Tiwa Adebayo

In the wake of the pandemic, supply disruptions and pent-up demand sent the cost of goods soaring, making it the main source of inflation.

Now the landscape has changed as people shift from buying to doing.

Pubs, cinemas, restaurants and hair salons are boosting prices by over 4%, more than double the Bank of England's overall inflation target.

The change comes as minimum wage hikes and other rising costs put some service firms under pressure.

The worry now is that business owners can use their pricing power to shift some of the Iran war impact onto consumers, turning the BOE's fears of second round effects into reality.

In London, Tiwa Adebayo, Bloomberg Radio.

Chair Powell opened the door to this first interest rate cut.

Oil companies, miners, chip makers and banks are the big winners among European firms.

Bloomberg Intelligence data forecasts operating margins to grow almost 8% for stock 600 companies this year.

That's after three consecutive years of declines.

Rising crude prices have made big oil the biggest contributor to the reversal.

Banks are being boosted by higher rates and savings from AI-led job cuts.

But despite the progress, Europe's margin recovery remains fragile as the Iran war continues to disrupt energy markets.

And if inflation remains sticky, the outlook for consumer companies may darken further.

In London, Tiwa Adebayo, Bloomberg Radio.

Oil companies, miners, chip makers and banks are the big winners among European firms.

Bloomberg Intelligence data forecasts operating margins to grow almost 8% for stock 600 companies this year.

That's after three consecutive years of declines.

Rising crude prices have made big oil the biggest contributor to the reversal.

Banks are being boosted by higher rates and savings from AI-led job cuts.