Amid grim economic forecasts in Britain, the FTSE 100 slipped down 0.22% and the FTSE 250 slid 1.95%. A new forecast by analysts at Citi predicted that inflation would rise as high as 18% and that the Bank of England may have to raise interest rates as high as 7% in response.
Meanwhile, investors are looking to a meeting of central bankers in Jackson Hole, Wyoming, with a keynote from Jerome Powell, head of the Federal Reserve System, America’s central bank, which will offer information on U.S. GDP figures, and could offer hints on how much America is likely to raise interest rates.
‘The FTSE 100 began Monday in a downbeat mood ahead of what could prove to be a critical moment for markets at the end of this week,’ said AJ Bell investment director Russ Mould.
Cineworld plunges again
Cineworld (GB:CINE)stock plunged 24.3% on the news that the embattled cinema chain is considering bankruptcy as it struggles with $5bn of debt. The chain has blamed a lack of upcoming blockbusters for its poor performance in recent months.
Hollywood has released fewer blockbuster films this year, after COVID restrictions disrupted production on several major films.
Wizz Air Holdings (GB:WIZZ) fell 9.89% after the company’s CFO Jourik Hooghe exited the budget airline to see ‘opportunities outside the company’.
The European carrier hopes to find a turnaround following a loss of €285m.
Business news today
Privatising water was never going to work (FT)
Sources say Business Department is war-gaming Seventies-style scenarios for this winter (Daily Mail)
Russia pushes gas prices to new high (The Times)
