Seven days in the Square Mile

The Week Middle East - - Business -

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.

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