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☆ Former UK PM Liz Truss is blaming the left-wing 'economic establishment' for ousting her
▼ + stars: | 2023-02-06 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

British Prime Minister Liz Truss announces her resignation, outside Number 10 Downing Street, London, Britain October 20, 2022. Henry Nicholls | ReutersLONDON — Former U.K. Prime Minister Liz Truss is blaming a "powerful economic establishment" for bringing her chaotic 44-day tenure to an end last year. Truss was elected leader of the Conservative Party in September, defeating her eventual successor Rishi Sunak, after garnering 81,326 votes from party members following the ousting of Boris Johnson. She was acting as if winning a majority of the Conservative Party membership gave her economic credibility, and it most clearly doesn't." Current Prime Minister Rishi Sunak's government vowed to restore this credibility upon taking over in October, and quickly reversed Truss' entire economic agenda.

☆ UK's shortest-serving PM Liz Truss blames economic 'orthodoxy' for downfall
▼ + stars: | 2023-02-05 | by ( ) www.reuters.com time to read: +3 min

LONDON, Feb 5 (Reuters) - Former British prime minister Liz Truss blamed on Sunday the economic "orthodoxy" in the country's finance ministry, other nations and in parts of the governing Conservative Party for derailing her premiership and "plan for growth". But she was not successful, she wrote, because she had underestimated "the blob of vested interests" and orthodoxy. "As I had spelled out during the leadership campaign, I wanted to go for growth ... But this was not in line with the instinctive views of the Treasury (finance ministry) or the wider orthodox economic ecosystem." Grant Shapps, business minister, said everyone wanted lower taxes but Prime Minister Rishi Sunak's government had to focus on reducing debt, bringing down inflation and boosting growth first.

Here are the fourth-quarter numbers versus what Wall Street expected:Net income: $2.5 billion versus $3.2 billion a year ago. Net Interest Income: $13.27 billion, above the 12.7 billion expected by analysts, according to StreetAccountTrading Revenue: Fixed Income $3.16 billion, above expectations. Revenues in services and markets divisions increased 32% and 18% respectively, driven by growth in interest income and in fixed income markets. The fixed income markets division saw revenues jump 31% to $3.2 billion, the highest fourth-quarter results ever, due to strength in rates and currencies. There was also strength in banking, with private bank revenues gaining 5% and U.S. personal bank revenues up 10%.

☆ PM Sunak promises to tackle Britain's most pressing problems
▼ + stars: | 2023-01-04 | by ( ) www.cnbc.com time to read: +4 min

Prime Minister Rishi Sunak promised on Wednesday to tackle Britain's most pressing problems, from cutting inflation to ending illegal migration, in a speech aimed at reassuring his restive Conservative Party before the next election. Five foundations, on which to build a better future for our children and grandchildren," Sunak said in a speech in east London. So, I ask you to judge us on the effort we put in and the results we achieve," Sunak said. We're either delivering for you or we're not," Sunak said on Wednesday. "I ask you to judge us on the effort that we put in and the results that we achieve."

LONDON, Jan 4 (Reuters) - U.S. funds giant BlackRock (BLK.N) will defer third-quarter redemptions from its 3.5 billion pounds ($4.2 billion) BlackRock UK Property Fund, a source told Reuters, in the latest sign of strain in Britain's real estate market. BlackRock's UK property fund will defer withdrawals that were originally due to be paid at the end of December, a person familiar with the situation said, asking not to be named. As of November, funds overseeing around 17 billion pounds in UK real estate assets were restricting redemptions to prevent firesales. A spokesperson for Legal & General Investment Management said on Wednesday that its Managed Property Fund was no longer deferring redemptions. M&G, Columbia Threadneedle, Schroders and CBRE did not immediately confirm to Reuters whether redemption deferrals were still in place for their UK property funds.

☆ PM Rishi Sunak sets out priorities for Britain, responds to critics
▼ + stars: | 2023-01-03 | by ( Elizabeth Piper | ) www.reuters.com time to read: +3 min

LONDON, Jan 3 (Reuters) - British Prime Minister Rishi Sunak will set out his priorities for 2023 on Wednesday, using his first speech of the year to try to reassure his restive Conservative Party that he has what it takes to lead them into the next national election. Wednesday's speech will be as much a statement of intent as a reply to critics who doubt whether the man, who failed to win against Truss in the Conservative leadership race in September, has what it takes to help the party win the next election. Billed by his Downing Street office as a speech to set out his priorities for the year ahead and ambition for a better future for Britain, Sunak, 42, will set out his commitment to deliver for the long term on issues such as low numeracy rates. The speech will not come too soon for those in his governing Conservative Party who see little chance of winning the next election, expected in 2024. Reporting by Elizabeth Piper, additional reporting by Muvija M.; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ How 2022 shocked, rocked and rolled global markets
▼ + stars: | 2022-12-30 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

The main drivers have been the war in Ukraine, combined with rampant inflation as global economies broke out of the pandemic, but China remained shackled by it. U.S. Treasuries and German bonds, the benchmarks of global borrowing markets and traditional go-to assets in troubled times, lost 17% and 25% respectively in dollar terms. Ten-year Treasury yields jumped to 1.8% from less than 1.5%, knocking 5% off MSCI's world stocks index (.MIWD00000PUS) in January alone. The Fed has delivered an eye-watering 400bps of rate hikes and the European Central Bank, a record 250bps, despite saying this time last year it was unlikely to budge. "What has gone in global markets this year has been traumatic," said EFG Bank Chief Economist and ex-Deputy Governor of Ireland's central bank, Stefan Gerlach.

☆ UK house prices end 2022 on a weaker note after pandemic boom
▼ + stars: | 2022-12-30 | by ( Muvija M | ) www.reuters.com time to read: +3 min

The lender also said that the final month of 2022 saw prices record their worst run since 2008 on a monthly basis, falling 0.1% compared with November in their fourth consecutive monthly price fall. In annual terms, house price growth slowed to 2.8% in December from 4.4% in November, Nationwide said, compared with the 2.3% growth forecast in a Reuters poll. That has marked a slowdown from last year when price growth reached multi-year highs due to strong demand as people desired bigger homes more suited for remote working during the health crisis. NEW YEAR ACTIVITYEarlier in December, a survey by the Royal Institution of Chartered Surveyors (RICS) showed the most widespread house price falls in Britain since early in the pandemic last month. If sustained, this should feed through to mortgage rates and help improve the affordability position for potential buyers," he added.

WASHINGTON, Dec 29 (Reuters) - The U.S. government on Thursday filed a lawsuit accusing AmerisourceBergen Corp (ABC.N), one of the nation's largest drug distributors, of helping ignite the nation's deadly opioid epidemic by failing to report hundreds of thousands of suspicious orders of prescription painkillers. The government said AmerisourceBergen had since 2014 systematically refused or negligently failed to flag suspicious orders by pharmacy customers when it had reason to know that opioids were being diverted to illegal channels. "For years, AmerisourceBergen prioritized profits over its legal obligations and over Americans' well-being," Associate Attorney General Vanita Gupta told reporters. In a statement, AmerisourceBergen called the lawsuit an improper attempt to "shift blame" and the burdens of law enforcement from the Justice Department and DEA to the companies they regulate. The Justice Department said AmerisourceBergen for years understaffed and unfunded programs designed to ensure compliance with the Controlled Substances Act.

☆ As Kuroda bows out, Bank of Japan's rising hawks eye end to unloved yield cap
▼ + stars: | 2022-12-16 | by ( Leika Kihara | ) www.reuters.com time to read: +12 min

PUBLIC DISCONTENTAfter a tumultuous year for the world's third-largest economy, Japan's central bank and its leadership face a critical moment. While ruling out the need to ditch the yield cap now, Takata recently said he saw positive developments in wage growth. "The BOJ must start worrying about the possibility of inflation accelerating more than expected," he told Reuters, adding the BOJ may abandon its yield cap as early as next year. Such a reaction was seen in March when the BOJ was forced to pledge unlimited bond buying to defend its yield cap from speculative market attacks. "That's why the BOJ won't provide advance signals and remove the yield cap in a single step."

☆ British PM Sunak faces new demands from his fractious party
▼ + stars: | 2022-12-11 | by ( Alistair Smout | ) www.reuters.com time to read: +3 min

The Conservative Party has already ousted two prime ministers in 2022 - Boris Johnson and Liz Truss - and trails the opposition Labour party in the polls by double digits, with another national election expected in 2024. Sunak became prime minister in October when Truss resigned after less than two months. Sunak has reversed those plans and instead raised taxes, reassuring financial markets, but upsetting some Conservative lawmakers. A separate group - Conservative Democratic Organisation - was also launched on Sunday aiming to "take back control" of the party on behalf of the party's membership, after Johnson and Truss were ousted - and Sunak selected - by the parliamentary party. Johnson and Truss were both chosen via a vote by the Conservative Party's membership of around 170,000.

Blackstone (BX.N) limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as interest rate surged, a source close to the fund said. The development is yet another reminder of the risks facing not just sectors that are sensitive to higher interest rates but also broader financial markets, which have rallied sharply on hopes that interest rate hikes will slow. "REITS had a fantastic performance for a couple of months but when you have that outperformance, investors don't react to traditional fundamental signals such as rising rates," she said. But in recent weeks expectations have risen that the Fed will "pivot" from aggressive tightening, prompting investors to price in lower peak interest rates. Blackstone has reported a 9.3% year-to-date net return for the REIT, while the publicly traded Dow Jones U.S.

☆ Bank of England to raise Bank Rate by 50 bps in Dec, peak at 4.25% in Q1: Reuters poll
▼ + stars: | 2022-11-23 | by ( Jonathan Cable | ) www.reuters.com time to read: +4 min

After adding 75 basis points to Bank Rate earlier this month the Monetary Policy Committee will add a more modest 50 basis points on Dec. 15, taking it to 3.50%, the Nov. 18-22 poll found. In an October poll, the rate was expected to end this year at 3.75%. Over 75% of respondents, 43 of 56, opted for 50 basis points while 13 said 75. Reuters Poll - Bank of England monetary policy outlook for DecemberAt the Nov. 3 meeting Governor Andrew Bailey told investors, who were pricing in a peak around 4.70%, their rate hike bets looked too big. The United States Federal Reserve has made four consecutive 75 basis point increases but was expected to shift down the pace to a 50 basis point move next month.

☆ Sterling climbs as dollar rally wanes
▼ + stars: | 2022-11-22 | by ( Harry Robertson | ) www.reuters.com time to read: +2 min

LONDON, Nov 22 (Reuters) - The pound rose on Tuesday after falling in the previous session, as the dollar retreated following three days of gains. Still, the U.S. currency was down against its major peers on Tuesday, with sterling rising 0.33% to $1.185. "The general picture is the dollar is just drifting a little bit lower after having a fairly strong rally yesterday, in the absence of any real news overnight," said Adam Cole, head of FX strategy at RBC Capital Markets. A large part of the rally in sterling has been driven by a fall in the dollar, with a cooling in U.S. inflation driving hopes that the Fed might slow down on its aggressive rate hikes. "I think it's more of a grind lower from here, rather than the sort of explosive losses we saw back in September," he said.

☆ IMF backs UK plan for $65 billion of budget tightening
▼ + stars: | 2022-11-18 | by ( David Milliken | ) www.reuters.com time to read: +1 min

LONDON, Nov 18 (Reuters) - The International Monetary Fund's managing director, Kristalina Georgieva, said she had spoken with British finance minister Jeremy Hunt on Friday to welcome his latest plan for 55 billion pounds ($65 billion) of budget tightening. "It strikes the right balance between fiscal responsibility and protecting growth and vulnerable households," Georgieva said in a brief statement on social media. loadingThe IMF had criticised Hunt's predecessor, Kwasi Kwarteng, for previous budget plans in September which included 45 billion pounds of unfunded tax cuts. Hunt's plan represents tax rises and spending cuts equivalent to 2% of gross domestic product by the 2027-28 financial year. ($1 = 0.8412 pounds)Reporting by David Milliken; Editing by Alistair Smout and James DaveyOur Standards: The Thomson Reuters Trust Principles.

☆ From Apollo to DZ Bank, funds snap up bargains in UK pension scramble
▼ + stars: | 2022-11-18 | by ( Nell Mackenzie | ) www.reuters.com time to read: +4 min

REUTERS/Hannah McKay/File PhotoSummarySummary Companies Pension funds still need to raise cashCredit funds pick up bargains from pension fund salesSome credit funds already sitting on profitsLONDON, Nov 18 (Reuters) - Credit funds at Blackstone, Apollo, DZ Bank and Astra Asset Management picked up bargains from UK pension funds during their scramble for cash, and some say pension schemes are still offloading assets as pressures persist. Hedge funds and private equity firms have taken advantage of the forced sales to snap up deals - including certain portions of collateralised loan obligations (CLOs), securities that pension funds invest in. The credit funds are already sitting on juicy profits on some of these trades. This is because these pension funds must match their portfolios to what they will owe retired members. Even though the markets have calmed, some pension funds are still dealing with the implications," said Mody.

He froze until 2028 a threshold at which employers start to pay social security contributions, which will cost companies more. Public spending would grow more slowly than the economy but rise in overall terms, he said. It now expects gross domestic product to contract by 1.4% next year compared with its projection in March for growth of 1.8%. The OBR forecasts GDP growth of 1.3% in 2024 and 2.6% in 2025, compared with previous forecasts of 2.1% and 1.8% respectively. Thursday's forecasts by the OBR showed that target would be met in the 2027/28 financial year.

☆ Shares and pound splutter as UK dishes out budget gruel
▼ + stars: | 2022-11-17 | by ( Marc Jones | ) www.reuters.com time to read: +6 min

[1/3] Pound and Dollar banknotes are seen in this picture illustration taken June 13, 2017. Pound and UK Gilt recover from 'mini budget' turmoilOvernight in Asia, grim signals from Micron Technology about excess inventories and sluggish demand sent chipmaker stocks sprawling. Mainland Chinese shares also wobbled, with blue chips there (.CSI300) falling 0.5% having ripped 10% higher this month. Traders will also scrutinise speeches from Fed officials on Thursday for hints about rate hikes. Crude oil steadied in Europe after settling more than a dollar lower overnight, following the resumption of Russian oil shipments via the Druzhba pipeline to Hungary and as rising COVID-19 cases in China weighed on sentiment.

☆ UK economy set to shrink next year, Hunt says in budget speech
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

Since then, Britain's economy has come under strain from an inflation rate now above 11%, a slowing global economy and political and severe financial market volatility during Liz Truss's brief term as prime minister. Hunt said the OBR forecasts laid out "starkly the impact of global headwinds on the UK economy" as he started a speech to parliament on Thursday. The OBR forecast gross domestic product would grow by 1.3% in 2024 and by 2.6% in 2025, Hunt said, compared with its previous forecasts for growth of 2.1% and 1.8% respectively. Hunt said the OBR judged that Britain - where high inflation is creating a cost-of-living crisis - is already in recession. Hunt had warned of more pain in his budget statement in the days leading up to Thursday's announcement.

Any crunch for Britain's small businesses, which often lack the scale to pass on cost rises to customers as easily as bigger rivals, could deliver a new economic body blow. "How are we going to get out of this hole if it's not small businesses? "But there's no question that small businesses now have less capacity to increase their borrowing because you've got a slowing economy." Indeed small companies in Britain see their access to credit at its worst level since 2015, according to a quarterly survey by the FSB of 1,383 small business owners. Many small companies have also yet to repay state-backed loans extended to prop them up during COVID lockdowns, making their credit profiles increasingly unattractive.

☆ Morning Bid: Bear Hunt
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +5 min

Long-term sovereign bond yields have been falling sharply all week in advance of finance minister Jeremy Hunt's new budget, dragged down largely by U.S. disinflation hopes. UK 10- and 30-year gilt yields outperformed, however, dropping to their lowest since early September before backing up slightly on Thursday. U.S. housing starts numbers out later will give another glimpse at the state of the ailing property sector. Reverberations continued around the world from this month's latest implosion in the crypto universe and the failure of the FTX exchange. Major crypto player Genesis Global Capital suspended customer redemptions in its lending business on Wednesday, citing the FTX collapse.

☆ Britain's budget: What you need to know
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 17 (Reuters) - Finance minister Jeremy Hunt will bury Britain's failed "Trussonomics" experiment on Thursday by cutting spending and raising taxes, moves that he and Prime Minister Rishi Sunak say are needed to restore investor confidence. He has warned of "tough but necessary" measures in the budget on top of the reversal of most of the unfunded tax cuts promised by former Prime Minister Liz Truss and which rapidly brought her down. * Britain's economy is still below its pre-COVID size and is probably already in recession, with 11% inflation creating a cost-of-living crisis. * "We need fiscal and monetary policy to work together" to beat inflation, Hunt will say. * The independent Office for Budget Responsibility (OBR) will report on the state of public finances after Hunt speaks.

☆ UK finance minister announces tax hikes and spending cuts, says country is in recession
▼ + stars: | 2022-11-17 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +2 min

U.K. Finance Minister Jeremy Hunt is set to announce a sweeping package of tax hikes and spending cuts in his Autumn Statement as he seeks to plug a gaping hole in the country's public finances. Finance Minister Jeremy Hunt, in his hotly anticipated inaugural Autumn Statement, outlined around £30 billion in spending cuts and £25 billion in tax hikes. "Unfunded tax cuts are as risky as unfunded spending," Hunt told the House of Commons. "We must continue a relentless fight to bring (inflation) down, including a rock-solid commitment to rebuild our public finances," Hunt said. The finance minister also confirmed that the energy industry will be hit with an expanded windfall tax of 35% up from 25%.

However, Biden said the weapon was probably not fired by Russia, although the investigation was ongoing. NATO ambassadors will hold an emergency meeting on Wednesday with a news conference due around 11.30 GMT. The European common currency was then knocked off that high, falling as low as $1.028 after news of the explosion in Poland sent traders to the safety of the dollar, which also caused falls in equities. "Geopolitical risks continue to hang over currency markets and are likely to remain a key driver of volatility," she said. The greenback was also down 0.15% on the Swiss franc at 0.9418, near Tuesday's seven-month low, and the dollar index, which tracks the greenback against six main peers, was 0.24% lower at 106.26.

☆ UK to turn page on 'Trussonomics' with budget plan
▼ + stars: | 2022-11-16 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

He and Sunak say they must now go further. Critics say a return to austerity is unnecessary, will hurt millions of households and will deepen the expected recession. How soon spending cuts and tax rises come will be key for the short-term economic outlook. Hunt risks reviving tensions within the ruling Conservative Party, many of whose members were already upset at the scale of tax increases he announced when finance minister. The budget statement will be accompanied by forecasts from the Office for Budget Responsibility which are likely to echo the BoE's message that Britain is heading for a long recession.

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