European markets take a gloomy downturn

On the back of yesterday's downgrade of the US government’s credit rating by Fitch, global markets took a negative turn. European markets were particularly down in the face of falling tech stocks – driven by Infeon AG's poor outlook for the next quarter – as well as the impending decision from the Bank of England on interest rates. With the rate of European IPOs grinding to their lowest level since the 2008 crash, many are now fearing an elongated period of economic hardship in the European region. 

Bank of England set to raise interest rates

The Bank of England is set to release its decision on interest rates at midday today. It’s widely expected that they will raise it by 0.25%, but an overall slowing in inflation may mean that we have less of these hikes to come. A raise is rarely received well by markets, so many will be anticipating further dips throughout the day and into the close of the week. 

ABIn Bev profits hit by TikTok backlash

Anheuser-Busch InBev, the Belgian-based drinks company which owns many large alcohol brands including Budweiser, announced a steep drop in profits on the back of a controversial partnership. Last quarter, they paired with a transgender TikTok influencer, which caused uproar in conservative areas of the US, with a renowned rapper taking the extreme response of shooting Bud light bottles on a video posted to social media. Profits dropped 10.5% for the last quarter, but the drinks company remains adamant that they can maintain resilience into the next quar

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Sources: Financial Times, Bloomberg, Nasdaq,  AJ Bell, IG