We start the day with a strong reminder of how the cost of living crisis is devouring household budgets. Real-time bonuses excluding bonuses fell 3.4% in April, the biggest drop since records began in 2001, according to the latest ONS figures. In the three months to April, they fell by 2.2%, which is the biggest drop in the last decade. While bonuses help alleviate some of the blow, not all employees benefit. The figures show how wage increases are failing to keep pace with rising prices, with total earnings rising by less than half the rate of inflation. The data underscore the challenge facing the Bank of England in the face of this week’s interest rate decision, as the MPC seeks to balance spiraling inflation with the risk of recession.

5 things to start your day with

  1. The boom in the housing market creates 36,000 millionaires in one year Britain can now boast 609,000 people of high net worth
  2. Shell plans to expand amid energy chaos The FTSE 100 plans to invest -25 20-25 billion in the UK
  3. How the Bank of England made another mistake in Britain’s slide into recession Britain’s recovery from the pandemic has been derailed by the cost of living crisis
  4. Binance “stops” Bitcoin withdrawals amid market collapse Markets are in chaos as Bitcoin falls to its lowest level since December 2020
  5. Tesco is accused of breaking the Lidl logo to “ride the discount coats” The grocery store responds that the yellow circle brand is “a figment of Lidl’s legal imagination”

What happened overnight

Stock markets fell again on Tuesday to prolong the global catastrophe fueled by fears of a recession, with the Federal Reserve preparing to raise interest rates as inflation showed no signs of slowing. That sparked fears that the world’s leading economy was heading for recession, and on Monday Wall Street sank with the S&P 500 broadly sinking into a bear market after falling more than 20 percent since its recent peak. And sales continued in Asia, with Sydney falling 5 percent at one point as it reopened after a holiday weekend to catch up with Monday’s drama, while Tokyo was about 2 percent and Wellington more than 3 percent. one hundred. Hong Kong, Shanghai, Seoul, Singapore, Taipei and Manila were also deep in the red.

He is coming today

Corporate company: Ashtead Group, FirstGroup, Oxford Instruments, Paragon Banking Group (full year results). Crest Nicholson, DiscoverIE Group, Ferguson (intermediaries) Bellway (statement of transactions) Economics: Unemployment rate (UK), number of applicants (UK), average earnings (UK), inflation (Germany), economic climate (EU), producer price index (US)