Weekly Market Update 05/08/2026

The Bank of England and US Federal Reserve have both kept interest rates unchanged, but voting splits show policymakers are increasingly divided over inflation risks.

In the UK, Chancellor John Healey has confirmed that the government’s first Budget will take place on 28 October, giving expatriates with UK pensions, investments or property a clearer timetable to watch.

We also look at the latest Big Tech earnings, including Microsoft, Amazon and Meta, and what they reveal about whether heavy investment in artificial intelligence is beginning to produce sufficient commercial returns.

Elsewhere, US economic growth has slowed, although underlying private demand remains relatively resilient, while inflation is still running above the Federal Reserve’s target.

Finally, we revisit the Middle East, where oil prices and shipping risks remain volatile as markets react to conflicting signals around diplomacy and the Strait of Hormuz.

This episode is based on our Weekly Market Update email, originally researched on Monday 3 August and updated on Tuesday 4 August 2026 at approximately 10:00 a.m. UK time. Market conditions, political announcements and geopolitical developments may have changed since that point.