Bailey Faces a Grilling, and Summer’s Back: Sunday UK Briefing

2023-09-03 20:19

Hi again. Here’s what we’re talking about heading into the new week. The big talker: Parliament’s back, and

(Bloomberg) --

Hi again. Here’s what we’re talking about heading into the new week.

The big talker: Parliament’s back, and Wednesday’s testimony by Bank of England Governor Andrew Bailey and colleagues to the Treasury Committee is a highlight as traders count down to the bank’s rate decision on Sept. 21. He’s sure to be quizzed on high wage growth that risks feeding through to sticky inflation and making the 2% CPI target a distant dream. Jeremy Hunt is out with a statement emphasizing that the UK is on the way to halving inflation this year.

The big data: The BOE’s Decision Maker Panel survey for August, due Thursday, will provide an update on expectations among businesses. The monthly survey is thought to play a important role in the committee’s thinking. Firms’ medium-term inflation expectations fell sharply in July, posting the lowest value in the series’ short lifespan. Policymakers will probably hope to see expectations stabilizing around that or a lower level in the months ahead.

The big gathering: PM Rishi Sunak joins world leaders in New Delhi for the G-20 summit that starts on Saturday. Downing Street says the goal is to “cement his already-strong relations with allies.” Meeting participants may struggle for consensus on key topics like the war in Ukraine. China’s Xi Jinping plans to skip the gathering for the first time in a major snub for hosts India. Vladimir Putin also has no plans to attend.

The big matches: The US Open moves to the money end. Unseeded Jack Draper kept Britain’s hopes alive with a win Saturday over Michael Mmoh of the US, while Cam Norrie faded against Italy’s Matteo Amaldi and Dan Evans ran into a buzz-saw named Carlos Alcaraz. Katie Boulter was the UK’s final hope in the ladies singles and is out. Emma Raducanu, who stunned the tennis world by winning as a qualifier in 2021, is recovering from surgery on both wrists and one ankle.

The big strikes: The train network was hit by more disruptions as rail workers marked the end of the summer holidays by walking out. The stoppages, which make it hard for many workers to get to the office, contribute to the ghost-town effect in central London. Meanwhile, junior and senior doctors will walk out together on Sept. 20 and Oct. 2-4.

The big heat: Summer has finally arrived, better late than never. The Met Office says a high pressure system is finally in control, with temperatures of 29C or above possible at midweek for the first time since the start of July. Time to fire up the grill and enjoy falling meat prices — or even go for a bike ride and avoid ULEZ headaches.

ICYM Our Big Take: So much for the Chinese century. After years of struggling with the implications of Beijing’s inexorable economic rise, the US and other G-7 nations increasingly see evidence of deep-seated structural problems that will strengthen the West’s hand. Our reporters explain how, from Washington to Rome to Tokyo, the dominant narrative is flipping fast.

And finally, Bloomberg Businessweek’s US national correspondent Josh Green has been shadowing Chris Christie on the 2024 campaign trail, and joins the Big Take podcast to explain how the former New Jersey governor is refashioning his relationship with Donald Trump. Listen on iHeart, Apple Podcasts, Spotify and the Terminal.