Insolvencies

• The UK economy experienced a GDP contraction on June 15, 2026, amid rising tax pressures and a steady stream of insolvency notices. • Long-term inflation expectations climbed to a median of 3.9%, marking the highest level since 2009. • JPMorgan economist Allan Monks noted that building price and wage pressures are critical as they influence corporate pricing and Bank of England interest rate decisions.

• On 12 June 2026, the UK economy reported a contraction in GDP alongside rising insolvency notices and increased pressure on the AIM market. • Market instability was further exacerbated by energy volatility and the European Central Bank's decision to raise interest rates. • Globally, the Asian Development Bank revealed that 15 countries have requested emergency loans to combat severe fuel shortages.

• UK small businesses are facing significant financial pressure due to rising fuel, tax, and energy costs amid weakening markets. • Economic indicators show a decline in hiring and slowing mortgage demand, while the risk of corporate insolvencies remains a primary concern. • In currency markets, the euro is being supported by expectations that the European Central Bank will implement a 25 basis point rate hike this Thursday.