FTSE 100 Live 12 July: Bank of England Financial Stability Report, Ashmore Group results

Morning refresh: What you need to know to start the day

Good morning from the City desk of the Evening Standard.

Investor eyes are on Bank of England governor Andrew Bailey this morning as he unveils details of the Bank’s latest Financial Stability Report.

UK financial markets have been rocked over the past year by a wave of turbulence, from the troublesome Liz Truss mini-Budget in October which sent bond yields soaring, to the collapse of Silicon Valley Bank and of Credit Suisse shortly thereafter, to the woes of stubbornly high inflation and months of consecutive interest rate rises in an attempt to bring it under control.

The Bank’s previous Financial Stability Report, published in December last year, warned of a “deterioration in the global economic outlook, together with heightened uncertainty and the potential for further adverse geopolitical developments.” Bailey will hope to show that the UK’s biggest banks remain well-capitalised and have the financial might to withstand future shocks.

The full report will be released at 7am before a press conference is held at 9.

Here’s a look back at our business news headlines from yesterday:

1. The pound hit a 15-month high of $1.29 as traders doubled down on their bets of further interest rate rises, with talk of the possibility of 7% interest rates. Regular pay went up 7.3% in May, a record rise, defying forecasts of a fall to 7.1%.
2. Two-year mortgage rates hit a fresh 15-year high, but brokers continue to price in further rate rises.
3. Insolvency specialist Begbies Traynor said it foresaw a continued rise in the number of companies going bust well into 2024.
4. Fintech bosses have voiced their frustration at the FCA after data obtained by the Standard showed approval of applications for e-money licenses plunged to just 8% in 2022.

This morning we’re expecting annual results from investment manager Ashmore Group and bar-restaurant group Loungers.

Fresh on the heels of yesterday’s unemployment data, we’re also expecting a trading update from recruitment business Page Group, as well as one from bowling alley business Ten Entertainment.

As we move into the afternoon, we’ll get inflation data from the US ahead of the opening bell on Wall Street, which investors will watch with a keen eye to decipher whether further Fed rate rises are on the cards.