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Cheaper food drives UK inflation lower in September

Cheaper food drives UK inflation lower in September

Business
The UK inflation rate fell more than expected in September after hitting a six-month high in August.The Office for National Statistics said the fall to 2.4%, down from 2.7%, was largely driven by lower prices for food and non-alcoholic drinks.The Consumer Prices Index figure surprised economists who had been expecting inflation to fall to 2.6%.The result is expected to ease pressure on the Bank of England to raise interest rates in the near future.Andrew Wishart, UK economist at Capital Economics, said: "With inflation in line with the Bank of England's forecast, and measures of domestically generated cost pressures, such as core inflation and services inflation falling back, this reduces any pressure on the MPC to act again before it can assess the likel...
Europe stocks sharply lower after US and Asia sell-off

Europe stocks sharply lower after US and Asia sell-off

Business
European stocks were sharply down in morning trade after concerns about a trade war and higher US bond yields stoked global investor concerns.In London, the FTSE 100 index of leading UK shares was down more than 1.7% at 7,020.Markets in Asia had plunged to a 19-month low after US shares suffered their worst losses in eight months.The global sell-off came as IMF head Christine Lagarde said stock market valuations have been "extremely high". In Paris, the Cac 40 share index was down 1.6% at 5,122 points, while in Frankfurt the Dax index fell nearly 1.5%.The FTSE 100 and the Cac 40 have fallen to their lowest levels since April, while the Dax is at its lowest since early 2017. ...
Public pensions are paying higher fees for lower returns, Pew study finds

Public pensions are paying higher fees for lower returns, Pew study finds

Finance
Public pension plans are spending more than $ 2 billion a year in fees on high-cost, risky investments to boost returns. But those bets haven't been paying off, according a report Wednesday from the Pew Charitable Trusts. The higher cost comes as public pension fund managers try to make up for a steep shortfall brought by years of underfunding and lackluster investment returns. As of fiscal 2016, the latest data available, state pension funds tracked by Pew had a combined $ 1.4 trillion deficit – up $ 295 billion from 2015 and the 15th annual increase in pension debt since 2000. State public pension plans have assets of...
Pound falls lower against the dollar and euro

Pound falls lower against the dollar and euro

Business
The pound has fallen below $ 1.29 for the first time in almost a year on continuing worries Britain will leave the EU without a trade deal.Sterling also hit a nine-month low against the euro, and was down against the yen and Swiss franc.Bank of England governor Mark Carney said on Friday the chances of a no-deal Brexit were "uncomfortably high".On Sunday, international trade secretary Liam Fox put the odds at "certainly not much more than 60-40". The falls come despite a rise in UK interest rates, which usually pushes up the value of sterling.Since the beginning of the month, the pound has fallen 1.7% against the dollar and 0.8% against the euro. "Some are thinking in the market that the Bank of England raised rates in or...
Trump: US and EU agree to work towards lower trade barriers

Trump: US and EU agree to work towards lower trade barriers

World
The US has agreed to work towards lowering trade barriers with the European Union, Donald Trump said on Wednesday after a meeting with European Commission chief Jean-Claude Juncker.The two would work for zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto goods, he said.They also agreed to increase trade in services and agriculture, including greater US soy bean exports to the EU.The agreements come amid heightened tensions between the US and EU.The two leaders diffused what had threatened to become a trade war between the two blocs, fuelled by tariffs set by Mr Trump on European steel and aluminium exports, and threats to expand the tariffs to cars.The relationship between the US and Europe had been further fr...