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☆ Bank of England set for biggest rate hike in 33 years, but economists expect dovish tilt
▼ + stars: | 2022-11-02 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

New Prime Minister Rishi Sunak has scrapped the controversial tax cuts at the heart of predecessor Liz Truss' fiscal policy agenda, meaning fiscal and monetary policy are no longer pulling in opposite directions. Deutsche Bank also expects a split vote on Thursday in favor of a 75-basis-point hike, taking the key interest rate to 3%. Deutsche Bank now expects the Bank Rate to reach 4.5% by May next year, down from its previous projection of 4.75%, on account of retreating fiscal stimulus and a push toward fiscal consolidation. watch nowBank of England Deputy Governor for Monetary Policy Ben Broadbent said in a recent speech that GDP would take a "pretty material" hit from such aggressive policy tightening. The Bank's August growth forecasts, which already pointed to a five-quarter recession, were based on a much lower Bank Rate of around 3%.

☆ UK still faces 40 billion pound budget hole - Resolution Foundation
▼ + stars: | 2022-11-01 | by ( David Milliken | ) www.reuters.com time to read: +3 min

LONDON, Nov 1 (Reuters) - Britain still faces a 40 billion pound ($46 billion) budget hole that will need to be filled by tax rises as well as spending cuts, despite recent U-turns on measures proposed during Liz Truss's short-lived premiership, a think tank said on Tuesday. Previous finance ministers had also left a minimum of 12 billion pounds of leeway to achieve their budget goals, the think tank added. The government is reviewing a previous promise to raise pensions and welfare benefits in line with inflation, which will cost around 9 billion pounds. Around 17 billion pounds of Truss's tax cuts remain in place, largely the reversal of a 15 billion pound rise in payroll taxes introduced by Sunak when he was finance minister. "This reality means that the Autumn Statement is likely to involve tax rises, not just spending cuts."

☆ Sterling dips as market trims BoE rate hike bets, yen scrabbles off 32-yr low
▼ + stars: | 2022-10-18 | by ( Joice Alves | ) www.reuters.com time to read: +4 min

The battered Japanese yen traded near a 32-year trough to the dollar at 149 yen, putting the major psychological barrier of 150 in focus. ING expects now a 75 basis-point rate hike in November rather a full-point move expected before the fiscal policy U-turn, Smith added. The euro was volatile weakened against the dollar following German investor sentiment data, which albeit less pessimistic than expected, still painted a bleak picture of Europe's biggest economy. The dollar index which measures its performance against six major currencies, including sterling, the euro and the yen - was last down 0.1% at 112.00. Britain's policy U-turn saw the risk-sensitive New Zealand dollar surge more than 1%, already lifted by hotter-than-expected consumer inflation data, boosting bets for further rate hikes.

LONDON, Sept 29 (Reuters) - Capricorn Energy (CNE.L) plans to merge with Israel's NewMed (NWMDp.TA) in an all-share deal after paying a $620 million special dividend to its shareholders, ditching a previous scheme to merge with Tullow Oil (TLW.L). The deal would value Capricorn shares at 271 pence, a 13 % premium to its last closing price. The deal with West Africa-focused Tullow, which declined to comment on Thursday's news, had valued Capricorn at around 210 pence per share. The merger would see Capricorn issue new shares to NewMed investors based on an exchange ratio of around 2.34 per NewMed share, which will see Capricorn shareholders hold just over 10% of the new company. Capricorn's Chief Financial Officer James Smith will stay on with NewMed Energy, which is set to pay out at least 30% of its cah flow in dividends.

☆ Pension fund panic led to Bank of England's emergency intervention: Here's what you need to know
▼ + stars: | 2022-09-29 | by ( Elliot Smith | ) www.cnbc.com time to read: +7 min

A central narrative emerging from the U.K.'s precarious economic position is the apparent tension between a government loosening fiscal policy while the central bank tightens to try to contain sky-high inflation. Monetary policy is trying to mop-up after the milk was spilt," Turner said. Anything less, and there will likely be more turbulence for the gilt market, and the pound, in the coming weeks," he added. Following the Bank's bond market intervention, ING's economists expect a little more sterling stability, but noted that market conditions remain "febrile." She suggested the market would have benefitted from the government "blinking first" in the face of the market backlash to its policy agenda, rather than the central bank.

☆ Larry Summers blasts UK tax cuts as 'utterly irresponsible' and warns of possible contagion
▼ + stars: | 2022-09-27 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

The sudden sell-off in the pound and U.K. bond markets led economists to anticipate more aggressive interest rate hikes from the Bank of England . I was surprised when the new chancellor spoke over the weekend of the need for even more tax cuts," Summers said on Twitter. U.K. inflation unexpectedly fell to 9.9% in August, and analysts recalibrated their eye-watering expectations after the government stepped in to cap annual household energy bills. 'Emerging market currency crisis'Sterling has fallen by roughly 7-8% on a trade-weighted basis in less than two months, and strategists at Dutch bank ING noted Tuesday that traded volatility levels for the pound are "those you would expect during an emerging market currency crisis." The likening of the U.K. to an emerging market economy has become more prevalent among market commentators in recent days.

☆ Canada mass stabbing suspect not beaten to death in police custody, coroner says
▼ + stars: | 2022-09-21 | by ( Ismail Shakil | ) www.reuters.com time to read: +2 min

FILE PHOTO - Damien Sanderson and Myles Sanderson, who are named by the Royal Canadian Mounted Police (RCMP) as suspects in stabbings in Canada's Saskatchewan province, are pictured in this undated handout image released by the RCMP September 4, 2022. RCMP/Handout via REUTERSOTTAWA, Sept 21 (Reuters) - Preliminary tests found no signs of external trauma that could have caused the death of a mass stabbing suspect who died in police custody after one of Canada's deadliest mass violence incidents earlier in September, a coroner said on Wednesday. read moreRegister now for FREE unlimited access to Reuters.com Register"The preliminary results of the autopsy for Myles Sanderson has found no blunt force trauma causing his death," Saskatchewan's chief coroner Clive Weighill told reporters. Weighill said officials were still waiting for other test results, including toxicology and neuro pathology reports, before determining the cause of Myles' death. "This is very, very preliminary, but that's the best I can give you right now," Weighill said.

☆ Bank of England faces pivotal policy decision with pound at multi-decade lows
▼ + stars: | 2022-09-21 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

Bank of England Governor Andrew Bailey has reiterated his commitment to reining in inflation, but the Bank faces a difficult balancing act as growth slows and the labor market tightens. On Tuesday, Sweden's Riksbank hiked interest rates by 100 basis points, warning that inflation was "undermining households' purchasing power." The U.S. Federal Reserve is expected on Wednesday to lift its benchmark borrowing rate by 75 basis points, the third consecutive hike of that magnitude. Meanwhile the European Central Bank earlier this month announced a 75 basis point increase to its benchmark deposit rate. It would really be quite a tone deaf performance from the Bank of England if they don't go for 75 basis points at this week's meeting."

☆ Indigenous Community Reels After Stabbing Attacks in Canada
▼ + stars: | 2022-09-18 | by ( Vipal Monga | Photographs Kitra Cahana For The Wall Street Journal | ) www.wsj.com time to read: 1 min

JAMES SMITH CREE NATION, Saskatchewan—On a recent day in this small community on the Canadian prairie, people gathered in the school gym listening to traditional indigenous drums and mournful music at back-to-back funerals. Outside, people huddled in groups, crying and smoking. It has been two weeks since this territory of 2,000 people became the scene of one of the worst mass killings in Canadian history. Two brothers allegedly went on a rampage that left 10 dead and 18 injured. Locals said there are still many unanswered questions about what triggered the attacks, how they unfolded and why law enforcement failed to track down one of the brothers, a violent offender, after he disappeared in May.

☆ Transforming Business poll shows that talent is a driver, and a product, of innovation
▼ + stars: | 2021-04-20 | by ( Julia Hood | ) www.businessinsider.com time to read: +6 min

Talent recruitment was cited as a top priority for innovation investment among companies polled for the Transforming Business series. Business decision-makers polled by Insider report that talent is a top investment priority, and also that a major benefit of digital transformation is recruiting top talent. Culture of innovationTo drive transformation, business leaders have to source and keep the right talent, and to create a culture of innovation. "Whether businesses recover will be dependent on their talent and that talent's ability to navigate uncertainty and drive innovation needed to rise beyond incremental challenges." This SurveyMonkey Audience poll targeted individuals who work in a management capacity at their company according to the Audience panel.

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