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But Broadbent's concentration on the likely peak terminal rate next year is what matters most. For context, that UK terminal rate, now pencilled in for around the middle of 2023, rocketed almost two full percentage points from just prior to the botched mini-budget to as high as 6.25%. Fed terminal rates, now targeted about March next year, have jumped 150 bps to 5% over the past two months. And Morgan Stanley, for example, see a UK terminal rate as low as 4% - a huge drop from current market pricing. The stubborn refusal of terminal rate pricing to return to where it was last month reflects the extent of those jitters.

☆ Lurking behind Britain’s political mess is an economy on the edge
▼ + stars: | 2022-10-21 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

London CNN Business —The spectacle surrounding Liz Truss, who on Thursday secured her fate as the shortest-serving prime minister in UK history, has quickly given way to a frenetic race to determine who will replace her. 10 Downing Street next will inherit an economic mess with no easy fixes. “A key focus for the next Prime Minister and their chosen Chancellor needs to be fiscal responsibility,” Carl Emmerson, deputy director of the Institute for Fiscal Studies, said in a statement on Friday. An economy in recessionEconomists agree that if the United Kingdom isn’t already in recession, one is likely to arrive soon. The cost of uncertaintyTruss has said the Conservative Party will install a new prime minister within a week.

"The MPC (Monetary Policy Committee) is likely to respond relatively promptly to news about fiscal policy," Broadbent said in the speech delivered at Imperial College in London. Despite falling in recent days, the expectations financial markets for the BoE's Bank Rate to peak at about 5.25% was "by some distance the largest rise in market interest rates between MPC forecasts since the Committee was founded," Broadbent said. Investors further reined in their expectations of a full percentage-point interest rate increase by the BoE next month and British government bond future prices rose as Broadbent spoke. Rate futures put a 17% chance on a 100 basis-point increase on Nov. 3, down from 25% earlier on Thursday. A whole percentage-point rate hike was seen as a near certainty before Truss was forced to backtrack on her unfunded tax cut plans.

☆ Investors rein in BoE rate hike bets on Broadbent comments
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +2 min

Such a big increase in Bank Rate looked a near certainty before Truss was forced to backtrack on her unfunded tax cut plans this month. The 30-year gilt yield was up by about a basis points at 4.000% at 9:51 am (0851 GMT), having touched a session high 4.103% earlier. The yield on 20-year British government bonds similarly rose on Thursday, up about two basis points on the day, having also fallen sharply on Wednesday. Two-year gilt yields were up by 11 basis points on Thursday. But the difference in yield between gilts and similar German and U.S. government bonds remains significantly wider than before the crisis began.

☆ Sterling weakens as Truss clings to power, markets dial back rate-hike bets
▼ + stars: | 2022-10-20 | by ( Lucy Raitano | ) www.reuters.com time to read: +3 min

British Prime Minister Liz Truss battled to retain her grip on power, a day after a second top minister quit and rowing and jostling broke out among her lawmakers in parliament. Analysts said a dialling back of aggressive rate hike bets following comments from the BoE's Ben Broadbent also weighed on sterling. Investors reined in further their bets of a full percentage-point interest rate increase by the BoE next month following the comments. "The dip in sterling is more driven by monetary policy than politics," said Colin Asher, senior economist at Mizuho Bank. "Broadbent noted that the policy rate may not need to go up as much as markets are pricing and short-term gilt yields and sterling both declined."

☆ Sterling rallies as pressure on UK PM Truss mounts
▼ + stars: | 2022-10-20 | by ( Lucy Raitano | ) www.reuters.com time to read: +3 min

British Prime Minister Liz Truss is meeting Graham Brady, the head of the 1922 Committee of Conservative lawmakers, a source in Truss's Downing Street office said. Register now for FREE unlimited access to Reuters.com RegisterAgainst this backdrop, the pound rose 0.5% to $1.1260 , having earlier traded 0.4% down. Analysts said a dialling back of aggressive rate hike bets following comments from the BoE's Ben Broadbent also weighed on sterling. Investors reined in further their bets of a full percentage-point interest rate increase by the BoE next month following the comments. Rating agencies S&P and Moody's review UK sovereign ratings on Friday, another potential headwind for British markets.

☆ UK gilts rise but week of uncertainty beckons as Truss quits
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

Investors further scaled back their bets on an outsized 1% point interest rate hike next month by the Bank of England. Deputy Governor Ben Broadbent questioned aggressive pricing in markets of future rate hikes in a speech earlier on Thursday. Twenty- and 30-year gilt yields , which had fallen as much as 13 basis points (bps) earlier in the day, were down 7 bps as of 1442 GMT. "UK financial market reaction to Liz Truss's resignation today has been fairly sanguine," said Daniel Mahoney, an economist at Handelsbanken. Register now for FREE unlimited access to Reuters.com RegisterReporting by Andy Bruce Editing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

☆ Tesla and Truss, 5% and 150
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +4 min

A Tesla model 3 car is seen in their showroom in Singapore October 22, 2021. read more The latest European tech sector earnings on Thursday were downbeat, too. Bank of England Deputy Governor Ben Broadbent said the BoE would respond to changes in Truss's tax and spending policies. read moreKey developments that should provide more direction to U.S. markets later on Thursday:* European Union summit in Brussels* U.S. Oct Philadelphia business index. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Rep. Marie Newman and her husband are packing their stock portfolio with COVID-19 vaccine makers and other pandemic-sensitive companies
▼ + stars: | 2021-04-21 | by ( Kimberly Leonard | Warren Rojas | ) www.businessinsider.com time to read: +11 min

Democratic Rep. Marie Newman's husband has an active stock portfolio. Jim Newman, chief operating officer at Figo Pet Insurance, bought and sold stock in companies that either soared or sputtered during the pandemic, including Pfizer and Moderna, the companies behind the nation's two leading COVID-19 vaccines. Financial disclosures show Jim Newman sold up to $65,000 in Moderna stock on January 2. By February, he turned his interest to Pfizer, twice trading as much as $15,000 worth in the company's stock shares that month. For instance, Newman sold as much as $250,000 in Netflix stock in January, as much as $50,000 in Apple stock in February, and as much as $50,000 in Salesforce stock in January.

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