Crypto News: Reasons to be cheerful

Records were smashed, on and off the pitch. More fans were inside Wembley Stadium on Sunday than for any previous Euros final — men's or women's. There were record UK and German TV audiences for women's football. German Chancellor Olaf Scholz called for equal pay in sports.

In a summer of complex crises, victory by the Lionesses burst a cloud of simple joy over a parched nation in need of a boost. It might not last long.

After England's first football tournament win in nearly 60 years, it's the Bank of England's turn to break with precedent. On Thursday it's expected to push through the biggest interest rate rise in 27 years, to choke off the worst inflation in 40. Most investors expect a half-point increase, to 1.75% — the highest level since the financial crisis in 2009.

For now, though, we are determined not to lose that feel-good feeling. So let's park the economic gloom for a couple more days.

England players celebrate with fans at Trafalgar Square on Aug. 1. Photographer: Harriet Lander/Getty Images Europe

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US House Speaker Nancy Pelosi is expected to visit Taiwan on Tuesday. China says its military "won't sit idly by."
Rishi Sunak promised to reduce personal taxes by 20% within seven years if he becomes prime minister.
British Airways stopped ticket sales on some short-haul flights out of Heathrow following the airport's travel cap.

Our series last week sounded a daily drumbeat on the difficulties facing the next prime minister. In the spirit of the moment, we start this week on a more positive note.

Andrew Atkinson and Reed Landberg today take the glass-is-half-full approach to August 2022. Channeling the spirit of Chloe Kelly, here we go:

Debt isn't what it used to be
The UK has cut its debt burden since 2016 and its deficit is smaller than the US, France and Italy. This is why leadership contender Liz Truss thinks she can announce tax cuts (though "not on the scale" she would like.)

UK stocks aren't as bad as the others
The FTSE 100 is up 0.6% this year, while key indexes of US and European stocks are down by 10% and the rest. Many of the biggest FTSE firms (banks, energy companies and miners) benefit from rising interest rates and higher oil, gas and commodity prices. Plus they make money in dollars — and that's been increasingly strong. This looks likely to continue — Truss wants to reduce corporation tax and says she won't repeat a windfall tax on energy companies.

Pandemic piggybank
British families accumulated savings during Covid when outgoings went down - almost £200 billion at the end of 2021. While it's not evenly spread, it helps to explain why banks are still not yet reporting distress.

It's a jobseeker's market
The tight jobs market means private sector wages are healthy (far more than that in some sectors); new starters can command big salaries; and prospects for graduates are better than last year.

Of course, there are plenty of Reasons to be Gloomy, too. (For glumbucket vibes, try this, this, this, and this.)

Clearly there is a chance that energy blackouts make this a dark autumn for the Tories. (Are Britons really ready for evenings without electricity?) By some reckonings, Prime Minister Truss might have just three weeks before she collides with economic reality.

But equally, as Andrew and Reed note, there are strengths to the UK economy that must not to be overlooked.

ICYMI: At the weekend we published the fifth part of our "Autumn Reckoning" series on the challenges facing the next prime minister.

Swathes of England's former manufacturing heartlands that historically backed Labour were won over by Boris Johnson's potent promise to close the gap between the richest and most deprived areas.

Now Liz Truss and Rishi Sunak seem to be inheriting a failing promise. Bloomberg's Levelling Up Scorecard shows that since 2019, the salary gap relative to London and South East has widened in nine out of 10 constituencies. Homes are less affordable nearly everywhere and public spending per head has fallen behind the capital in every region of England.

Some genuine signs of "levelling up" will be critical if the next leader wants to retain the voters that gave the Tories their biggest election win since 1987.

Get ahead of the curve

A dynasty turns to women. The Grosvenor family, dominated by men since 1677, is now empowering women to manage its fortune.

Bye, London. Londoners are still leaving the capital at the same level as during the pandemic rush of a year ago — despite offices reopening.

Crypto disasters. From Matt Damon to Reese Witherspoon, celebrities have a terrible record touting crypto

The end of Londongrad? A key tool in the UK's clampdown on money laundering comes into effect today.

Cash for the sanctioned. Dubai's cash-based crypto shops are becoming a lifeline for people who can't use banks due to Western sanctions.

Not Lovin' It. Cheeseburgers at more than £1 mean it's time for the BOE to make a move, writes Bloomberg Opinion columnist Marcus Ashworth.

$254 billion

The deals, including initial public offerings, bonds, loans and acquisitions, that have been postponed or shelved as the global economy continues to battle inflation and energy shortages.

One key story, every weekday

Partially lit commercial buildings at night in Frankfurt. Photographer: Ben Kilb/Bloomberg

Germany's government was slow to react when Russia squeezed gas supplies. Now cities are cutting back on lighting and hot water in a bid to avert disaster.

It might still be the height of summer, but Germany has little time to lose to avert an energy shortage this winter that would be unprecedented for a developed nation. Much of Europe is feeling the strain from Russia's reduction of natural gas deliveries. Yet no other country is as exposed as the region's biggest economy.

Rationing and recession are looming for Germany, and authorities have voiced concern about social unrest if the energy shortage spins out of control.

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