Monday, 14 June 2021
US consumer inflation highest since 2008, as initial jobless claims hit pandemic low – as it happened
Rolling coverage of the latest economic and financial news
- Latest: US initial jobless claims lowest since March 2020
- US CPI jumped to 5.0% in May
- Consumer prices rose 0.6% month-on-month
- Core inflation rose 3.8% y/y, fastest since 1992
- Energy and used car prices have jumped over last year
Earlier:
- ECB presses on with bond-buying programme
- Bank regulators say bitcoin should face toughest bank capital rules
- Plan would mean banks holding enough capital to cover losses in full
Time to wrap up. Here’s a quick recap
US consumer prices increased by the most in nearly 13 years in May, year-on-year, as rising demand, supply chain bottlenecks, and the ‘base effect’ from last year’s lockdown push up inflation. Energy, used cars, flights and clothes all pushed CPI up by 5.0%, higher than expected.
Core inflation also surged, hitting 3.8% for the first time since 1992. But Wall Street rallied, and bond yields remained calm, as investors showed confidence that the surge would be temporary.
In a boost to the recovery, the number of Americans filing new unemployment claims hit a new pandemic low. Just 376,000 ‘initial claims’ were submitted last week, as firms held onto staff amid the scramble to fill vacancies.
The European Central Bank pressed on with its bond-buying programme, pledging to keep running it at a faster pace than early this year.
It also lifted its growth and inflation forecasts, saying the economic outlook had improved.
The world’s top banking regulators have called for crypto assets such as bitcoin to face the toughest capital regulations, meaning banks would need to hold enough capital to cover losing all their money.
The Basel Committee on Banking Supervision said crypto assets have raised many concerns, from consumer protection and financial stability, to money laundering and terrorist financing, and their carbon footprint.
Their report came after it emerged JBS, the world’s biggest meat processor, has paid an $11m (£7.8m) ransom after a cyber-attack shut down operations, including abattoirs in the US, Australia and Canada.
BT has a new biggest shareholder, with Altice taking a 12.1% stake in the UK telco:
My colleague Nils Pratley thinks Altice’s Patrick Drahi intentions may not be alarming:
Vote of confidence in the company? That’s always a board’s default spin on events when a billionaire buys a large stake, purrs politely about management but is slightly mysterious about his long-term intentions. The pitch is rarely convincing because billionaires are not generally the type to sit back and simply collect a stream of dividends. They tend to want something.
It’s too soon to be confident about the motives behind Patrick Drahi of Altice’s purchase of a 12.1% stake in BT, worth £2bn. But, on this occasion, the non-threatening interpretation may be correct. Or, at least, it looks the most likely line for a while.
The number of workers on furlough has hit a new low, with 7% of the workforce on the Coronavirus Job Retention Scheme last week. Job vacancies are up, including in hospitality.
Supermarket chain Morrisons has been hit by a stinging shareholder revolt, over the award of millions of pounds in bonuses to executives who missed profit targets during the pandemic.
The UK aviation sector has warned that airports are likely to lose at least £2.6bn this summer as the “chaotic” Covid traffic light system halts international travel.
Investors controlling $41tn (£29tn) in assets have called for governments around the world to end support for fossil fuels and set targets for rapid reductions in carbon emissions to limit the damage from global heating
A report has warned that small drugmakers and biotech firms that are developing the bulk of new antibiotics need far more financial support.
The US drugmaker Regeneron, whose Covid treatment was hailed as a “cure” by Donald Trump last year, has come under fire from two influential shareholder advisory groups over “excessive” payouts made to its top executives ahead of its annual meeting on Friday.
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