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☆ UK needs new plan to reverse hit to living standards, researchers say
▼ + stars: | 2023-12-04 | by ( ) www.reuters.com time to read: +2 min

People walk alongside the City of London financial district in London, Britain, October 25, 2023. REUTERS/ Susannah Ireland/File Photo Acquire Licensing RightsLONDON, Dec 4 (Reuters) - Britain needs a new economic strategy to reverse 15 years of falling living standards and worsening inequality, a leading think tank and an academic research centre said on Monday. "There is no excuse for fatalism," Torsten Bell, chief executive of the Resolution Foundation, said. "Closing the gap with peers like Australia, France and Germany would deliver huge living standards gains, with typical households over 8,000 pounds better off." ($1 = 0.7881 pounds)Writing by William Schomberg; Editing by Daniel WallisOur Standards: The Thomson Reuters Trust Principles.

Persons: Susannah Ireland, Jeremy Hunt, Keir Starmer, Torsten Bell, William Schomberg, Daniel Wallis Organizations: City, REUTERS, Foundation, London School of Economics, Centre for Economic, Labour Party, Conservative Party, Starmer's Labour, Thomson Locations: London, Britain, Australia, France, Germany, Birmingham, Manchester

☆ UK's Hunt says he hopes to reverse public investment freeze
▼ + stars: | 2023-12-04 | by ( ) www.reuters.com time to read: +2 min

[1/2] British Chancellor of the Exchequer Jeremy Hunt speaks at the Resolution Foundation, in London, Britain December 4, 2023. REUTERS/Hollie Adams Acquire Licensing RightsLONDON, Dec 4 (Reuters) - British finance minister Jeremy Hunt said on Monday that he hoped in future to reverse the decline in public investment which is forecast in the government's latest budget plans. "I don't think you want declining public investment. And I very much hope we'll be able to get back into a place where we don't have to do that," Hunt said at an event hosted by the Resolution Foundation think tank. In government budget forecasts published last month, British public sector net investment is forecast to fall steadily from 2.6% of gross domestic product in the current financial year to 1.8% in the 2028/29 financial year.

Persons: Jeremy Hunt, Hollie Adams, we'll, Hunt, Keir Starmer, David Milliken, Kate Holton Organizations: REUTERS, Labour Party, Labour, Thomson Locations: London, Britain, British

☆ Microsoft's $3.2 bln UK investment to drive AI growth
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: +2 min

Britain's Prime Minister Rishi Sunak and Microsoft President Brad Smith attend the AI Safety Summit in Bletchley Park, near Milton Keynes, Britain, November 2, 2023. Britain, where the economy is forecast to be sluggish in the coming years, is pushing for private investment to help fund new infrastructure, particularly in growth industries like AI. "Today's announcement is a turning point for the future of AI infrastructure and development in the UK," Sunak said in a statement on Thursday. Since then, the UK regulator waved through a restructured version of Microsoft's $69 billion acquisition of Activision Blizzard , putting Britain back in Microsoft's favour. The investment includes a training plan to help ensure Britons have the skills they need to build and work with AI, it added.

Persons: Rishi Sunak, Brad Smith, Toby Melville, Sunak, Microsoft's, Smith, Jeremy Hunt, Sarah Young, Elaine Hardcastle Organizations: Britain's, Microsoft, REUTERS, U.S ., Activision Blizzard, Thomson Locations: Bletchley Park, Milton Keynes, Britain, Microsoft's, London

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 28, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsLONDON, Nov 28 (Reuters) - The EU is falling behind Britain in tapping into savers' money to boost the stock market, despite reforms in continental Europe being a step in the right direction, an official with Germany's bourse told Reuters. For Maassen there is an opportunity in Europe to rival US capital markets. Maassen urged policymakers to speed up the implementation of the Capital Markets Union, a longstanding project to create a single market for capital beyond national borders. Earlier this month, European Central Bank President Christine Lagarde called for a capital markets union, with a single supervisor and trading infrastructure, to finance its digitalisation and green transition.

Persons: Stefan Maassen, Jeremy Hunt, Hunt, ThyssenKrupp, Maassen, Germany's, Christine Lagarde, Lagarde, Pablo Mayo Cerqueiro, Anousha Sakoui, Christina Fincher Organizations: REUTERS, Staff, Germany's bourse, Reuters, Capital Markets, Deutsche, Frankfurt Stock Exchange, Schott Pharma, OLB Bank, DKV, New York Stock Exchange, EU, Capital Markets Union, European Union, European Central Bank, ., Thomson Locations: Frankfurt, Germany, EU, Europe, we're, U.S

☆ Bank of England should look more at money supply, lawmakers say
▼ + stars: | 2023-11-27 | by ( David Milliken | ) www.reuters.com time to read: +3 min

A bus passes the Bank of England in the City of London, Britain, February 14, 2017. "Climate change is the most-cited example of the expansion of the remit," committee chair George Bridges, a Conservative former Brexit minister, told Reuters. The House of Lords committee set up the inquiry in March, following a surge in inflation to a 41-year high last year. The central bank is midway through its own forecasting review led by former U.S. Federal Reserve Chair Ben Bernanke. The House of Lords committee said parliament should have more opportunity to debate these changes, and should conduct in-depth reviews of the BoE's work every five years.

Persons: Hannah McKay, BoE, Mervyn King, George Bridges, Ben Bernanke, Jeremy Hunt, Bridges, David Milliken, William Schomberg Organizations: Bank of England, City of, REUTERS, Economic Affairs Committee, Conservative, Reuters, U.S . Federal, Thomson Locations: City, City of London, Britain, Ukraine

☆ UK's Sunak hails $37 billion investments before FDI summit
▼ + stars: | 2023-11-26 | by ( Alistair Smout | ) www.reuters.com time to read: +4 min

Australian funds IFM Investors and Aware Super will pump 10 billion pounds and 5 billion pounds, respectively, into projects ranging from infrastructure and energy transition to affordable housing, Sunak's Downing Street office said in a statement. Spanish power giant Iberdrola (IBE.MC) will add 7 billion pounds to its investment plans in Britain, which include transmission and distribution electricity networks, it said. France last year overtook Britain as the European country with the highest number of new FDI projects. French President Emmanuel Macron announced 13 billion euros ($14.18 billion)of investment commitments in his country at a similar FDI gathering in May. It wants to deal with one person," investment minister Dominic Johnson told Reuters ahead of Monday's event at Hampton Court.

Persons: Rishi Sunak, Ian Forsyth, Sunak's, Sunak, Emmanuel Macron, Stephen Schwarzman, David Solomon, Goldman Sachs, Jamie Dimon, JP Morgan Chase, Dominic Johnson, Jeremy Hunt, IFM, William Schomberg, Alistair Smout, Louise Heavens Organizations: Britain's, Nissan, IFM, Microsoft, Britain, Blackstone, Hampton Court, Thomson Locations: Sunderland, Britain, Spanish, Hampton, London, France, Germany, England, British

☆ Nissan invests $1.4 bln to build two new EV models in Britain
▼ + stars: | 2023-11-24 | by ( Nick Carey | ) www.reuters.com time to read: +3 min

Nissan has made its electric Leaf model in Sunderland for years and will continue to do so, with batteries supplied by a small plant at the site. It announced a $1.4 billion investment in 2021 to build a second, 9 gigawatt-hour (GWh) battery plant in Sunderland with Chinese partner Envision AESC. Nissan did not comment on the value of any subsidies or guarantees being provided by Britain. [1/4]Britain's Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt attach a Nissan badge to a car as they visit the car manufacturer, Nissan, in Sunderland, Britain, November 24, 2023. But Sunak, who became prime minister a year ago, is having some success turning that around.

Persons: Rishi, Sunak, Nissan's, Alan Johnson, Rishi Sunak, Jeremy Hunt, Chancellor, Makoto Uchida, Brexit, Nick Carey, Sarah Young, Paul Sandle, Sonali Paul, Mark Potter Organizations: Nissan, Investment Summit, Britain, BBC, Britain's, India's Tata Motors, Rover, Thomson Locations: Sunderland, England, Britain, Europe, EVs

☆ UK consumer confidence jumps despite lingering inflation pain
▼ + stars: | 2023-11-24 | by ( Suban Abdulla | ) www.reuters.com time to read: +2 min

Despite lingering cost-of-living pressures, GfK's headline consumer confidence index was stronger than anticipated in November, increasing to -24 from October's three-month low of -30. November's reading was above the -28 forecast in a Reuters poll of economists, and follows a sharp fall the month before. While British consumer price inflation fell significantly from a 41-year high of 11.1% just over a year ago to 4.6% in October, households are still grappling with the highest inflation rate among major rich economies. Official data published last week showed shoppers spent less in October as finances remain stretched. GfK conducted its poll of 2,000 people from Nov. 1 to Nov. 14.

Persons: GfK, Joe Staton, Andrew Bailey, Jeremy Hunt's, Staton, Suban Abdulla, David Milliken Organizations: Bank of England, Thomson

☆ Euro profits from better euro zone data; U.S. market shut
▼ + stars: | 2023-11-23 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

REUTERS/Marcos Brindicci/File Photo Acquire Licensing RightsLONDON, Nov 23 (Reuters) - The euro edged up on Thursday after data suggested the downturn in the euro zone economy may be starting to ease, although holidays in the U.S. and Japan kept trading activity muted. Earlier in the day, the euro rose against most other major currencies, following the surveys. The survey showed the euro zone economy is on track to contract again in the fourth quarter. Its PMI rose to 43.8 from 43.1, beating the poll expectation for 43.4 but was still below breakeven. The euro was up last up 0.18% on the day at $1.09075, having traded as high as $1.0931 earlier in the day.

Persons: Marcos Brindicci, There's, Michael Brown, Brown, Geert Wilders, Sterling, Jeremy Hunt, Changpeng Zhao, Bitcoin, Vidya Ranganathan, Lincoln, Emelia, Marguerita Choy, Christina Fincher Organizations: REUTERS, PMI, Saxo Bank, British, Federal, University of Michigan, Fed, Bank of Japan, Thomson Locations: Buenos Aires, Argentina, U.S, Japan, Germany, EU, Wednesday's, Netherlands, Singapore

☆ Euro bounces as investors cling to sliver of positive euro zone data
▼ + stars: | 2023-11-23 | by ( Amanda Cooper | ) www.reuters.com time to read: +5 min

REUTERS/Marcos Brindicci/File Photo Acquire Licensing RightsLONDON, Nov 23 (Reuters) - The euro rose on Thursday for the first time this week, after data suggested the downturn in the euro zone economy may be starting to ease, although holidays in the United States and Japan kept trading activity muted. The euro rose broadly, gaining the most against the Swedish crown , after the Swedish central bank left rates unchanged, while also gaining on the yen and the Swiss franc. The survey showed the euro zone economy is on track to contract again in the fourth quarter. Its PMI rose to 43.8 from 43.1, beating the poll expectation for 43.4 but was still below breakeven. Sterling was last up 0.5% on the day at $1.2558, having risen to a high of $1.2575 after the PMI data.

Persons: Marcos Brindicci, There's, Michael Brown, Brown, Geert Wilders, Sterling, Jeremy Hunt, Jeff Ng, Changpeng Zhao, Vidya Ranganathan, Lincoln, Emelia Organizations: REUTERS, Swiss, PMI, European Central Bank, Fed, University of Michigan, Sumitomo Mitsui Banking Corporation, Markets, Bank of Japan, Thomson Locations: Buenos Aires, Argentina, United States, Japan, Germany, Swedish, EU, Wednesday's, Netherlands, Asia, Singapore

☆ Stocks maintain November reign, oil hit by OPEC doubts
▼ + stars: | 2023-11-23 | by ( Marc Jones | ) www.reuters.com time to read: +5 min

Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. Wall Street's benchmark S&P 500 (.SPX) is nearing a fresh high for 2023, with the S&P 500 and MSCI's all-country world index (.MIWD00000PUS) both up more than 8% this month alone. For MSCI world that is the best showing since November 2020 when markets got a major shot in the arm from COVID vaccine hopes. Germany's 10-year bund , the benchmark for the Europe, was fractionally higher on the day at 2.57% having touched 3% last month. Bitcoin fell by 0.77% on Thursday to $37,337 after it rose nearly 5% on Wednesday.

Persons: Tyrone Siu, Geert Wilders, Robert Alster, Viktor Orban, Wilders, Mark Rutte, Sterling, Jeremy Hunt, Changpeng Zhao, Marc Jones, Christina Fincher Organizations: REUTERS, PMI, ECB, Oil, Traders, Asset Management, European Union, Freedom Party, Labour, Green, People's Party for Freedom and Democracy, European, HK, Reuters, Treasury, UK Finance, OPEC, Thomson Locations: Exchange, Hong Kong, China, Europe, U.S, EU, Germany, Holland, Ukraine, Turkey, Asia, Pacific, Japan, Brent, Bitcoin

☆ Asia stocks hold gains as confidence grows on rate outlook
▼ + stars: | 2023-11-23 | by ( Selena Li | ) www.reuters.com time to read: +4 min

China's benchmark share index (.CSI300) fell 0.16% on Thursday, with the real estate sub-index (.CSI931775) retrieved earlier losses to gain 2.11%. Chinese government advisers will recommend to an annual policymakers' meeting that economic growth targets for next year be set at 4.5% to 5.5%, Reuters reported on Wednesday. Markets have generally been buoyant this month, with stocks rallying on expectations of a more benign interest rate backdrop. The next set of forward-looking flash November PMIs will help investors to assess recession risks and how quickly rate cuts might begin. The minutes of the European Central Bank's October meeting and flash PMIs for a host of European countries are Thursday's highlights.

Persons: Tyrone Siu, shrugged, Redmond Wong, Brent, Sterling, Jeremy Hunt, Changpeng Zhao, Bitcoin, Selena Li, Edmund Klamann, Stephen Coates Organizations: REUTERS, Bloomberg, Garden Holdings, HK, Reuters, U.S, The, Federal Reserve, Saxo Markets, Nikkei, Nasdaq, European Central, PMI, OPEC, FTSE, UK Finance, Thomson Locations: Exchange, Hong Kong, China, HONG KONG, Asia, Pacific, Japan, United States, The U.S, Greater China, Australia, Britain, U.S

☆ Holiday thins trading after data slows dollar's decline
▼ + stars: | 2023-11-23 | by ( Vidya Ranganathan | ) www.reuters.com time to read: +4 min

With markets shut in Japan and the United States for the Thanksgiving holiday, currencies barely moved and cash U.S. Treasuries weren't traded in Asia. By 0530 GMT, however, the euro was 0.15% higher at $1.0902 and the dollar index was a tad weaker at 103.71. Adding to investors' confusion, data showed orders for long-lasting U.S. manufactured goods fell more than expected in October, signalling an economy cooling considerably after hot third-quarter growth. The dollar's rebound comes after a three-week long spell of weakness driven by evidence of a slowing economy and disinflation, leading markets to price out any additional Fed rate hikes. The forward-looking flash November purchasing manager indexes (PMIs) are also due out globally on Thursday and should help investors assess recession risks and how quickly rate cuts will begin.

Persons: Marcos Brindicci, Treasuries weren't, Jeff Ng, Treasuries, policymaker Mario Centeno, Joachim Nagel, Sterling, Jeremy Hunt, Changpeng Zhao, Vidya Ranganathan, Lincoln Organizations: REUTERS, Rights, U.S, Federal, University of Michigan, Sumitomo Mitsui Banking Corporation, Fed, Bank of Japan, European Central Bank, Governing, PMI, Thomson Locations: Buenos Aires, Argentina, Rights SINGAPORE, Japan, United States, Asia, Britain, U.S

☆ Morning Bid: Watching what the ECB giveth
▼ + stars: | 2023-11-23 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Vidya Ranganathan. The forward-looking flash November PMIs due out globally should help investors assess recession risks and how quickly rate cuts will begin. Interest rate futures show the market is pricing in rate cuts by April and more aggressively so in June . Later on Thursday, Sweden's central bank will announce its latest policy decision in what is expected to be a very close call on whether to hike again. A Reuters poll showed 10 of 19 economists looked for a rise, while market pricing is leaning against a move.

Persons: Vidya Ranganathan, haven't, Mario Centeno, Joachim Nagel's, Christine Lagarde's, Jeremy Hunt's, Van Haaren, ECB's Isabel Schnabel, Robert Holzmann, Francois Villeroy de, Edmund Klamann Organizations: Vidya, European Central, PMI, ECB, Reuters, Ubezpieczen SA, Virgin Money, Bank of France, Thomson Locations: Japan, United States, Britain, U.S, Sweden's

☆ Asia stocks hold recent gains as confidence grows on rate outlook
▼ + stars: | 2023-11-23 | by ( Selena Li | ) www.reuters.com time to read: +4 min

Investors are also looking to Chinese policymakers for clues on possible support for the long-suffering property market, in line with broader growth targets they are hammering out. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged down 0.11% in thin trading, with Japan and the United States on holiday. Chinese government advisers will recommend to an annual policymakers' meeting that economic growth targets for next year be set at 4.5% to 5.5%, Reuters reported on Wednesday. Markets have generally been buoyant this month, with stocks rallying on expectations of a more benign interest rate backdrop. The next set of forward-looking flash November PMIs will help investors to assess recession risks and how quickly rate cuts might begin.

Persons: Tyrone Siu, shrugged, Redmond Wong, Brent, Sterling, Jeremy Hunt, Changpeng Zhao, Selena Li, Edmund Klamann Organizations: REUTERS, Federal Reserve, Saxo Markets, Nikkei, Reuters, Nasdaq, OPEC, FTSE, UK Finance, Thomson Locations: Exchange, Hong Kong, China, HONG KONG, Asia, Pacific, Japan, United States, U.S, Greater China, Australia, Britain

☆ UK's Autumn Statement laid bare how much economic damage Conservatives have caused: James Murray
▼ + stars: | 2023-11-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUK's Autumn Statement laid bare how much economic damage Conservatives have caused: James MurrayJames Murray, the U.K.'s shadow financial secretary to the Treasury, discusses Chancellor of the Exchequer Jeremy Hunt's Autumn Statement and the country's economic outlook.

Persons: James Murray James Murray, Jeremy Hunt's Organizations: Treasury

[1/2] British Prime Minister Rishi Sunak speaks during the opening session of the Global Food Security Summit at Lancaster House in London, Britain November 20, 2023. Years of political churn - with five prime ministers and a non-stop ministerial carousel since the 2016 Brexit vote - have shaken Britain's reputation for stability among investors. Some executives say the country, long a magnet for FDI, has simply taken them for granted. But companies and investors say that a focus by regulators on limiting costs for bill-payers in sectors such as water, telecoms and energy has crimped investment. British investment minister Dominic Johnson said the government would be in listening mode at the gathering on Nov. 27 to hear how it can remove hurdles.

Persons: Rishi Sunak, Dan Kitwood, Sunak, Emanuel Macron, Jack Paris, Paris, Jeremy Hunt, EY, Alina Osorio, Mikhail Taver, Richard Harrington, Harrington, Dominic Johnson, Johnson, Kate Holton, Sinead Cruise, Andy Bruce, Alexander Smith Organizations: British, Global Food Security, Lancaster House, Hampton Court, Partners, Reuters, European Union, United, Labour Party, India's Tata Group, Britain, AstraZeneca, Ireland, Thomson Locations: London, Britain, Hampton, France, Versailles, European, Germany, United States, Europe, Delaware

LONDON, Nov 23 (Reuters) - British voters are set to suffer a "living standards disaster", despite Finance Minister Jeremy Hunt's new tax cut plan, because of the unprecedented fall in household incomes over the course of a parliamentary term, a think tank said on Thursday. The think tank said household disposable income per person was expected to fall 1.5% in 2024, when adjusted for Britain's still high rate of inflation. "But those challenges have also made things far more difficult for households: this is what a living standards disaster looks like." And that then means having to make some really difficult decisions when it comes to public spending but also raising revenue," he told Reuters. ($1 = 0.8025 pounds)Reporting by David Milliken and Bill Schomberg; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

Persons: Jeremy Hunt's, Hunt, Rishi Sunak, Torsten Bell, Gareth Davies, Davies, David Milliken, Bill Schomberg, Sharon Singleton Organizations: Labour Party, Conservative, Reuters, Fiscal Studies, Treasury, Thomson

☆ Holiday thins trading after data nudges dollar higher
▼ + stars: | 2023-11-23 | by ( ) www.cnbc.com time to read: +4 min

With markets shut in Japan and the United States for the Thanksgiving holiday, currencies barely moved and cash U.S. Treasuries weren't traded in Asia. The dollar index rose overnight, bouncing from a 2-1/2 month low, after economic data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week. The weakness in the dollar has buoyed the yen , along with expectations the Bank of Japan may shift away from its ultra-loose monetary policy next year. The dollar index was just 0.03% lower at 103.84, with the euro unchanged at $1.0887. The forward-looking flash November purchasing manager indexes, or PMIs, are also due out globally on Thursday and should help investors assess recession risks and how quickly rate cuts will begin.

Persons: Treasuries weren't, Jeff Ng, Treasuries, policymaker Mario Centeno, Joachim Nagel, Sterling, Jeremy Hunt, Changpeng Zhao Organizations: U.S ., Federal Reserve, University of Michigan, Sumitomo Mitsui Banking Corporation, Fed, Bank of Japan, European Central Bank, Governing, PMI Locations: Japan, United States, Asia, Britain, U.S

☆ CNBC Daily Open: A Thanksgiving lull
▼ + stars: | 2023-11-23 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Last burst before a breakU.S. stocks ended Wednesday in positive territory before going on break today for Thanksgiving. Jack Ma pauses plansAlibaba founder Jack Ma is pausing his plans to sell Alibaba shares. Last week, regulator filings revealed Ma was looking to sell around $870 million worth of Alibaba shares.

Persons: Treasurys, Europe's, Jeremy Hunt, Altman's, Sam Altman, Helen Toner, Tasha McCauley, Ilya Sutskever —, Altman, Bret Taylor, Larry Summers, Adam D'Angelo, Nansen, hasn't, Changpeng Zhao, Jack Ma, Ma, Alibaba Organizations: New York Stock Exchange, CNBC, Finance, U.S, Treasury Locations: New York City, U.S

☆ Stocks maintain November reign, oil nagged by OPEC doubts
▼ + stars: | 2023-11-23 | by ( Marc Jones | ) www.reuters.com time to read: +5 min

[1/2] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 22, 2023. Traders were getting their moves in despite the annual U.S. Thanksgiving holiday scything volumes but there was plenty to keep them busy while they did it. Wall Street's benchmark S&P 500 (.SPX) is nearing a fresh high for 2023 and both it and MSCI's all-country world index (.MIWD00000PUS) are both up more than 8% this month alone. For the MSCI world index, that is the best showing since November 2020 when COVID-19 vaccine hopes were driving markets wild. Reporting by Marc Jones; Editing by Christina Fincher and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

Persons: Geert Wilders, Robert Alster, Viktor Orban, Wilders, Mark Rutte, Tayyip Erdogan, Sterling, Jeremy Hunt, Changpeng Zhao, Marc Jones, Christina Fincher, Jonathan Oatis Organizations: REUTERS, Staff, PMI, ECB, Oil, OPEC, Traders, Asset Management, Freedom Party, Labour, Green, People's Party for Freedom and Democracy, European, U.S, HK, Reuters, Europe, Thomson Locations: Frankfurt, Germany, Europe, U.S, European, France, Holland, Ukraine, Asia, Pacific, Japan, COVID, Brent, Bitcoin

☆ Why the UK government's tax cuts still leave workers worse off
▼ + stars: | 2023-11-23 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

British Finance Minister Jeremy Hunt that the U.K. economy would not enter a technical recession in 2023, while announcing the government's spring Budget. The U.K. National Insurance is a tax on workers' income and employers' profits to pay for state social security benefits, including the state pension. Touted by the Conservative party as the "largest ever tax cut for workers," the move nevertheless does not shield taxpayers from the effect of frozen tax thresholds that tip more of their income into higher tax brackets, as nominal wages rise. In March 2021, then-Finance Minister Rishi Sunak announced that the personal allowance (PA) and higher-rate thresholds (HRT) of income tax would be frozen for four years until April 2026. Alongside extending the freezes, Hunt in November 2022 froze the upper earnings limit for NI contributions and lowered the additional rate hold from £150,000 to £125,140 from April 2023.

Persons: Jeremy Hunt, Dan Kitwood, Rishi Sunak's, Hunt, Rishi Sunak, Torsten Bell, Paul Johnson Organizations: British, Getty, Finance, National Insurance, Labour Party, Rishi Sunak's Conservative, Insurance, Conservative, Treasury, Institute for Fiscal Studies

☆ Dollar climbs after U.S. labor, consumer sentiment data
▼ + stars: | 2023-11-22 | by ( Chuck Mikolajczak | ) www.reuters.com time to read: +4 min

"The fact that we are seeing a drop definitely suggests that the labor market is not cooling as quickly as markets or the Fed might have been expecting there," said Karl Schamotta, chief market strategist at Corpay in Toronto. Schamotta also said market participants were maintaining relatively high dollar positions before liquidity dries up before the U.S. Thanksgiving holiday on Thursday. The greenback extended gains after the University of Michigan's survey of consumer sentiment showed U.S. consumers' inflation expectations rose for a second straight month in November. UMich inflation expectationsThe dollar index rose 0.37% to 103.9, on track for its biggest one-day percentage gain since Nov 9. The Japanese yen weakened 0.82% to 149.61 per dollar, while Sterling was last trading at $1.249, down 0.37% on the day.

Persons: Karl Schamotta, Schamotta, CME's, policymaker Mario Centeno, Joachim Nagel, Sterling, Jeremy Hunt, Changpeng Zhao, Zhao, Chuck Mikolajczak, Will Dunham, Richard Chang Organizations: Labor Department, Reuters, United Auto Workers, UAW, Detroit's Big, Federal, Fed, University of Michigan's, European Central Bank, Investors, Thomson Locations: Toronto, U.S

NatWest Group bank logo and decreasing stock graph are seen in this illustration taken March 12, 2023. "I will explore options for a NatWest retail share offer in the next 12 months subject to supportive market conditions and achieving value for money," Hunt said on Wednesday. NatWest shares dipped on Hunt's comments and were last down 1.1% at 204.7 pence, compared with a 0.2% fall in the FTSE 100 (.FTSE) index. The stock is the worst performing FTSE 100 British bank stock this year, down more than a fifth, according to Eikon data. That investment turned sour for many and shares in the renamed holding company International Distributions Service (IDSI.L) are now worth 25% less than its 330 pence offer price.

Persons: Dado Ruvic, Jeremy Hunt, Hunt, Sid, Alasdair Haynes, Nigel Farage, Alison Rose, Iain Withers, Sinead Cruise, David Milliken, Sarah Young, William James, Elaine Hardcastle, Alexandra Hudson Organizations: NatWest Group, REUTERS, Companies, NatWest, Aquis, Royal Mail, Distributions Service, Alexandra Hudson Our, Thomson

SummaryCompanies UK business investment has lagged since Brexit"Largest business tax cut" in modern history-HuntTax break costs 11 bln stg a yearOBR forecasts 3 bln stg a year investment boostLONDON, Nov 22 (Reuters) - Britain's finance minister Jeremy Hunt made a tax break for business investment permanent on Wednesday, aiming to kickstart growth in the country's sluggish economy. Hunt hopes that by making permanent the tax break known as "full expensing", companies will spend more on new kit and technology, lifting productivity. This is the largest business tax cut in modern British history," Hunt said in his Autumn Statement on Wednesday. BT (BT.L), a beneficiary of the tax break as it is investing billions in building a new fibre network, welcomed Hunt's move. British business investment has trailed that of other developed economies, according to research from the International Monetary Fund.

Persons: Jeremy Hunt, Hunt, Hunt's, Philip Jansen, Jessica Taylor, Handout, Stephen Phipson, Robert Forrester, David Milliken, Kylie MacLellan, Sarah Young, Kate Holton, Alex Richardson Organizations: LONDON, BT, Labour, Conservatives, Britain's, REUTERS Acquire, International Monetary Fund, Vertu, BBC Radio, Thomson Locations: Britain, London, British

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