LONDON’S BUSINESS NEWSPAPER
THAT WAS THE YEAR THAT WAS THE BEST MOVIES AND MUSIC FROM THE LAST 12 MONTHS P17 THURSDAY 15 DECEMBER 2022
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SUPER LEAGUE HAS SCHEME BEEN GIVEN FINAL NAIL? P18
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FREE CRYPTO CRUNCH
Binance tries to bring calm amid sell-off CHARLIE CONCHIE
PAST THE PEAK? INFLATION SLIDE SETS THE STAGE FOR BANK RATE DECISION LATER TODAY
JACK BARNETT THE CITY cheered fresh figures out yesterday that revealed this year’s historic inflation surge may have turned a corner. Prices accelerated 10.7 per cent over the year to November, down from a 41year high rate of 11.1 per cent in the previous month, a steeper fall than expected, according to the Office for National Statistics (ONS). The pace of price rises fell to 0.4 per cent over the last month and core inflation, seen as a more accurate measure of underlying price pressures,
dropped to 6.3 per cent annually, also below the consensus forecast. The ONS’s figures signal the worst of the inflation drive could be coming to an end and that the rate is on course to steadily fall next year. “At last! A clear slowing in the rate of core price rises,” Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said. He added the cheery numbers indicated “the peak rate now lies firmly in the past”. Households and businesses have been crushed by soaring prices that started to take off at the end of last year, nudged
higher by supply chains wilting under the weight of a sudden burst in demand after pandemic restrictions were scrapped. Loose monetary policy also supported spending. Inflation was then turbocharged by Russia’s invasion of Ukraine roiling international oil and gas markets. Wage growth has trailed far behind price rises all year, eroding Brits’ spending power at a rapid pace, prompting experts to forecast the UK will slip into a long recession steered by households cutting spending. Chancellor Jeremy Hunt said: “Getting inflation down so people’s wages go
further is my top priority.” Signs of inflation passing its peak raises the chances of the Bank of England opting for a smaller 50 basis point interest rate rise today after it lifted borrowing costs 75 basis points in November – the biggest move since the 1980s. But experts warned of signs that price pressures are beginning to switch from being driven by international factors to domestic dynamics. “There is a lot of uncertainty about how fast [inflation] will fall and whether it will settle at or above the two per cent target,” Paul Dales, chief UK economist at Capital Economics, said.
BINANCE founder Changpeng Zhao scrambled to reassure investors yesterday after the world’s biggest crypto exchange haemorrhaged $3.7bn in a mass investor exodus over the past week. Data from blockchain firm Nansen revealed that Binance had shed $1.9bn in 24 hours on Tuesday in the largest slew of withdrawals on the platform since June. The mass withdrawals caused Binance to announce it had “temporarily paused” withdrawals of stable coin USDC on Tuesday. The panic prompted Zhao (pictured), known as CZ in the industry, to try to reassure investors, saying “things seem to have stabilised” and “deposits are coming back in”. “I actually think it is a good idea to ‘stress test withdrawals’ on each [centralized exchange] on a rotating basis,” Zhao said in a tweet. The heavy outflows underscore the nervousness of investors after Binance’s former rival FTX was brought down by a liquidity crunch when customers rushed to withdraw their assets from the crypto platform.
Put the plastic bag away: Airport security’s tiny bottle rule to finally be ditched ILARIA GRASSO MACOLA PASSENGERS will no longer need to consider how much toothpaste they’re bringing aboard planes as the UK government is relaxing the rules on airport liquids from the summer of 2024. The limit will be increased from
the current 100ml to up to two litres. The requirement to remove laptops from carry-on baggage is also set to go in the biggest shake-up of aviation security for 16 years. “The tiny toiletry has become a staple of airport security checkpoints, but that’s all set to change,” transport secretary Mark
Harper said today. He called on major UK airports to install the latest screening technologies – which rely on 3D imagery to analyse the content of bags
– by June 2024. Despite being announced by Boris Johnson in 2019, the technology’s rollout suffered several setbacks as a result of Covid-19. The system is currently being trialled at
Heathrow, Gatwick and Birmingham airports. Airport operators hailed the announcement as “a great step forward for UK air travel”. The rules on liquids and laptops were introduced as a temporary measure after a failed plot to blow up transatlantic aircraft.
INSIDE FED SLOWS DOWN RATE HIKES P2 HOUSE PRICES START TO FEEL WINTER CHILL P4 CHINESE DIPLOMATS FLEE JUSTICE P7 POSTMAN SPAT P9 MARKETS P13 OPINION P14