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☆ UK government borrows less than expected in October, but worse to come
▼ + stars: | 2022-11-22 | by ( Andy Bruce | ) www.reuters.com time to read: +2 min

The Office for National Statistics (ONS) said headline public sector net borrowing totalled 13.549 billion pounds ($16 billion) last month. A Reuters poll of economists had pointed to a higher reading of 22 billion pounds, largely because the figures were expected to show large first payments under the government's energy bill support to households and energy suppliers. Tuesday's data showed a relatively modest 3.4 billion pounds of "other" subsidies - an initial indicative estimate of the energy bill support measures. Samuel Tombs, chief UK economist at consultancy Pantheon Macroeconomics, said the full cost of these measures would show up in the coming months. ($1 = 0.8447 pounds)Reporting by Andy Bruce, Editing by Kylie MacLellan, Paul Sandle and Raissa KasolowskyOur Standards: The Thomson Reuters Trust Principles.

☆ World Cup 2022: What fans can't do in Qatar
▼ + stars: | 2022-11-22 | by ( Amy Woodyatt | ) edition.cnn.com time to read: +7 min

CNN —After years of anticipation – and controversy – since Qatar was awarded the World Cup, the tournament finally got underway on Sunday in Doha. DrinkingThe sale and consumption of alcohol has been a highly contentious issue since Qatar was first announced as the World Cup host 12 years ago. FIFA President Gianni Infantino attends a press conference at the Qatar National Convention Center (QNCC) in Doha on November 19, 2022, ahead of the Qatar 2022 World Cup football tournament. But it’s not the lowest-scoring country taking part in the World Cup; Saudi Arabia scores a 7 and Iran scores a 14. There is no legal guarantee of press freedom or freedom of expression in Qatar, the US Embassy in Qatar notes.

☆ London’s rental market has become a ‘nightmare.’ Here’s why
▼ + stars: | 2022-11-21 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

“I think that I sent over 100 messages to different ads, and I only had [a] reply to 30 messages,” she told CNN Business. ‘You can’t hesitate’Matt Hutchinson, communications director at SpareRoom, told CNN Business that the capital has seen a “huge influx” of students, young people and overseas workers in recent months — demand that the pandemic kept bottled up. Landlords have been leaving the rental market as it becomes less and less profitable. Savills expects the average London rent — across all property types — to jump another 5.5% next year. Sally Vince, who works in commercial property, told CNN Business that after a “very stressful” time looking for her £700 ($832) room this summer, she took what she could get.

☆ 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.

And for financial markets it begs the question as to whether the extent of the monetary or fiscal tightening currently assumed will ever actually happen. The OBR reckons UK consumer price inflation has now peaked and will back off to a full-year rate of 7.4% next year. But assuming standing market forecasts for energy prices and BoE rates, it then sees inflation fall below zero for eight quarters from the middle of 2024. The BoE also expects headline inflation to plummet into 2024 - and its 'fan chart' of the range of possible outcomes also has an outside chance of deflation then too. Delaying spending cuts until after an election won't help much in that regard if indeed they're seen necessary at all.

The greenback has been falling in recent weeks as inflation data and Federal Reserve commentary implied that it could soon slow the pace of its interest rate hikes. "We had a short covering euro rally and dollar sell off that's probably run its course now. The euro was last down 0.56% against the dollar at $1.0337 after falling as much as 0.86% earlier in the session. It was last down 0.95% at $1.18 after earlier falling as much as 1.25% in a move that one analyst said was largely driven by sentiment about the dollar. The greenback was last up 0.68% against the Japanese yen on Thursday to 140.4950 after falling earlier in the day.

[1/2] Pound and U.S. dollar banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/IllustrationLONDON, Nov 17 (Reuters) - The dollar rose on Thursday as investors digested mixed U.S. economic data, while the British pound fell as the UK government unveiled its latest budget update. Yet the dollar climbed on Thursday after U.S. retail sales data for October, released on Wednesday, came in stronger than expected. Traders will also scrutinise speeches from numerous Fed officials on Thursday for hints about rate hikes. It plunged 3.7% on Thursday last week when U.S. consumer inflation data for October came in lower than expected.

☆ 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.

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.

☆ UK raises its windfall tax on energy companies and bets on nuclear power
▼ + stars: | 2022-11-17 | by ( Hanna Ziady | ) edition.cnn.com time to read: +3 min

It is also investing in nuclear power for the first time in decades. Together, these measures will raise £14 billion ($16.5 billion) next year and more than £55 billion ($65 billion) between 2022 and 2028. “I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices,” Hunt said in parliament on Thursday. The UK's Sizewell B nuclear power station, which is operated by France's EDF. Chris Radburn/AFP/Getty ImagesAs well as hiking energy taxes, Hunt affirmed a £700 million ($824 million) investment into Sizewell C, a nuclear power station operated by France’s EDF in the east of England.

☆ Nexperia-Newport Wafer: UK orders Chinese-owned company to sell Britain's biggest chipmaker
▼ + stars: | 2022-11-17 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN Business —The UK government has ordered a Chinese-owned company to unwind its takeover of Britain’s biggest chipmaker, citing national security concerns. Last week, the German government blocked the sale of a semiconductor factory to a Chinese-owned tech firm, citing national security concerns. “Nexperia does not accept the potential national security concerns raised,” it said. Newport Wafer bills itself as the UK’s largest semiconductor facility, making more than 35,000 wafer starts a month. It obtained full ownership of the Newport site in July 2021, after previously working with its former owners as a customer and as its second largest shareholder.

☆ Instant View: UK finance minister Jeremy Hunt outlines budget
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +5 min

Much of Hunt's budget had been widely expected, meaning markets offered a muted reaction. Sterling fell against the dollar, while UK government bond prices also eased, but remained clear of the day's lows. FOREX: Sterling fell 0.9% against the dollar to $1.1809 from $1.1845 prior to the budget. MARCUS BROOKES, CHIEF INVESTMENT OFFICER AT QUILTER INVESTORS, LONDON:"Today’s Autumn Statement has painted a bleak picture for the UK... Markets originally reacted well to the steady hand of Jeremy Hunt. SIMON HARVEY, HEAD OF FX ANALYSIS, MONEX EUROPE, LONDON:"The austerity’s going to be welcome (to the Bank of England) purely because there’s going to be less support for UK consumers.

☆ ‘Difficult decisions’: Britain announces higher taxes and spending cuts
▼ + stars: | 2022-11-17 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

London CNN Business —The United Kingdom has already entered a recession and is battling decades-high inflation, eroding standards of living for millions of people across the country. Britain’s painful planThe United Kingdom is in a recession that will last just over a year, the country’s budget watchdog said in a new forecast released Thursday. The United Kingdom is also increasing its windfall tax on oil and gas companies, while slapping a new levy on electricity generators. “We do have to take difficult decisions on public finances, so we’re going to grow public spending, but we are going to grow it more slowly than the growth in the economy,” Hunt said. The Bank of England has said the United Kingdom could be in a recession for two years.

☆ US stocks slump as Fed officials see more rate hikes in the pipeline to tame inflation
▼ + stars: | 2022-11-17 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

US stocks fell Thursday as central bank officials dampened hopes for a so-called Fed pivot. Fed regional presidents James Bullard and Esther George see more rate hikes in store to cool inflation. Separately, Kansas City Fed President Esther George told The Wall Street Journal it may not be possible to reduce such high levels of inflation without the economy shifting into a recession. She also said expectations for the Fed to stop raising rates were premature as she pointed to strong price pressures in labor-intensive service sectors. Americans are reportedly paying the biggest-ever premium for diesel at the pump after the fuel rose in price by 50%.

☆ No China is no fix for Britain’s industrial woes
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 17 (Reuters Breakingviews) - The British government has blocked the sale of a silicon wafer factory in Wales to a subsidiary of China’s Wingtech Technology (600745.SS). It’s a sign of the growing wariness among western governments of the risks involved in Chinese investment. The decision to force Netherlands-based Nexperia to sell most of its stake in the Newport Wafer Fab business isn’t illogical. The plant makes basic silicon wafers, used in chips for switches in domestic appliances such as vacuum cleaners. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ UK government unveils new budget after September's market meltdown
▼ + stars: | 2022-11-17 | 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 government unveils new budget after September's market meltdownCNBC's Arabile Gumede joins 'Squawk Box' to report the details of the U.K. government's latest budget proposal amid concerns about a recession.

☆ UK inflation tops 11% to hit its highest level since 1981 as food and energy prices soar
▼ + stars: | 2022-11-16 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

UK inflation jumped to a fresh four-decade high of 11.1% in October, from 10.1% the month before. The Bank of England has hiked interest rates to their highest since 2008 to try to cool inflation. Consumer prices were up 11.1% on the level a year ago — the highest rate of inflation since October 1981, the Office of National Statistics said Wednesday. The UK central bank has now raised rates eight times since February to reach 3%, the highest level since the 2008 financial crisis. Read more: Bank of England hikes interest rates by an outsized 75 basis points for the first time in over 30 years

LONDON, Nov 16 (Reuters) - The British government and the Bank of England are reforming insurers' capital rules, seen as a post-Brexit test of UK willingness to "unshackle" the City of London after leaving the European Union. The EU's Solvency II rules were introduced for insurers in 2016, after years of debate, when Britain was still an EU member. They are designed to ensure insurers hold enough capital to remain stable and can make payouts on policies. The Bank has already consulted on potential changes it says would release 45-90 billion pounds ($53.65-$107.30 billion) of investment capital. The second element involves easing reporting requirements, widening the range of assets insurers can invest in, and tweaks to how insurers' internal capital models are approved.

☆ UK MI5 chief says expulsion of Russian spies has delivered significant blow
▼ + stars: | 2022-11-16 | by ( Michael Holden | ) www.reuters.com time to read: +4 min

Summary UK spy chief says Russian aggression will last yearsMore than 400 Russian spies expelled from Europe, he saysChina playing 'long game' to influence future UK assetsLONDON, Nov 16 (Reuters) - The expulsion of more than 400 suspected Russian spies from across Europe this year has struck the "most significant strategic blow" against Moscow in recent history and taken Vladimir Putin by surprise, Britain's domestic spy chief said. McCallum said Britain had refused more than 100 Russian diplomatic visa applications on national security grounds since then. "The serious point is that the UK must be ready for Russian aggression for years to come," he said. The spy chief also said Chinese authorities were monitoring and intimidating the Chinese diaspora, with action ranging from forcible repatriation to assault. "To intimidate and harass UK nationals or those who have made the UK their home cannot be tolerated," McCallum said.

LONDON, Nov 16 (Reuters) - If financial markets bore the brunt of this year's interest rate shock, housing now stands in the firing line. With long-term U.S. fixed mortgage rates above 7% for the first time in 20 years, and more than double January rates, U.S. housing sales and starts are already feeling the heat. "We see a relatively greater risk of a meaningful rise in mortgage delinquency rates in the UK," Goldman said this month. While Australia and New Zealand have higher variable mortgage rates, British mortgage holders also have a higher vulnerability to rising joblessness. All of which bodes ill for UK house prices - although forecasts are still far from apocalyptic.

Before the U.S. data the euro, sterling and the Swedish crown had already risen sharply against the U.S. dollar as traders assessed a slew of economic data, including UK and euro zone job figures plus German economic sentiment. In Europe traders were also eying encouraging data such as German economic sentiment ZEW index, which rose in November. Jane Foley, head of FX strategy at Rabobank in London also pointed to other headlines supporting risk currencies against the dollar. The dollar index , which measures the currency against six counterparts including sterling and euro, was last down 0.46% at 106.162 after earlier touching 105.34, its lowest point since August. The Swedish crown rose sharply against the U.S. dollar after data showed inflation in Sweden rose less than expected in October.

☆ Sterling hits highest in almost 3 months ahead of UK budget as dollar tumbles
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +3 min

LONDON, Nov 15 (Reuters - The pound rose to its highest in almost three months against the U.S. dollar on Tuesday ahead of the UK government's budget this week, largely as the greenback came under fire. "Today is more about the high-beta currencies against the dollar making hay while the sun shines," CIBC Capital Markets head of G10 currency strategy Jeremy Stretch said. The pound was last up 1% against the dollar at $1.18785, while against the euro it was up 0.1% at 87.74 pence. "We do have the fiscal statement coming and that is going to be a sea of negativity. ($1 = 0.8428 pounds)Reporting by Amanda Cooper Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

LONDON, Nov 15 (Reuters) - The moment of truth is almost here for Britain's new prime minister Rishi Sunak and finance minister Jeremy Hunt. British markets have regained some poise after the carnage triggered by September's fiscal statement, but as the UK slips into recession, the outlook is far from rosy. Here's a look at some of the likely winners and losers from Thursday's budget. "Domestic UK equities are being treated with caution by investors both domestically and internationally," he said. snapshotA CRUDE TARGETEnergy companies have reported bumper profits this year, thanks to soaring crude oil and gas prices.

☆ FTSE 100 rises on Informa boost; pound weakens
▼ + stars: | 2022-11-14 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

SummarySummary Companies Media stocks lead sectoral gainsIndivior up on deal to buy Opiant PharmaUK budget, due later in the week, in focusFTSE 100 up 0.4%, FTSE 250 falls 1.2%Nov 14 (Reuters) - UK's export-oriented FTSE 100 climbed on Monday, lifted by events organiser Informa's over 5% jump and a weaker pound. The FTSE 100 (.FTSE) was up 0.4% by 0941 GMT. The company's announcement of raising its full-year earnings outlook pushed the broader FTSE 350 media index (.FTNMX403010) 1.0% higher. Among other stocks, Indivior (INDV.L) gained 0.9% after it said it would acquire Opiant Pharmaceuticals for approximately $145 million in cash. The domestically-focused FTSE 250 midcap index (.FTMC) dropped 1.2% after marking its biggest weekly gain in almost two years on Friday.

☆ Kate Winslet gave $20,000 to help a mom and her disabled daughter pay their soaring energy bills
▼ + stars: | 2022-11-13 | by ( Stephanie Stacey | ) www.businessinsider.com time to read: +3 min

Kate Winslet donated £17,000 ($20,100) to a family facing soaring energy bills, BBC News reported. Carolynne Hunter said the cash will cover the cost of her disabled daughter's life support equipment. The family's annual energy bill is already about £6,500, which covers the cost of Freya's life support, as well as heating their home. After reading about the Hunters' struggle online, Winslet and her family donated £17,000 to their GoFundMe and contacted the family to wish them well. "We're still freezing and we're not even at minus temperatures yet," said Carolynne Hunter, per BBC Scotland.

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