This week we have seen equity markets put the problems caused by the bank sell-off behind them. Bank shares have yet to recover, but broader US and European markets are back to their level seen at the beginning of March as investors have settled on a view of where interest rates are headed. The view that we are very close to the peak of the hiking cycle received further support as headline inflation in the EU fell significantly - although core inflation actually rose. Although markets have been swift to move on, the problems facing banks have not disappeared. The huge volume of money leaving banks for the higher yields available in money markets will continue to stress banks that relied on customer apathy.
Meanwhile, the government has been trying to burnish its green credentials with a new energy policy. It’s an easy opportunity for a joke about politicians generating a lot of hot air, but criticism of the plan for being big on intentions but short on investment are fairly well made. Governments were never going to solve this winter’s energy crisis in a matter of months, but keeping the lights on long-term needs more than good intentions.
Read what the team at Financial Express consider to be significant over the current week.