Truss and Hunt to oversee protracted recession, EY Item Club forecasts October 17, 2022 The UK is on course for a long recession that will last from this winter through to next summer, underscoring the tough challenge facing prime minister Liz Truss and her new chancellor Jeremy Hunt. Rising inflation compounded by higher interest rates will force the economy into reverse in the current quarter until the summer of [...]
Truss’s botched mini budget heaps pressure on company finances October 17, 2022 Prime minister Liz Truss’s botched mini budget has heaped pressure on the finances of the UK’s largest companies, reveals new research out today. Chief financial officers of FTSE 100 and 250 firms see borrowing as more costly than at any time since 2010, according to big four accountant Deloitte. UK financial markets have been rocked [...]
Bank of England to launch gentler but still record rate rise after mini budget U-turns October 16, 2022 The Bank of England can marginally take its foot off the accelerator after prime minister Liz Truss U-turned on key aspects of her tax cutting mini budget, but will still launch the biggest move in its 25 years of independence, City economists are betting. The monetary policy committee (MPC) is set to lift borrowing costs [...]
City braces for fresh inflation and borrowing figures October 16, 2022 The City is bracing for another busy week of new data illustrating the health of the UK economy. Last week, the FTSE 100 index fell 1.89 per cent to finish at 6,858.79 points after it was rocked by prime minister Liz Truss ditching chancellor Kwasi Kwarteng. The domestically-focused mid-cap FTSE 250 index, which is more [...]
Hunt says Truss has ‘changed’ as he warns of spending cuts and tax rises October 16, 2022 Jeremy Hunt has claimed Liz Truss has “changed” after the bruising last month as he warns of coming spending cuts and tax rises. The new chancellor said “spending is not going to increase by as much as people hoped” and that “taxes are not going to go down as quickly as people thought and some [...]
Analysis: Truss can’t buck the markets October 14, 2022 Around eight minutes is how long prime minister Liz Truss today allocated to explain why she sacked her chancellor for implementing her tax cuts and signed off her second mini budget U-turn. She clarified neither. She answered four questions and committed to her “mission” to boost growth in the UK at a Downing Street press [...]
Liz Truss appoints Jeremy Hunt as chancellor after Kwarteng sacking October 14, 2022 Jeremy Hunt has been appointed as the new chancellor after prime minister Liz Truss sacked Kwasi Kwarteng today following weeks of market turmoil triggered by last month’s mini budget. Hunt is the fourth chancellor this year. According to bookmaker Betfair, Truss is now odds on to step down as prime minister. Kwarteng wrote to Liz [...]
UK borrowing costs tank as mini budget U-turn rumours gather pace October 14, 2022 UK borrowing costs fell sharply today driven by chancellor Kwasi Kwarteng and prime minister Liz Truss reportedly set to U-turn on more parts of their mini budget. The chancellor has today cut short his trip to the International Monetary Fund’s Washington meetings to hold emergency talks with Truss in London. Rumours of a second U-turn [...]
UK borrowing costs drop as Kwarteng hints at mini budget U-turn October 13, 2022 UK borrowing costs collapsed today driven by chancellor Kwasi Kwarteng sending the strongest signal yet he will roll back elements of last month’s mini budget. Rates on UK gilts dropped across the curve after they yesterday climbed to their highest level since the day the Bank was forced to step in. Yields on the 30-year [...]
City braced for end of £65bn Bank of England bond market package October 13, 2022 The City is bracing for the Bank of England to pull its £65bn emergency support package for the bond market tomorrow, but experts said volatility could be tamed by existing backstops supporting the pensions industry. Britain’s debt market has been rocked by concerns over the government’s financial credibility after it launched £43bn of tax cuts [...]