Today's financial news

Friday 28th July

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ECB follows the US in raising interest rates whilst oil and gas profits fail to impress consumers

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ECB raises interest rates again

The European Central Bank has raised interest rates by 0.25%, AKA a quarter of a basis point, taking it to a total 3.75%, which is the highest ever level that the block has seen. It is the ninth consecutive raise and follows a move by the central bank in the USA, who also decided to raise interest rates mid-week. The data on June’s inflation is due to be released on Monday, which may give an indication of whether the slowing of interest rates that most are suggesting are truly starting to reach their end. 

Mattel see’s the Hollywood effect

Mattel, the brand owner of Barbie, has seen share prices climb by nearly 33% in the last few weeks on the back of the film hype. Their earnings announcements saw a little dip in the value, as investors were seemingly disappointed by the lack of sales prior to the release of the film. It is predicted that the dip could continue however, as the waging battle with inflation continues and parents struggle to afford the much demanded toys. 

Oil and gas profits provoke stretched consumers

Centrica, the company that owns British gas, revealed soaring profits in their earnings announcement yesterday. This has meant a healthy increase to their dividend, which keeps shareholders happy, however the stretched consumers struggling to handle energy bills, will be less satisfied with the bumper bounty earnt by Centrica. There has been talk of windfall taxes by governments, which might quash some of the shareholder delight, but no further action has yet been taken. 

Sources: AJ Bell, IG, Financial Times, Nasdaq, Yahoo Finance, Fortune

Zoe Burt