UK CPI Rises To 3.8%, Stock Market Weakness, More

Listen for the latest from Bloomberg news

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
News when you want it with Bloomberg News Now, I'm an.

Speaker 2 (00:03):
At Edwards and I'm Stephen Carroll.

Speaker 1 (00:05):
UK inflation has accelerated to an eighteen month high. According
to the latest data, consumer prices rose three point eight
percent year on year in July, marking an increase from
the previous month and the fastest paced since January twenty
twenty four. The figures aud to evidence that firms are
responding to the government's recent tax and minimum wage increases
by passing on extra cost to consumers. Melanie Baker is

(00:27):
a senior economist at Royal London Asset Management.

Speaker 3 (00:30):
I think if I look at where the surprise comes from,
it seems to be airfes and we know that's a
very volatile component. Looking at the ONS write up, it
seems to have been affected by the different timing of
school holidays and when they took the price readings for
things that I just I'm not getting too carried away
with this number.

Speaker 1 (00:50):
Melanie Baker, speaking there as traders further trimmed bets on
Bank of England rate cuts following the CPI print. The
probability of another reduction by December is now around forty
two percent, as resurgent inflation collides with a cooling labor market.

Speaker 2 (01:04):
Global stocks have paused their record breaking run as concerns
grow that the rally of recent months has advanced too
far and too fast. The sell off was driven by
big tech companies on Wall Street yesterday, with the Nastak
closing down one point four percent. Futures are pointing to
further losses today. That's ahead of Nvidia reporting earnings next week.
Daryl Kronk, CIO for Wealth and Investment at Wells Fargo,

(01:25):
says he remains bullish on the techcent sector because of
their earnings growth.

Speaker 4 (01:29):
You've got to go where growth resides, and there's just
no doubt that that's where the growth is. You saw
in the latest second quarter earnings numbers. You know, you
take the seven largest stocks, their earnings growth were twenty
nine percent. If I take X, those earnings growth was
like three and a half.

Speaker 2 (01:45):
Wells Fargo's Darl Kronk speaking to Bloomberg earlier, as traders
are firming up bets on a September interest rate cuts
from the Federal Reserve.

Speaker 1 (01:53):
European countries now developing a plan to send British and
French troops to Ukraine as part of a potential peace
deal between Kiev and leaders are said to be looking
to leverage President Trump's support for a package of security
guarantees that would involve European boots on the ground with
possible US air support. Here's what the US President told
Fox News.

Speaker 5 (02:13):
When it comes to security, they're willing to put people
on the ground. We're willing to help them with things,
especially probably if you talk about by air, because as
nobody has kind of stuff we have, really they don't have.
But I don't think it's going to be a problem.
I think if a deal is made, you know, famous
last words, right, But I think if a deal has made,
I think Russia's had it. They've all had it and

(02:33):
for a very extended period of time. I don't think
there'll be a problem. But so there'll be some form
of security. It can't be NATO because that was that's
just not something that would ever ever happen.

Speaker 1 (02:45):
He couldn't those comments on Fox News Kmas bloomberg Lund.
Trump called Hungary's Prime Minister Victor Auban on Monday after
European leaders pressed him to intervene in Ukraine's stalled EU
membership bit EU leaders say Ukraine's membership is part of
broader security guarantees, but Auburn has described the idea as
quote unnecessary and dangerous.

Speaker 2 (03:06):
The UK government faces legal action from more local authorities
after a council won a court battle to stop a
local hotel being used to house asylum seekers. The Bell
Hotel and Epping east of London has been at the
center of protests in recent weeks, some of which have
turned violent. District council leader Chris Whitbread says the decision
showed the government cannot ignore planning rules.

Speaker 6 (03:27):
We always knew the Bell Hotel was the wrong location
because of its close proximity to schools and other parts
of the community. It was never going to work out.
This is not a victory today. This is a ruling
for common sense.

Speaker 2 (03:41):
With Bred's success raises questions over the government's practice of
using hotels to house asylum seekers Across the UK. The
Labor government's first year in office has seen illegal crossings
of the English Channel rise to a new record high,
stoking public anger about controlling migration.

Speaker 1 (03:56):
Thousands of firefighters, aided by soldiers and aircraft, are continuing
to tackle wildfires across Spain. Although temperatures across the country
have begun to drop in recent days, Spain is still
confronting one of its most destructive fire seasons in recent decades.
The fires have killed four people and burned more than
three hundred and eighty thousand hectares of land, equivalent to

(04:16):
an area more than twice the size of London.

Speaker 2 (04:19):
And the number of CEOs being forced out of their
jobs in the United States is on the rise, and
it's more expensive. According to the independent research provider exec
change dot com, one hundred and thirty four bosses were
pushed out of russell three thousand firms in the past year.
Bloomberg has spoken to compensation consultants, pr experts, and executive
search advisors to try to find the true cost of

(04:39):
firing a CEO. Chase Wilcock has more.

Speaker 7 (04:43):
Get your Calculators out. Bloomberg estimates the median compensation for
a forced out US boss was six point two million dollars,
the sign on fee for their replacement another nine million.
And then there's the new higher pay packet. The one
hundred top earning CEOs accompanies with more than one billion

(05:04):
dollars in revenue are paid twenty two percent more than
last year. According to pay consultant Equila, that's a median
of thirty one million dollars. So factor in the millions
in lawyers, plus payments to the rest of the board,
and the whole exercise is a lot more expensive than
showing the boss the way to the exit in London.

(05:25):
James Wilcock, Bloomberg Radio.

Speaker 1 (05:27):
That's news when you want it. With Bloomberg News Now,
I'm an At Edwards

Speaker 2 (05:31):
And I'm Stephen Carroll, and this is Gloomberg