Follow Real Estate Jun to see what big and small things happened today:
- The Bank of England announced that it will end its emergency support for pension funds on Friday, and then the pound to the US dollar plummeted!
- Charles III King will hold a coronation ceremony on May 6 next year. Due to economic difficulties, spending will be reduced and the ceremony will be simplified.
- Official data shows that the UK economy stagnated in August, but it will not shrink due to the difficulties of factories and consumer-oriented businesses. After receiving the report, British police raided the Oxford Street souvenir shop in London and seized more than 14,000 counterfeit luxury goods from two stores, estimated to be worth 215,000 pounds.
- Mars & Spencer announced that it will close 67 stores in the next five years
[Bank of England announced that it will end its emergency support for pension funds this Friday]
Bank of England announced that it will end its emergency bond purchase plan to support pension funds this Friday, and then the pound to the US dollar plummeted, and the market is ready to face more turmoil.
UK
Local time Last night, Central Bank Governor Andrew Bailey warned the staff who manage pensions for millions of people, "We have 3 days left to sort out the financial situation." After this week, there are no plans to help troubled pension funds.
This plan is part of the central bank's financial stability operation, not a tool for monetary policy , so it must be temporary.
Previously, the central bank urgently purchased bonds to stabilize their prices and prevent the risks faced by pension funds.
has been strongly opposed as a result, and everyone has called on the central bank to provide more support to companies that manage pensions, at least until the end of the month or longer.
In recent weeks, after being frightened by the mini budget of Chancellor Kwasi Kwarteng, the central bank has been cleaning up the mess, buying Treasury bonds and injecting £65 billion to stop the market crash.
At the end of last month, the 30-year Treasury yield rebounded to 5%, which could weaken pension funds, so urgent action was taken.
However, this support will not be extended until after Friday, October 14, which also caused the pound to plummet.
In order to prevent the pound from falling, this morning, the central bank announced that it would buy more gold-edged bonds, but this move did not play a big role in promoting the pound. The pound exchange rate rebounded slightly, while the yield on gold-edged bonds only fell slightly, and stocks of large pension funds fell. The outside world is worried that this situation will spread.
Critics pointed out:
Under his leadership, when inflation was severe, no interest rate hikes were raised in time. The central bank's mission is to achieve the 2% inflation target, but its actions are not as powerful as expected in curbing price increases. In September alone, the benchmark rate of was increased by 0.5%, rather than the 0.75% expected by the outside world.
In order to control the situation, the British Chancellor of the Exchequer announced that he would announce the interim fiscal budget on October 31, nearly one month ahead of the day when the Monetary Fund Committee raised a sharp interest rate on November 3.
At the same time, this year's IFS predicts that the UK's government borrowing will reach nearly £200 billion this year, double the last forecast of £99 billion.
So, in a report today, the Chancellor of the Exchequer said he would have to cut £60 billion in public spending to control the amount of the fiscal deficit. Other departments are expected to face significant funding cuts as the NHS and defense budgets are protected.
In this regard, Daily Mail editor ALEX BRUMMER commented:
UK's reputation in a stable currency is being swept away, which makes us all worried.
Historically, the UK has always been known for its stable currency.But the market's response after the Chancellor's mini budget was released, with gold-edged bonds being sold in large quantities and their value plummeted, prompting interest rates to rise. British Phnom Penh Bond, the long-standing bond considered the safest investment, has also been affected. This directly leads to a shock in the pension fund market. Because pension fund companies hold many gold-edged bonds.
But now, the central bank's support for pension companies is about to end, which will affect pensions for hundreds of people.
At present, the exchange rate of the pound to RMB is
[King of Charles III will hold a coronation ceremony on May 6 next year]
King Charles III will hold a coronation ceremony on May 6 next year. Because the UK is in a period of economic difficulties, spending will be reduced and the ceremony will be simplified.
According to the statement of Buckingham Palace , the Archbishop of Canterbury will preside over the ceremony at Westminster Abbey . This is a traditional crowning ceremony for the king, which has been held here for nearly a thousand years.
At that time, King Charles's wife Camilla will also be crowned as the queen.
But compared with the 1953 Queen Elizabeth II 's coronation ceremony, the guest list may be reduced by thousands, with the ceremony being shortened by about an hour.
instead of the 3 hours before the Queen's coronation ceremony. At that time, the ceremony was the first time to be broadcast on television, and 27 million people watched the ceremony in the UK alone.
Kensington Palace spokesperson said:
This coronation ceremony will reflect the current role of the British monarch and look forward to the future while rooted in a long tradition.
[British economy fell into stagnation in August]
National Bureau of Statistics Official data shows:
UK's economy fell into stagnation in August due to factories and consumer-oriented businesses falling into trouble. In the three months ended in August, GDP also fell by 0.3%.
Prices are rising at the fastest pace in 40 years, swallowing people's budgets and exceeding wage growth.
The central bank had previously predicted that the UK would fall into a recession by the end of this year.
[Police raided Oxford Street Tax evasion and money laundering store]
After receiving the report, British police raided the Oxford Street souvenir shop in London and seized more than 14,000 counterfeit luxury goods from two stores, estimated to be worth 215,000 pounds.
Previously, the police had received reports that these Oxford Street stores, which were in the name of souvenir shops and candy shops, are actually the centers for selling fake goods and laundering money.
In response, Westminster City Council head Cllr Adam Hug said:
The latest raid on candy and souvenir stores has seized £215,000 of suspicious counterfeit and unsafe goods - from illegal and powerful e-cigarettes to famous brand counterfeits, including Gucci and Rolex .
Stocks of such stores on Oxford Street have surged in recent years and we are currently investigating 30 candy and souvenir stores that we believe have £8 million in commercial tax evasion.
[In September, England and Wales house prices rose by 9.8%]
After the mini budget was released, the mortgage situation changed fundamentally.
Acadata data shows that in September, the annual growth rate of house prices in England and Wales was close to 10%, at 9.8%.
House prices have risen in all 10 major regions over the past 12 months, with housing prices rising in nine of them reaching double-digit numbers, with average housing prices hitting record highs.
In this regard, the outside world believes that this is the tranquility before the loan interest rate soared and before the storm.
[Marks and Spencer closed 67 stores in the next five years]
Due to the rising costs and a difficult economic environment, Marks and Spencer announced that it will close 67 stores in the next five years.
Although the time is currently within the next 5 years, it is possible to achieve this goal in 3 years.
MarcShop has not confirmed which stores will be closed. In response, Steve Rowe, CEO of Marks & Spencer, said:
The epidemic and Brexit have brought adverse factors to the supply chain. We will reduce large department stores, add small Martha convenience stores, and provide fresher food.
or above is our content daily report today. Please continue to pay attention to Real Estate Jun. We will continue to bring you the latest and most informative UK reports.
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