Inflation in the United Kingdom jumps to its highest level in four decades

Inflation in the United Kingdom rose more than expected after it reached 11.1%,
its highest level in 41 years,
and this reflects the extent of pressure that the Bank of England is currently exposed
to in order to complete the process of raising interest rates.

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The Central Bank intends to further raise interest rates

Warren Buffett acquires a $5 billion stake in TSMC

High inflation pushes US stocks and bonds up

The Central Bank intends to further raise interest rates

The consumer price index in the Kingdom rose,
as it came stronger than the expectations of the Central Bank,
which amounted to 10.9%, in addition to a signal from the National Statistics Office,
which confirmed the leadership of food, fuel, and energy prices for the recent rise

This is considered inflation now in the United Kingdom is five times greater
than the central bank’s target, which amounted to 2%,
and this paves the way for the Bank of England to continue raising interest rates,
while the central decided to raise the standard lending rate by about eight times
during the past year in order to confront The rise in the cost of energy,
while the bet is still on the Central Bank to raise interest rates
by another 50 basis points during the next month, by about 3.5%.

The pound sterling recorded an increase of 0.3% in its transactions,
reaching levels of 1.1900 against the dollar, after the issuance of this data.

Electricity price crisis

An increase of about 27% in the prices of electricity and natural gas
after a decision by the British Energy Authority that allows an increase in the ceiling of bills
with the increase in wholesale prices. Purchasing for consumers and companies,
while gasoline prices decreased by about 0.5% in the month,
after they were higher than a year ago

The market is awaiting the testimony of the Governor of the Bank of England,
Andrew Bailey, regarding inflation during the day, Wednesday,
but the Treasury Secretary is also scheduled to determine
the necessary measures for energy support by the government,
while Hunt said in Parliament that they are in the process of studying all these problems.

Warren Buffett acquires a $5 billion stake in TSMC

Berkshire Hathaway, owned by billionaire Warren Buffett,
announced the acquisition of a stake worth about $5 billion in Taiwan Semiconductor Manufacturing,
and according to the group, it has acquired up to 60 million shares in the company,
this had a great deal On the company’s shares, which rose after the deal,
and the investor, “Warren Buffett,”
believed that the impact of the losses of major chip companies around the world,
which amounted to $ 250 billion of their shares,
indicates that they have now reached the bottom.

The Taiwanese company is the main supplier of semiconductors to companies such as Nvidia Corp.
and Qualcomm Inc. It has also become the exclusive supplier of chips to Apple.

TSMC share price increase

The purchase deal in which Buffett acquired 60 million shares was at a price lower
than the current share price, which jumped to $72.80,
an increase of about 9.4% after the deal was announced.
This is the largest daily increase recorded on the stock in two years.
Warren Buffett was He always felt unwilling to invest in the technology sector
because he was not very aware of what was going on in it,
but this view changed in the late years after the decision to allocate
a larger part of his investments in technology companies,
specifically the chip industry, which is considered one of the most important sectors
that achieve a continuous growth rate over the years. Coming,
due to its necessity in the manufacture of many industries such as electric cars and artificial intelligence

And the shares of “TSMC” company had declined by about 28%
during the current year before the announcement of the deal,
due to the decline in global demand for chips as a result of the economic downturn,
the concern of investors, and the increase in supply,
while the company announced a decline in spending by about $ 36 billion during This year

High inflation pushes US stocks and bonds up

The recent results that emerged indicated that inflation had reached a peak
in the United States from the rise in US stocks,
with the increase in expectations of a rise in US stocks,
and the possibility of calming the pace of the Federal Reserve by raising interest rates,
and treasury bonds also recorded an increase with the decline of the US dollar

The “Standard & Poor’s 500” index achieved gains of about 0.9%,
while the “Nasdaq 100” index, which reflects the evaluation of the performance of technology stocks,
closed at its highest levels since the 19th of last September.
Stock prices rose, but the gains that were achieved after the special report were abandoned.
With Russian missiles that penetrated Polish territory, which is a member state of NATO

Oil and commodity prices recorded a rise that reached a peak due to geopolitical risks coming from Europe,
while Poland said that the explosion occurred near the eastern borders of Ukraine.

Market appetite for risk

The markets in recent days had reached a stage of appetite for great risks ,
contingent on the consumer price index data in the United States ,
which was issued less than expectations ,
and expectations also indicate that it will contribute with the Federal Reserve to further raise interest rates ,
which amounted to half a percentage point ,
while A group of officials was able to worry about the pace at which interest rates are being raised,
but at the same time they are directing the bank to take more measures in order to confront inflation.

artıcle name Inflation in the United Kingdom jumps to its highest level in four decades

Inflation in the United Kingdom jumps to its highest level in four decades

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