to 9.4% in June, from 9.1% in May.
Motor-fuel prices were up by 42%, the highest rate since the current series of data began in 1989, the cost of food increased by nearly 10% and clothing by 6%.
The price of second-hand cars, a big contributor to inflation a year ago, continued to fall.
The figures add pressure on the Bank of England to bring in bigger increases to interest rates.
Andrew Bailey, the bank’s governor, said a rise of half a percentage point was “on the table” for its next meeting on August 4th.
The London Stock Exchange saw its biggest stockmarket debut in a decade.
Haleon, a spin-off from GlaxoSmithKline, began trading with a market capitalisation of ￡30.5bn ($36.4bn).
It is a rare example of a significant listing in London.
In recent years the LSE has struggled to attract new entrants and compete with the listing sprees in Hong Kong and New York.
House sales in America fell sharply again in June, according to the National Association of Realtors (the tally excludes newly built properties).
But the median price of a home climbed to a new record of $416,000, suggesting that housing affordability is not just a problem confined to America’s big cities.
In the South prices were up by 17%, year on year.
Mortgage rates are rising; the average 30-year fixed-rate mortgage is around 5.5%, up from 2.9% a year ago.
Mortgage applications are at their lowest level since 2000.
Bank of America’s net profit fell by 32% in the second quarter, year on year.
America’s other big banks—Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley—have also reported double-digit drops in profit.
All reported big declines in revenue from investment banking, but income from trading was up.
Netflix said it lost a net 1m subscribers worldwide in the second quarter, or about 0.5% of its user base.
The number was less than the 2m it predicted three months ago, when it reported its first drop in customers for a decade, causing its share price to plummet.
It added users in Asia, but lost 1.3m in the United States and Canada.
Revenue grew by 8.6%, year on year, more slowly than in recent quarters and far from the 19.4% growth in the same quarter of 2021.
Netflix forecast that growth would slow again in these three months to 4.7%, but it blamed a large part of that on the strength of the dollar, because 60% of its revenues now come from outside America.