Prices in U.K. stores are rising at a record pace in a sign that the cost-of-living crisis is far from over.
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U.K. retail sales volumes were up 0.5% on the prior month in April, the Office for National Statistics said Friday.
Economists polled by Reuters expected a 0.3% rise following a 1.2% decline in volumes in March.
However, volumes were down by 3% from the year before as the amount spent by consumers rose by 4.7%, showing the impact of inflation on shoppers.
Ashley Webb, U.K. economist at Capital Economics, said better weather, rises in state pension, welfare payments and minimum wage, and a government cost-of-living payment to low-income households likely boosted the monthly figure.
“Overall, while the outlook for retail sales appears to be improving, we expect further rises in interest rates, from 4.50% now to a peak of 5.25%, and for them to stay high until late next year. That will mean real consumer spending is more likely to decline later this year than rise,” Webb added.
— Jenni Reid
Parts of the market are in overbought territory, but Morningstar’s Dave Sekera says some stocks that the firm is bullish on are still trading at a discount to its fair value estimates.
They include one tech giant and a major U.S. bank.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Earnings season is over, and Goldman Sachs has identified three stocks with major upside potential.
In the first quarter, the investment bank said, investors focused on the health of the global consumer and post-pandemic growth balancing with increased margins. However, looking ahead, it expects investors to focus on large companies with profitable business models.
Based on their first-quarter results, Goldman expects shares of three companies it identified to rise by more than 75%.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Congressional leaders and President Joe Biden were close to a preliminary agreement to raise the debt ceiling on Thursday, according to a report from Reuters citing people familiar with the matter.
Progress between Biden and House Speaker Kevin McCarthy is pinned to $70 billion in discretionary spending, the report said.
— Brian Evans
Boston Federal Reserve President Susan Collins thinks the central bank where it stop increasing interest rates.
In a speech delivered Thursday to graduates from the Community College of Rhode Island, Collins indicated she’s seeing “signs of moderation” from inflation that could negate the need for future hikes.
“I believe we may be at, or near, the point where monetary policy can pause raising interest rates. This will provide an opportunity to more fully assess the impact of the actions taken to date and the general tightening of credit conditions on economic activity,” she said in prepared remarks.
Markets pricing, however, has shifted, with the expectation now that the Fed will raise a quarter percentage point by the July meeting.
—Jeff Cox
Given how much the subject of immigration dominates British political life, it is remarkable how little people know about what it actually takes to come to this
All life goes into a book. Unless it’s a kiss’n’tell, this truth may bypass the reader. A study of steam trains or tax systems or, in my case, the Russian
A Eurosceptic Swedish MEP today praised Brexit as 'inspirational' and branded the EU a 'union no voter wants' - as calls for Sweden to reassess its relationship
UK Government plans price cap on 'basic' food Image: Davizro Photography / Shutterstock.com. The UK
