UK facing income squeeze and rising destitution; ‘Britcoin’ consultation launched; Tesla shares slide – as it happened |

Time to recap

The UK will suffer stuttering growth, rising inflation and widening income inequalities in the coming months, the NIESR economic thinktank has warned. Rising prices, increased taxes, and a likely increase in interest rates will all hurt families, and push more into destitution.

NIESR also warned that UK regional inequality is rising, and that Britain’s economy risks stagnation and sticky inflation over the coming years due to persistent supply-chain bottlenecks and headwinds from Brexit.

Households also face rising prices in the shops, with grocery inflation at its highest in 14 months.

Consumers have started their Christmas shopping earlier than usual amid concern over supply chain shortages and rising prices.

The UK is to consult on launching ‘Britcoin’. Officials will assess whether a central bank digital currency is feasible and desirable – it could be launched in the second half of the decade.

While UK policymakers mull things over, Bitcoin has hit a new record high today, trading over $68,000.

But the Federal Reserve has warned that the stablecoins which underpin crypto are vulnerable, after a surge in interest this year.

The Fed’s latest financial stability report also warned that risky asset prices remain vulnerable to a tumble if growth falters or the pandemic intensifies. A crisis in China’s real estate sector could strain the Chinese financial system, and spill over to the United States, it fears.

US producer price inflation remained high last month, as the surge in gasoline pushed up the price of goods.

In Germany, investors are more optimistic about the economic outlook, but the supply chain crisis is hurting the economy now.

Shares in Tesla have tumbled 10% today, as investors brace for Elon Musk to sell some of his stake.

Michael Hewson of CMC Markets says:

Tesla shares are also lower again for the second day in a row, sliding to their lowest levels this month, as investors weigh how CEO Musk will go about selling his holdings.

Primark has announced plans to open more than 100 new stores, but also warned that supply chain issues are hitting the availability of a small number of lines.

General Electric is splitting itself up after 129 years – into three public companies focused on healthcare, energy and aviation.

British Airways is planning to hire 4,000 staff in the coming months, in a reversal of its cutbacks under the pandemic, Bloomberg says.

And Watches of Switzerland has lifted its sales forecasts, as the boom in demand for expensive timepieces continues.

Seán FitzPatrick, the former chief executive and chairman of Anglo Irish Bank whose collapse in the financial crisis led to a €30bn rescue package and Ireland’s bailout, has died.

Rishi Sunak has outlined plans for a post-Brexit system of financial regulation, which will focus more on growth and international competitiveness.

About 5,000 public phone boxes around the UK will be protected from closure in areas of high accident rates or poor mobile signals, under plans drawn up by Ofcom, the regulator.

Stock markets have dipped in Europe and on Wall Street.

Goodnight. GW