
UK inflation eased to a near‑year low, with the CPI falling to 3% year‑on‑year in January 2026, down from 3.4% in December. The slowdown, driven by lower petrol, airfares and food prices, has revived expectations that the Bank of England will cut its 3.75% policy rate as early as March. Meanwhile, unemployment rose to 5.2%, the highest since the pandemic, prompting the BoE to balance labour market risks. Defence stocks rallied after Labour leader Keir Starmer pledged faster defence spending.

UK’s FTSE 100 slipped 0.3% after a string of negative corporate news. Energy giant BP announced a suspension of its share buyback programme and heightened cost‑cutting targets to fund oil production, while Standard Chartered saw its finance chief Diego De Giorgi...

UK bond markets reacted sharply on Monday after a series of high‑profile Downing Street resignations, with the 10‑year gilt yield climbing to 4.62% – a ten‑basis‑point surge that set a three‑month high. The departures, including communications chief Tim Allan and...

The Financial Stability Board warned that leveraged trades in the short‑term repo market could spark fire‑sale dynamics, pressuring sovereign bond prices. It highlighted a $16 trillion global repo market, with hedge‑fund borrowing near $3 trillion—about 25% of their assets—often conducted with zero...