THE Pound has suffered its longest losing streak since the early days of the pandemic, as markets bet interest rates will not spike as high as feared.
Traders are now betting the base rate — currently 5 per cent — will hit a peak of 6 rather than 6.5 per cent.
The stance has knocked sterling for seven days in a row, the worst run since March 2020.
The currency slip came on the back of figures showing British private companies had their slowest growth in six months.
The firms reported that interest rates had started to bite.
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The slowdown in the economy was revealed in the closely watched purchasing managers index, which gives an indication on the number of new orders received by companies and their ability to raise prices.
The PMI index fell to 50.7 per cent from 52.8 per cent, surprising economists who had been expecting no change.
Chris Williamson, chief business economist at S&P GLOBAL, said. “Rising interest rates and the higher cost of living appear to be taking an increased toll on households, dampening a post-pandemic rebound in spending on leisure activities.”
He said the survey would “reignite recession” warnings.
The slowdown will also be closely watched by the Bank of England, which will make a decision next week on how much it has to keep raising rates to bring down stubborn inflation.
At the start of July, markets were betting the Bank would have to be aggressive.
But now 68 per cent of traders reckon next week’s hike will be just 0.25 per cent rather than 0.5 per cent.
Cooler inflation figures have bolstered the view that the Bank’s efforts are finally working after 13 rate hikes.
Investigating bias
JUST 2 per cent of funding from venture capital firms goes to businesses founded by women — and even less to ones set up by ethnic minorities, MPs have found.
Harriet Baldwin, who heads the Treasury Committee, said: “Given public funds play a key role in the success of the UK’s venture capital sector, more must be done.”
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The Treasury has recently launched a “Sexism in the City” inquiry to investigate the barriers faced by women in finance — including claims of sexual harassment.
A super six months
PRICE comparison website MoneySupermarket has been boosted by more people shopping around for better credit card deals.
Sales at the firm have risen by 11 per cent to £213.8million in the past six months, although it has been hit by a mortgage market slowdown.
The firm said it did not expect to make money from its energy division for the rest of the year as the price cap has limited competition in the market.
Telecom tie-up no big deal
THE boss of phone network provider Vodafone says its planned merger with rival Three should overcome any regulatory hurdles.
Chief Margherita Della Valle said the deal should go ahead — despite fears over national security risks and hiked prices.
Vodafone argues that its planned Three tie-up would be good for customers and allow more investment in its network.
And Ms Della Valle said that as both companies already operated in the UK and had security clearances, uniting them shouldn’t be problematic.
But worries around Three’s Hong Kong-based billionaire owner Sir Li Ka-shing persist.
Vodafone has already raised customer contracts by 14.4 per cent compared with a year ago, as telecom firms are able to increase bills by adding 3.9 per cent to inflation rates.
The higher prices meant Vodafone’s UK arm grew sales by 5.7 per cent, despite losing 66,000 mobile customers.
Sales Stoked
ENGLAND cricket kit-maker Castore has enjoyed a Bazball boost despite the Aussies retaining the Ashes.
The sportswear firm, founded by brothers Tom and Phil Beahon in 2016, said cricket sales have risen by a fifth during the Test series — headed by the bucket hats favoured by captain Ben Stokes.
After selling out completely, the £25 titfers are now being flipped and resold on eBay for £60.
Castore has grown rapidly after striking kit deals with Premier League sides Newcastle United and Aston Villa, as well as the McLaren Formula 1 team.
It was ranked the second fastest-growing company in the UK after trebling sales to £115million last year and it hopes to grow revenues by another 100 per cent this year.
