Crypto News: The London Rush: Inflation dips below target

Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Can you hear the relief on Threadneedle Street? Lower prices at petrol pumps and cheaper air fares pulled inflation for September down to 1.7%. Importantly, stubborn services inflation has eased off.

That is a triple threat of:

lower than expectations (of 1.9% by economists and 2.1% by the Bank of England in August).
the lowest since 2021.
below the Bank of England's 2% target.

It boosts the case for a possible second interest rate cut next month. A drop in the pound after the figures were released suggest traders are anticipating as much.

But it is a delicate balance: Inflation is expected to pick up again over the coming months, and rate-setters will need to be fully confident that price pressures are contained if borrowing costs are to come down at a quicker pace.

Markets Today's Morwenna Coniam gives her take on the figures below.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Fast fashion giant Shein has picked Barclays and UBS Group to help with its potential London listing, which may happen as soon as early 2025.

Miner Rio Tinto defied slowing demand from China and slightly raised its output of iron ore — which makes steel — last quarter. It nodded to "new growth areas" ie. electric vehicles. Peer Antofagasta said its output, of copper, also rose.

Premier Inn parent Whitbread is aiming for far more profit and shareholder returns by 2030, despite flat revenue for the first-half on soft UK demand. It is expanding and October/November bookings have picked up, though.

And — ahead of the budget — landlords are selling up: a fifth of UK homes currently for sale were previously for rent. That's partly over concern that Rachel Reeves will impose higher taxes, with the Chancellor hoping to raise a rather large £40 billion.

Tom Brady is buying a 10% stake in the Las Vegas Raiders NFL team.
Israel vows to make its own decisions on attacking Iran, after US pleas.
Hong Kong to loosen housing rules, cut alcohol tax in growth push.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Today's inflation reading will be welcome news to the Bank of England as it weighs its path forward when it comes to cutting interest rates. The surprise drop in services inflation — from 5.6% to 4.9% — is key as it alleviates one of the central bank's biggest trouble spots, with stickiness in the measure having led to hesitancy on cutting rates in the past.

Traders have already begun pricing more interest rate cuts by the end of the year with a greater degree of certainty. One quarter point cut next month seems extremely likely now, while the chances of a second one in December are seen to be increasing.

Of course beyond its impact on monetary policy, today's print shows a mixture of trends. Overall inflation may be down, but the pace of food price increases rose for the first time since early last year while the costs associated with living in your own home grew at the fastest since 1992. For homeowners and those looking to get a mortgage, therefore, the prospects of lower interest rates will certainly be welcome.

— Morwenna Coniam

Check Bloomberg UK's Markets Today blog for updates all day.

Deliveroo gives third-quarter figures. On the plus side, analysts think signs of improving demand, and cost cuts, mean cash-flow momentum may continue.

Yet at the same time, Deliveroo is also battling worries of slowing growth in restaurant deliveries, greater rivalry from grocers and legal disputes around the work status of its riders.

Keir Starmer has said weight-loss drugs like Ozempic could help the economy by boosting productivity and relieving the NHS. How many billions of pounds does obesity cost the NHS each year, according to official figures?

Photographer: Carsten Snejbjerg/Bloomberg

[Yesterday's answer: We were referring to Pep Guardiola reportedly being sounded out by the FA to become the next England football manager … but that was before Thomas Tuchel was named as the most likely successor.]

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