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☆ British PM Liz Truss axes finance minister, tax cuts that sent pound crashing
▼ + stars: | 2022-10-14 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Patrick-Smith-Circle-Byline-Template.Jpg | Patrick Smith | ) www.nbcnews.com time to read: +5 min

LONDON — Embattled British Prime Minister Liz Truss fired her finance minister and abandoned a flagship policy Friday, in a bid to save her job after her economic plan stoked weeks of market panic. Earlier, Truss removed Finance Minister Kwasi Kwarteng just 38 days after the pair took power. Kwarteng becomes the second shortest-serving chancellor of the exchequer, as the British finance minister is known. Truss' personal office confirmed the next finance minister will be Jeremy Hunt, a former health secretary and minister under successive Conservative governments. Crucially, the bank’s bond-buying program is set to end Friday, meaning the government must convince markets its economic plan is sound to avoid further chaos.

☆ Reactions: UK's Truss fires Kwarteng, set to U-turn on tax cuts
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +5 min

LONDON, Oct 14 (Reuters) - British Prime Minister Liz Truss fired her finance minister Kwasi Kwarteng and news reports said she will scrap later on Friday parts of the economic programme of big, unfunded tax cuts that they delivered last month. Consequently, the scope for a rally in gilts (move lower in yields) and sterling would seem to be limited." BENJAMIN NABARRO, ECONOMIST, CITI"The key issue in the near term is the contradiction between monetary and fiscal policy. RACHEL REEVES, OPPOSITION LABOUR PARTY'S FINANCE CHIEF"This humiliating u-turn is necessary - but the real damage has already been done. We may well be through the worst of the volatility but I fear that the UK is nowhere near out of the woods."

London CNN Business —UK Prime Minister Liz Truss has fired finance minister Kwasi Kwarteng and ditched a big part of her discredited economic strategy in a desperate bid to rescue her month-old premiership. “It was right, in the face of the issues we had, that I acted decisively to ensure that we had economic stability,” Truss said Friday. Kwarteng presented a “mini budget” just three weeks ago, promising tax cuts worth £45 billion ($50 billion) and increased borrowing with the hope of boosting UK economic growth. “Liz Truss’ reckless approach has crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage,” he said. Kwarteng had flown back from the IMF meeting in Washington, D.C., overnight for discussions with Truss.

To replace him, she appointed Jeremy Hunt, a former foreign and health secretary who had backed her rival Rishi Sunak in this summer's race to become Conservative Party leader. He is the fourth finance minister in as many months in Britain, where millions are facing a cost of living crisis. Kwarteng becomes Britain's shortest serving finance minister except for a predecessor who died suddenly in office in 1970. Christopher Chope, a veteran Conservative lawmaker and Truss supporter, said the party was now a laughing stock. "The markets have lost trust in the Conservative Party - and who can blame them?"

Two days later, a chastened Truss addressed her first news conference as prime minister to admit she had gone "further and faster" than markets expected and sacked her friend and finance minister Kwasi Kwarteng to try to appease her lawmakers. With her credibility in tatters, she is now fighting for her political survival. "But it is clear that parts of our mini budget went further and faster than markets were expecting. Truss has also lost an important ally and, according to one person close to her, an important source of support in Kwarteng. But a veteran Conservative insider said it was simply a case of survival.

☆ UK cliff edge arrives as Bank of England prepares to end its emergency bond buying
▼ + stars: | 2022-10-14 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

The Bank's Financial Stability Committee on Sep. 28 announced a two-week emergency purchase program for long-dated U.K. government bonds. Bloomberg | Bloomberg | Getty ImagesLONDON — The Bank of England's emergency bond-buying program draws to a close on Friday, with traders remaining on edge as volatility in the U.K. bond market looks set to continue. The central bank initially announced the two-week intervention in the long-dated bond market on Sep. 28, having been informed that a number of liability driven investment (LDI) funds — held by pension plans — were hours from collapse as U.K. government bond prices plunged. The BOE's Pill also highlighted that recent actions taken to ensure orderly market function and financial stability sought to preserve the effectiveness of monetary policy, but should not be considered monetary policy actions in themselves. Chris Lupoli, U.K. rates and inflation strategist at BNP Paribas , told CNBC Thursday that the Bank of England remained focused on the temporary purchases serving as a "backstop."

☆ British finance minister races back to London as pressure builds for another policy U-turn
▼ + stars: | 2022-10-14 | by ( Sam Meredith | ) www.cnbc.com time to read: +2 min

LONDON — U.K. Finance Minister Kwasi Kwarteng cut short his visit to the International Monetary Fund this week, dashing back to London amid reports Prime Minister Liz Truss is considering a U-turn on parts of her government's market-rocking tax cuts. Reuters reported, citing unnamed sources, that the finance minister planned to meet with colleagues to work on the government's medium-term budget plan. Kwarteng's abrupt departure from a series of international finance meetings in Washington, D.C. comes amid a growing political backlash against the Conservative government's proposed tax cuts. The British pound rose by 2% to trade at $1.1319 on Thursday, shrugging off stronger-than-expected U.S. inflation data. Meanwhile, long-dated U.K. government bonds — known as gilts — rallied on Friday morning, with 30-year yields trading at 4.38%.

☆ Putin is running low on long-range precision weapons, and he's wasting his dwindling supply terrorizing Ukrainians in cities far from the front lines, war experts say
▼ + stars: | 2022-10-14 | by ( Jake Epstein | ) www.businessinsider.com time to read: +8 min

Russian forces unleashed a barrage of long-range precision weapons on Ukrainian civilians and infrastructure this week. Russian forces, he said, do not have the capability to do this "three or four days a week for the next two years. Bombing civilians is 'unlikely' to break Ukraine's will to fightIt's unclear exactly how many long-range munitions Russian forces have left in the arsenal. Getty ImagesInsider was unable to independently verify the total number of long-range munitions left in the hands of the Russian forces. Gentile said that if Russian forces want to strike targets deeper in Ukraine, they don't really have a choice beyond long-range munitions.

☆ UK finance minister Hunt to set out govt's fiscal plan on Oct. 31
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: 1 min

New Chancellor of the Exchequer Jeremy Hunt leaves 10 Downing Street in London, Britain, October 14, 2022. REUTERS/Henry NichollsLONDON, Oct 14 (Reuters) - New British finance minister Jeremy Hunt will set out the government's medium-term fiscal plan on Oct. 31, the Treasury said in a statement on Friday, sticking to the date his predecessor had announced. The Treasury said Hunt, who was appointed on Friday after his predecessor Kwasi Kwarteng was fired by Prime Minister Liz Truss, would set out how the government would get debt falling as a percentage of GDP over the medium term. Register now for FREE unlimited access to Reuters.com RegisterReporting by Kylie MacLellan; Editing by Alistair SmoutOur Standards: The Thomson Reuters Trust Principles.

☆ UK finance minister Kwarteng confirms he has been sacked
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +1 min

Chancellor of the Exchequer Kwasi Kwarteng exits a car on Downing Street in London, Britain, October 14, 2022. REUTERS/Henry NichollsLONDON, Oct 14 (Reuters) - British finance minister Kwasi Kwarteng confirmed on Friday he had been sacked by Prime Minister Liz Truss, becoming the third chancellor to leave the government this year. I have accepted," Kwarteng said in a letter to Truss, which he published on Twitter. read more"It is important now as we move forward to emphasise your government's commitment to fiscal discipline. The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches," Kwarteng said.

☆ British pound jumps on reports UK government may reverse parts of its tax-cutting proposals
▼ + stars: | 2022-10-13 | by ( Sam Meredith | ) www.cnbc.com time to read: +1 min

In this photo illustration, the British pound is seen displayed. LONDON — Sterling jumped against the U.S. dollar on Thursday following multiple reports that the British government is in talks to scrap parts of its unfunded package of tax cuts. The British pound traded 1.5% higher at $1.1269 during afternoon deals in London, before paring gains on robust U.S. inflation data. Long-dated U.K. government bonds — known as "gilts" — rallied sharply, pushing yields down to just over 4.41%. Truss and Kwarteng have both insisted the government's proposals are necessary to get the economy growing.

☆ Strikes, possible blackouts and a plunging currency: Brits are being hit by a wave of bad news
▼ + stars: | 2022-10-13 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

'The recession has begun' The U.K. is the only G-7 economy not to have re-attained its pre-pandemic GDP level by the second quarter of 2022, Citibank Chief U.K. The ONS said GDP was only just returning to its pre-pandemic level, highlighting the challenge facing Prime Minister Liz Truss' "growth, growth, growth" agenda. "We now believe the recession in the U.K. has begun in the third quarter of 2022 and will likely last for three quarters. "The cost of living crisis is having a detrimental effect on individuals, not only financially, but physically and mentally too." Members of the CWU (Communication Workers Union) also continue to strike, including 115,000 postal employees of former state monopoly Royal Mail.

☆ Covid leads to long Covid, in governments as well as people
▼ + stars: | 2022-10-11 | by ( Brian Michael Jenkins | Brian Michael Jenkins Is An Army Combat Veteran Who Currently Serves As Senior Adviser To The President Of The Nonprofit | Nonpartisan Rand Corporation. His Latest Book Is | ) www.nbcnews.com time to read: +9 min

Unlike previous pandemics, however, Covid didn’t see the same offsets in unifying sentiment. There were many explanations for this, including underreporting of Covid deaths in many countries, but the optics were not good. Democratic governments imposed controls that intruded into ordinarily personal space, while authoritarian governments exploited the pandemic to tighten their control. The decline in Covid numbers, if it holds, will not reverse these developments after the November elections. Just as we may talk about societal comorbidity, societies may suffer from long Covid — an impaired functioning of democracy that may persist long after the contagion survives.

☆ UK's Truss to tell G7: stick by Ukraine in face of Russian attacks
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +2 min

Russian President Vladimir Putin has mobilised more troops and issued nuclear threats following a Ukrainian counter-offensive to retake land in the east of the country. Russia invaded Ukraine in February, in what Moscow terms a special operation. Truss will say that Ukrainian military advances had been in part facilitated by military aid and humanitarian assistance by the international community, as well as the impact of sanctions on Russia. She will say sanctions should be maintained and request a full meeting of leaders from the NATO military alliance in the coming days. "The overwhelming international support for Ukraine's struggle stands in stark opposition to the isolation of Russia on the international stage," she will say.

☆ 5 signs the world is headed for a recession
▼ + stars: | 2022-10-02 | by ( Allison Morrow | ) edition.cnn.com time to read: +12 min

New York CNN Business —Around the world, markets are flashing warning signs that the global economy is teetering on a cliff’s edge. There’s now a 98% chance of a global recession, according to research firm Ned Davis, which brings some sobering historical credibility to the table. In an interview, its CEO was asked whether he believes the slowdown was a sign of a looming global recession. The upshotWhile the consensus is that a global recession is likely sometime in 2023, it’s impossible to predict how severe it will be or how long it will last. Not every recession is as painful as the 2007-09 Great Recession, but every recession is, of course, painful.

Share this -Link copiedFloridians are livestreaming Hurricane Ian on TikTok Floridians are giving TikTok users a front-row seat to Hurricane Ian. Storm surge map, they didn’t have a color for 12 to 15 feet," he said about the historic levels of storm surge expected near where Ian is expected to make landfall. Share this -Link copiedA view of Hurricane Ian from the International Space Station A view of Hurricane Ian from the International Space Station, on Monday. Share this -Link copiedSatellite images show Hurricane Ian approaching Florida Hurricane Ian over the Gulf of Mexico early Wednesday. Share this -Link copiedIan expected to strengthen until making landfall, officials say Hurricane Ian is still forecast to strengthen until the hurricane makes landfall in Florida, the National Hurricane Center said.

☆ Explainer: Why is Bank of England acting again? What next in the UK crisis?
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: +5 min

A general view of the Bank of England (BoE) building, the BoE confirmed to raise interest rates to 1.75%, in London, Britain, August 4, 2022. WHY IS THE BANK OF ENGLAND BUYING BONDS AGAIN? By buying bonds, the BoE is seeking to reverse what it sees as "dysfunction" in the bond market. Specifically, the central bank was seeking to address problems facing pension funds, a source familiar with the decision said. By temporarily acting as a buyer for the bonds, the BoE aims to prevent panic selling.

☆ IMF says UK fiscal measures will 'likely increase inequality,' urges rethink
▼ + stars: | 2022-09-27 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby Melville/File PhotoWASHINGTON, Sept 27 (Reuters) - Fiscal measures adopted by Britain will likely increase inequality, a spokesperson for the International Monetary Fund said on Tuesday, urging UK authorities to consider providing more targeted support to affected families and businesses. "Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy," the spokesperson said in the IMF's first public reaction. The IMF understands that Britain's "sizable fiscal package" was intended to help residents deal with higher energy prices and to boost growth via tax cuts and supply measures, but such measures could put fiscal policy at cross purposes with monetary policy, the spokesperson said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Andrea Shalal; Editing by Chizu Nomiyama and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ UK's Truss to review visa schemes to ease labour shortages - FT
▼ + stars: | 2022-09-25 | by ( ) www.reuters.com time to read: 1 min

Register now for FREE unlimited access to Reuters.com RegisterBritain's Prime Minister Liz Truss walks outside Downing Street in London, Britain, September 23, 2022. REUTERS/Clodagh KilcoyneSept 25 (Reuters) - British Prime Minister Liz Truss is set to launch a major review of the country's visa system in a move to tackle acute labour shortages in key industries, the Financial Times reported on Sunday. Register now for FREE unlimited access to Reuters.com RegisterReporting by Anirudh Saligrama in Bengaluru; Editing by David ClarkeOur Standards: The Thomson Reuters Trust Principles.

☆ UK's Kwarteng says he is focused on growth, not market
▼ + stars: | 2022-09-25 | by ( ) www.reuters.com time to read: +1 min

New British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. REUTERS/Toby MelvilleLONDON, Sept 25 (Reuters) - British finance minister Kwasi Kwarteng said on Sunday that he was focused on boosting longer-term growth, not on short-term market moves, when challenged over the sharp fall in sterling and bond prices following his first fiscal statement. "As chancellor of the exchequer, I don't comment on market movements. What I am focused on is growing the economy and making sure that Britain is an attractive place to invest," he told the BBC. Register now for FREE unlimited access to Reuters.com RegisterReporting by Alistair Smout, writing by David MillikenOur Standards: The Thomson Reuters Trust Principles.

☆ Puerto Ricans from town in ‘terrible destruction’ after Hurricane Fiona despair over town's initial exclusion from aid
▼ + stars: | 2022-09-24 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | Daniella Silva | ) www.nbcnews.com time to read: +6 min

The landslides cut off Rivera’s farm, where he still lacks power and water, until heavy machinery arrived to attempt to clear the destruction. Most of the towns excluded were in the southwestern region, where Hurricane Fiona entered and left incalculable devastation. 'Almost all lost'But residents in San Germán were frustrated at not being able to apply immediately for individual assistance. Gone were hundreds of avocados, the coffee, the eggplants, zucchini and other crops Rivera produces and sells to the community, mostly to nearby restaurants. Jorge Luis Rivera, 36, a farmer in San Germán, Puerto Rico, who lost most of his crops to Hurricane Fiona.

☆ Britain cuts stamp duty tax on property purchases
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterNew British Chancellor of the Exchequer Kwasi Kwarteng walks outside Number 10 Downing Street, in London, Britain September 6, 2022. "The steps we've taken today mean 200,000 more people will be taken out of paying stamp duty altogether," he said in a tax-cutting mini-budget designed to spur economic growth. Register now for FREE unlimited access to Reuters.com RegisterStamp duty, payable in England and Northern Ireland, is a graduated tax, which rises in steps to 12% on the portion of the property price above 1.5 million pounds. There was a stamp duty holiday during the COVID-19 pandemic, which initially increased the nil band to 500,000 pounds, stimulating a market which rose to record levels. ($1 = 0.8937 pounds)Register now for FREE unlimited access to Reuters.com RegisterReporting by Paul Sandle, David Milliken and Kylie MacLellan; editing by Alistair SmoutOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Toby MelvilleLONDON, Sept 23 (Reuters) - Britain's new economic agenda of tax cuts and high spending do not represent a gamble because improved economic growth will pay for it, cabinet minister Simon Clarke said ahead of a major fiscal announcement on Friday. Close to 200 billion pounds ($225 billion) of tax cuts, energy subsidies and planning reforms are due to be announced by new finance minister Kwasi Kwarteng as part of Prime Minister Liz Truss's bid to spur growth. "The critical thing is we need to get the economy growing so that, frankly, the economic growth trajectory outstrips that of our debt." Truss has aspirations to double the long-run rate of British annual economic growth to 2.5%. Clarke said the metrics of success would be in improved economic growth.

☆ UK's Kwarteng to scrap top rate of income tax, cut basic rate from April
▼ + stars: | 2022-09-23 | by ( ) www.reuters.com time to read: +1 min

Britain's Chancellor of the Exchequer Kwasi Kwarteng steps outside Downing Street in London, Britain, September 23, 2022. Kwarteng said from April 2023 Britain would have a single higher rate of income tax of 40 per cent, scrapping an additional rate of 45% on income over 150,000 pounds ($168,000). He also said he would cut the basic rate of income tax to 19 pence in April 2023, one year earlier than expected. "That means a tax cut for over 31 million people in just a few months' time," he told parliament. "That means we will have one of the most competitive and pro-growth income tax systems in the world."

☆ Britain pursues 'trickle-down economics' despite scorn from Biden. And the stakes are sky-high
▼ + stars: | 2022-09-23 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +5 min

British Prime Minister Liz Truss and U.S. President Joe Biden formally met for the first time at the United Nations General Assembly in New York City, following clashes in economic policy between the two leaders. Biden, in a tweet Tuesday, said he was "sick and tired of trickle-down economics," adding "it has never worked." Liz Truss U.K. prime ministerCritics, including Britain's opposition Labour party, have argued that such measures disproportionately benefit the wealthy. Questions have also been raised over how the policies will be funded, with tax cuts expected to lead to higher borrowing. Truss has argued that resultant growth will bring in more revenue which will cover those borrowing costs.

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