Money
Europe is preparing for winter: how can you keep costs down?
Britain is facing a surge in cold weather, with icy conditions and fog expected for much of this week
The UK Met Office has issued a Yellow warning, which means there could be damage to buildings as Britons brace for cold conditions.
Like much of Europe, the UK are bracing for very strong winds on Wednesday, causing disruption to travel and some utilities.
Drivers are also urged to take extra care on the roads, with warnings in place for icy stretches forming on UK roads.
But some residents who are seeking to heat their homes are on edge, as power prices remain high.
Peter Smith is the director of policy and advocacy at National Energy Action, who said the rising cost of living is impacting Britons.
“The average annual bill has almost doubled since this time last year.”
The organisation seeks to close the gaps when it comes to energy affordability. It predicts 6.7 million UK households will be in fuel poverty in the coming months.
This means millions of Britons will be unable to afford living in a warm, dry and safe home.
“So far the milder than usual weather has protected many from the spiralling bills as they haven’t needed to heat their homes as high or as long as usual,” Mr Smith said.
How to keep warm without blowing your bill
UK Prime Minister Rishi Sunak has urged people to make their own decisions, as he met with world leaders in tropical Bali last week.
“There are things that we can do—all of us—to improve the efficiency with which we use energy, to be careful about it,” he said.
For example, an efficient heater; taking advantage of the sun, where appropriate; and rearranging furniture are some cost-effective methods to reduce the burden on gas and energy bills.
In addition, there are some other cheap ways to reduce dependence on gas and electricity bills, as the temperature continue to plunge.
- close off rooms you’re not using
- lower the temperature of heating
- make sure windows are fully closed
- block cold drafts from under doors using door snakes or carpet.
The UK Government has placed a cap freeze on energy prices.
This means households will pay an average £2,500 on their energy bills. But there is a catch: if households use more, they pay more.
National Energy Action believes an additional 2.2 million homes could be in fuel poverty, when compared to the same time last year.
Why are energy prices so high?
As demand increases, so too does the cost of heating homes.
But there is another factor, which has sent prices rising across Europe: the war in Ukraine.
However, countries are struggling to find alternative supplies after sanctioning Moscow for the ongoing conflict.
“Putin’s abhorrent war in Ukraine, and rising energy prices across the world are not a reason to go slow on climate change. They are a reason to act faster.”
RISHI SUNAK, UK PRIME MINISTER
Germany halted the Nord Stream 2 pipeline, which was expected to double the amount of Russian gas shipped to Europe.
In July, Russia cut the amount of gas pumped through Nord Stream 1 to 20 per cent capacity.
Money
Inflation rise reduces chances of Reserve Bank rate cut
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.
The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.
The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.
Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.
The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.
Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.
The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.
Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.
Economic Pressures
Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.
Money
Wall Street hits record highs on low inflation
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.
Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.
Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.
This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.
The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.
Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.
Market Trends
Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.
Trading volume was 19.04 billion shares, lower than the average of the past 20 days.
Money
US stocks face tests from Tesla, Netflix earnings
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.
Market Volatility
Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.
Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.
The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.
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