GCIUK economic growth to rebound in late 2024
Taking Stock on Tuesday 23rd January 2024
UK economic growth to rebound in late 2024, leading forecaster says
The UK economy will benefit from falling inflation and lower interest rates in the second half of the year, boosting growth and allowing the government to offer pre-election giveaways, according to a study by leading forecaster the EY Items Club.
An increase in gross domestic product of 0.7% in 2024 made in the firm’s autumn forecast was upgraded to 0.9%, while the UK economy is now forecast to grow by 1.8% in 2025, up from the 1.7% predicted in October.
Financial markets expect the situation to improve once inflation – which averaged above 6% in 2023 – falls as expected to 2% by April, and for the Bank of England to begin cutting interest rates in June.
A report by Lloyds Bank found that seven out of 14 sectors of the economy reported growing demand, as measured by new orders, in December 2023, more than twice as many as in November 2023.
Companies discussed on “Taking Stock” today:
04:00 Vast Resources #VAST
10:50 NetScientific #NSCI
12:08 Crimson Tide #TIDE
13:08 Big Technologies #BIG
13:40 boohoo #BOO
14:20 Quiz plc #QUIZ
15:15 Atlantic Lithium #ALL
17:30 Brave Bison #BSSN
19:00 Chapel Down #CDGP
20:00 H&T #HAT
24:15 Yu Group #YU.
25:40 Cornerstone FS #CSFS
28:48 Eleco #ELCO
29:50 Ocean Harvest Technology #OHT
30:35 Watkin Jones #WJG
31:20 Crest Nicholson #CRST
32:20 Vistry #VTY
34:00 Poolbeg Pharma #POLB
35:00 Fraser Group #FRAS
37:57 Hvivo #HVO
TOP BUSINESS STORIES
UK government borrowing falls to £7.8bn in December, boosting Jeremy Hunt’s tax cut hopes
Britain’s monthly government borrowing fell last month, potentially giving chancellor Jeremy Hunt more room for tax cuts in the March budget.
Figures just released by the Office for National Statistics show that the UK’s public sector net borrowing (excluding public sector banks) fell to £7.8bn in December.
That’s the lowest deficit for any December since 2019, just before the Covid-19 pandemic, and half as much as the UK borrowed to balance the books in December 2022.
It’s also a lot lower than forecast; economists polled by Reuters had expected public sector net borrowing, excluding state-owned banks, to hit £14bn.
China "weighs stock market rescue package backed by $278bn"
In the financial markets, shares have rallied in China today on reports that Beijing is considering taking steps to stabilize the slumping Chinese stock market.
Bloomberg reported that policymakers are seeking to mobilize about 2 trillion yuan ($278 billion), mainly from the offshore accounts of Chinese state-owned enterprises, as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link
They have also earmarked at least 300 billion yuan of local funds to invest in onshore shares through China Securities Finance Corp. or Central Huijin Investment Ltd., people familiar with the situation said.
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