Weekly Espresso

In the recent presidential debate, President Joe Biden’s faltering performance, marked by blunders and misstatements, raised concerns about his age and ability to compete against Donald Trump.

The Bank of England decided to maintain its benchmark interest rate at 5.25%, but the meeting minutes hinted at a potential shift towards easing, with some members of the Monetary Policy Committee expressing a leaning towards rate cuts soon. This triggered market movements, pushing the probability of a rate cut in August above 50%. Governor Andrew Bailey’s remarks leaned towards a dovish stance, emphasising the significance of recent economic data.

The French bond market experienced increased volatility due to political uncertainty. French securities declined on Thursday amid concerns that Marine Le Pen’s National Rally party might implement looser fiscal policies if it wins the upcoming elections. This has caused a significant rise in the spread between French and German debt yields, reaching levels not seen since the European debt crisis in 2011.

Tenants in the United Kingdom experienced a modest respite from escalating rental costs in April, as competition for properties diminished from its most intense levels in years, according to Zoopla. The annual inflation rate for new leases decreased to 6.6%, marking the lowest increase since October 2021.

Donald Trump was found guilty in the first criminal trial of a former US president in the nation’s history. The verdict could influence the political landscape ahead of November’s US election, with sentencing scheduled for July 11, just days before the GOP convention.

UK Prime Minister Rishi Sunak has announced a general election for July 4, giving him just six weeks to convince voters to re-elect his government. The announcement led to increased volatility in the pound. Sunak’s strategy hinges on economic improvement, while Labour leader Keir Starmer argues that the next government will inherit the worst economic situation since World War II.