By - Rishika Raina
Highlights
- PM Boris Johnson stepped down from his position after a massive cabinet revolt on Thursday.
- The Bank of England has pledged to bring down the inflation levels in the country amid the escalating tensions.
After a string of resignations, including the resignations of Rishi Sunak and Sajid Javid from the cabinet on Wednesday, PM Boris Johnson stepped down from his position as the ruling party leader on Thursday. As per the reports, Johnson will be continuing until autumn, after which a new leader will be chosen as the next PM.
As per news updates, around 50 MPs resigned from their positions. While Sunak and Javid resigned yesterday, Pensions Minister Guy Opperman was the latest to resign.
Newly appointed chancellor Nadhim Zahawi reportedly told Johnson earlier in the day that he should resign. In a letter posted on Twitter, he said things would "only get worse". He added: "You must do the right thing and go now."
With Johnson’s position coming under scrutiny, one of the remaining cabinet ministers, Kwasi Kwarteng, termed the current state of affairs as disappointing and the country needs a new leader as soon as possible.
While the Government is falling apart, the economy is in the doldrums. However, the Bank of England (BoE) has pledged to bring down the inflation levels to the 2% target and has indicated further rate hikes for achieving the same.
The goal of the bank is to reduce prices and increase affordability, in turn helping households as well as businesses to handle the rising bills and repayment of debts. From the already record-high level of 9.1%, inflation levels are expected to surpass 11% in October, as per BoE estimates. Thus, interest rates are anticipated to go further up from the current 13-year high of 1.25%.
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Amid this turmoil, FTSE was trading higher on Thursday. The FTSE 250 index, as per Reuters, recorded its session high. We have shortlisted some stocks that investors might choose to protect and grow their hard-earned money.
Imperial Brands plc (LON: IMB)
Tobacco producer Imperial Brands plc was witnessing a positive moment in the market today amidst the gloom as it was trading at GBX 1,809.50 and was up by 0.03%. IMB’s market cap stood at £17,192.88 million with a positive EPS of 3.00, IMB’s P/E ratio stood at 8.49 giving its investors a positive return of 16.33% on a one-year basis and YTD returns of 11.67% as of 7 July.
British American Tobacco plc (LON: BATS)
British American Tobacco plc had a market cap of £78,744.46 million as of 7 July and was offering an annual dividend yield of 6.3% to investors. With a positive EPS of 2.97, BATS’s P/E ratio stands at 12.06. On a one-year basis, BATS has given a return of 21.42% to investors, while on a YTD basis it has given 24.49%. However, BATS’s shares were witnessing a downtrend as it was down by 2.44% at 11:55 AM (GMT+1) at GBX 3,403.50.
Vodafone Group plc (LON: VOD)
Leading telecommunication firm Vodafone Group plc had a market cap of £35,537.06m with a positive EPS of 0.07, VOD’s P/E ratio stands at 20.69. On a one-year basis, VOD has given a return of 7.01% to investors as of 7 July, while on a YTD basis it has given 13.70%. VOD’s shares were up by 0.81% at 12:02 PM (GMT+1) on 7 July, at GBX 127.72.