Seven days in the Square Mile
Bond markets globally suffered a $1trn rout on fears of “Trumpflation”, but UK inflation put in a surprise fall. The cost of living, as measured by the consumer prices index, fell from 1% to 0.9% last month, helped by evidence that clothing and food retailers are shielding shoppers from the full effect of the weaker pound. The consensus in the City is that the upward trend will continue as the impact of the cheaper pound on the price of imports hits home. Wealth manager Ruffer predicted that inflation could hit 10% in the next five years. Chancellor Philip Hammond prepared to unveil his first Autumn Statement amid reports of tensions with No.10. Hammond had reportedly been planning a “pared-down package” focused on boosting infrastructure and productivity. But the PM, Theresa May, has insisted on more measures to help key voters known as “Jams” – people who are “just about managing”. Facebook and Google announced measures to prevent the spreading of false news online in the wake of the US election result. Google CEO Sundar Pichai said the firm would hire 3,000 more staff in London, doubling its headcount. Vodafone posted a first-half loss of after taking a huge writedown in India. Rio Tinto suspended a senior executive following a probe into the payment of $10.5m to a consultant on iron ore reserves in Guinea. Warren Buffett bought shares in four US airlines: American, Delta, United and Southwest.