Today's financial news

Thursday 22nd June

<- Back to news

With a higher than expected interest rate raise, some good news is needed on the markets

Play audio

UK interest rates

Following a disappointing inflation update yesterday, the Bank of England has announced that they will be raising interest rates by 0.5%. This takes the total to 5% and is the highest it has been in years. Many expected a slightly smaller raise of 0.25% but the higher than expected inflation announcements have fuelled the more dramatic hike. Markets were flat on the back of the midday announcement and will likely remain subdued. 

FedEx falls

Shares in FedEx fell after they announced disappointing profits results. They have suffered from a slow down in e-commerce post pandemic, as consumers have returned to shops and restaurants. They have cut jobs and grounded planes in an attempt to boost profits. Forecasts for the next year have been downgraded and they also announced a stock buy-back scheme for next year.

Spotify upgrades

Bloomberg reported the latest improvements to the Spotify services, which will include a premium subscription offer. This will likely include both upgraded audio quality as well as access to audio books. Analysts upgraded the stock in response to the news, which in turn drove the stock price up. 

Sources: IG morning call, Investopedia, Bloomberg, Nasdaq, Reuters, The Guardian

Zoe Burt