Seven days in the Square Mile

Pressure grew on Bank of England Governor Mark Carney to raise interest rates after CPI inflation rose to 3%, its highest level in more than five years. Meanwhile, official figures showed that the pay squeeze on Britain’s workforce has continued for the sixth month in a row – though unemployment is at a 42year low. In the three months to August, inflation outstripped average regular wage growth, with the result that real pay fell 0.4%. The FTSE 100 hit a new record high before falling back. The ONS reported that Britain is half-atrillion pounds poorer than had been thought. As a result of falling foreign direct investment in UK companies, and a smaller reserve of foreign assets, the nation’s stock of wealth has collapsed from a £469bn surplus to a net deficit of £22bn – comparable to the loss of a quarter of UK GDP. The European plane-maker Airbus said it would take a majority stake in Bombardier’s Cseries programme. The agreement strikes a blow against its US arch-rival Boeing, which has relentlessly pursued both Airbus and Bombardier through trade disputes; it should also help safeguard thousands of jobs in Belfast. France’s PSA Group announced the loss of 400 jobs at Vauxhall’s Ellesmere Port plant, months after sealing its deal to buy the marque from General Motors. Poundland reported a “noticeable lift” in sales as customers sought to spend the old round £1 coins before they were officially withdrawn.