UK inflation falls much to economists’ surprise

The UK’s inflation rate dropped from 6.8% in July to 6.7% in August, as announced this morning. This came as a surprise amid rising fuel costs, which led many to anticipate a rise to around the 7% mark. With the Bank of England set to make a decision tomorrow on their interest rate hikes, this surprising fall will undoubtedly impact the discussions. Many still believe, however, that they will opt to increase interest rates as the UK continues to battle some of the highest inflation rates amongst developed nations. 

NIO shares take a tumble

NIO (NYSE: NIO) saw their shares take a tumble by over 10% yesterday, after making an intriguing market offer. The electric vehicle company announced that they would give investors the opportunity to buy a total of $1 million in convertible bonds, which would be due to convert into stock in 2029 and 2030. Whilst this is a long time in advance, it dilutes the amount of shares available, reducing value for current shareholders. Whilst they’ve said that they will be using the money from the bonds to reinvest into the company, their inability to have turned a profit yet may worry markets and struggle to give this electric vehicle maker the launch it requires. 

Crypto funds take a popularity hit

Crypto funds are a relatively new occurrence: the offering of a basket of potentially volatile crypto coins has been slow to receive regulatory approval. However, despite the growing quantity of these funds that are available, it’s been reported that over $500 million was pulled out of funds, with nearly $45 million leaving Bitcoin reserves alone. Four consecutive weeks of downturn over August hasn’t helped investor confidence in cryptocurrencies and many enthusiasts fear that investors will seek gains in other more stable areas for the remaining quarter of 2023. 

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Sources: Bloomberg, Nasdaq, Yahoo Finance, Motley Fool, IG, AJ Bell