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☆ UK's Hunt brings forward fiscal announcement to Monday
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: 1 min

British Chancellor of the Exchequer Jeremy Hunt arrives at the BBC, in London, Britain, October 15, 2022. REUTERS/Henry Nicholls/File PhotoLONDON, Oct 17 (Reuters) - New British finance minister Jeremy Hunt will announce tax and spending measures on Monday, two weeks earlier than previously scheduled, the finance ministry said as Hunt tries to turn around a loss of confidence in the government's fiscal plans. "The Chancellor will make a statement later today, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability," the Treasury said. "He will also make a statement in the House of Commons this afternoon." Register now for FREE unlimited access to Reuters.com RegisterReporting by Bengaluru newsroom Writing by William Schomberg; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ Factbox: UK axes economic 'growth plan' to restore market confidence
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +1 min

Here are some of the policy reversals announced by Hunt, which he said would raise 32 billion pounds ($36.19 billion) for the government finances. Hunt announced this will now stay at 20% indefinitely. Register now for FREE unlimited access to Reuters.com RegisterThe finance ministry said this will raise around 6 billion pounds a year. CORPORATION TAXBritain will now press ahead with its original plan to raise its 19% corporation tax rate - the lowest among the G7 club of rich nations - to 25% in 2023. The finance ministry had estimated that keeping the rate at 19% would have cost the taxpayer 67.5 billion pounds over the next five years.

☆ United Kingdom reverses decision on corporate taxation
▼ + stars: | 2022-10-14 | 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 EmailUnited Kingdom reverses decision on corporate taxationCNBC's Joumanna Bercetche joins 'Squawk on the Street' to report on the Prime Minister's renewed commitment to economic stability over market price action, and the reversed decision on corporate taxation, and the appointment of a new British Finance Minister.

☆ 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.

☆ Ex-BoE boss Carney says UK tax cuts under-cutting BoE inflation fight
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +1 min

Mark Carney attends a news conference at the Bank Of England in London, March 11, 2020. Peter Summers/Pool via REUTERSLONDON, Sept 29 (Reuters) - Former Bank of England governor Mark Carney criticized the new British government's plan to cut taxes for under-cutting the attempts of the central bank to curb inflation and sowing chaos in financial markets. "Unfortunately having a partial budget, in these circumstances - tough global economy, tough financial market position, working at cross-purposes with the Bank - has led to quite dramatic moves in financial markets," Carney told the BBC in an interview broadcast on Thursday. The pound sank and British government bond yields soared, forcing the BoE to revive its bond-buying programme in an emergency move on Wednesday to shore up pension funds. read moreRegister now for FREE unlimited access to Reuters.com RegisterWriting by William Schomberg; Editing by Kate HoltonOur Standards: The Thomson Reuters Trust Principles.

A source at the Treasury said Kwarteng had no plans to resign or reverse any policies. DO THINGS DIFFERENTLYBritain's first Black Chancellor, Kwarteng is the son of Ghanaian immigrants. In Kwarteng, Truss picked a key ideological ally with whom she co-wrote a book that spells out a low tax, small state, deregulated vision of Britain. One other aspect that raised investor ire was Kwarteng's decision to release a fiscal plan without the accompanying scrutiny of the independent Office for Budget Responsibility. Kwarteng will set out a medium term fiscal plan alongside OBR forecasts on the scale of government borrowing on Nov. 23.

☆ Paul Krugman, Mohamed El-Erian, and Nouriel Roubini are tearing into UK leaders whose spending plans upended markets. Here's what the 3 top economists have said.
▼ + stars: | 2022-09-29 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Paul Krugman, Mohamed El-Erian, and Nouriel Roubini blasted the new UK government's spending plans. Here's what the three leading economists have said about the fiasco:Paul Krugman"Trussonomics is deeply stupid," Krugman tweeted on Wednesday. Advocates of supply-side economics tout tax cuts, deregulation, and lower borrowing costs as the best tools to drive economic growth. El-Erian slammed the UK's planned tax cuts as "unsettlingly large, relatively regressive and unfunded" in the column published Wednesday. Nouriel Roubini"Truss and her cabinet are clueless," Roubini tweeted on Saturday about the government's fiscal plans.

"There will be impacts, there’s correlations ... some market volatility, and then how it weighs in the global growth picture," said Paul Malloy, head of municipals at Vanguard. The wild swings in the pound have ricocheted across currency markets, where volatility was already climbing. According to the widely watched Deutsche Bank Currency Volatility Index , volatility across currencies on Wednesday hit its highest level since the March 2020 COVID-19- induced market meltdown, jumping more than 20% from levels last week. Closely followed indicators of financial stress remain contained. U.S. stock market volatility as measured by the "fear index," the VIX (.VIX), has also climbed in recent days but remains below its 2022 highs.

☆ 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.

☆ Wall Street eyes lower open on rate hike, recession worries
▼ + stars: | 2022-09-26 | by ( Shreyashi Sanyal | ) www.reuters.com time to read: +3 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 7, 2022. ET, Dow e-minis were down 139 points, or 0.47%, S&P 500 e-minis were down 21 points, or 0.57%, and Nasdaq 100 e-minis were down 51 points, or 0.45%. In premarket trading on Monday, cyclical stocks traded lower on worries that such sharp rate hikes could rattle the economy. The CBOE Volatility index (.VIX), also commonly known as Wall Street's fear gauge, hovered near three month highs. Register now for FREE unlimited access to Reuters.com RegisterReporting by Shreyashi Sanyal and Ankika Biswas in Bengaluru; Editing by Anil D'Silva and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Futures shackled by rate-hike, recession worries
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 7, 2022. REUTERS/Brendan McDermidSummarySummary Companies Futures down: Dow 0.76%, S&P 0.75%, Nasdaq 0.47%Sept 26 (Reuters) - U.S. stock index futures fell on Monday, kicking off another week on softer footing, as investors worried that the Federal Reserve's aggressive push to curb inflation may tip the American economy into recession. ET, Dow e-minis were down 225 points, or 0.76%, S&P 500 e-minis were down 27.75 points, or 0.75%, and Nasdaq 100 e-minis were down 54 points, or 0.47%. "As the SPX tests its June lows, the question becomes is that alone good enough reason to buy?" "Given the acceleration higher in the dollar, global yields, and the breakdowns across global FX, it's hard to not have concerns about longer-term implications."

☆ Wall Street ends lower, Dow confirms bear market
▼ + stars: | 2022-09-26 | by ( Noel Randewich | ) www.reuters.com time to read: +3 min

After two weeks of mostly steady losses on the U.S. stock market, the Dow Jones Industrial Average (.DJI) confirmed it has been in a bear market since early January. With the Fed signaling last Wednesday that high interest rates could last through 2023, the S&P 500 has relinquished the last of its gains made in a summer rally. According to a widely used definition, ending the session down 20% or more from its record high close confirms the Dow has been in a bear market since hitting its January peak. In Monday's session, the Dow Jones Industrial Average (.DJI) fell 1.11% to end at 29,260.81 points, while the S&P 500 (.SPX) lost 1.03% to 3,655.04. The S&P 500 posted no new 52-week highs and 120 new lows; the Nasdaq Composite recorded 16 new highs and 594 new lows.

☆ UK housing index at 11-year low on rate-hike fears
▼ + stars: | 2022-09-26 | by ( Yadarisa Shabong | ) www.reuters.com time to read: +2 min

Register now for FREE unlimited access to Reuters.com RegisterEstate agent signs are seen outside a residential housing in south London, Britain, August 6, 2021. Register now for FREE unlimited access to Reuters.com RegisterThe housebuilders index fell 6% to hit its lowest level since March 2013. "The weak pound is driving expectations for further rate increases, which means lower house prices," Peel Hunt analyst Sam Cullen said. Shares of Taylor Wimpey hit their lowest since 2014, Persimmon since 2016, and Barratt and Berkeley stocks since March 2020. Register now for FREE unlimited access to Reuters.com RegisterReporting by Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's Bostic says events in UK could raise economic stress in Europe, U.S.
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +2 min

"The reaction to the proposed plan is a real concern and a fear that the new actions will add uncertainty to the economy," Bostic said in a webcast interview with the Washington Post. "These are just proposals, and we haven't actually seen what's going to play out," Bostic said. Bostic, the first Fed official to address the events in Britain, gave no indication the Fed might respond in any way. "The more important thing is that we need to get inflation under control," Bostic said. "Until that happens, we're going to see I think a lot of volatility in the marketplace in all directions."

The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. Asked at a Washington Post event whether he felt U.S. investors had taken an overly optimistic view of Fed policy until a recent sharp sell-off begin, Atlanta Fed president Raphael Bostic said that was beside the point. "Until that happens we're going to see I think a lot of volatility in the marketplace in all directions." "At the moment, inflation remains too high," Collins said in her first policy remarks since becoming head of the bank. The Fed maintains a 2% inflation target, as measured by the personal consumptions expenditures price index.

☆ Pound tanking, massive tax cuts and talk of emergency hikes. Here's what's going on in the UK
▼ + stars: | 2022-09-26 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

Jim O'Neill, former Goldman Sachs Asset Management chairman and a former U.K. Treasury minister, said the pound's fall shouldn't be misinterpreted as dollar strength. The announcement Friday featured a volume of tax cuts not seen in Britain since 1972 and an unabashed return to the "trickle-down economics" promoted by the likes of Ronald Reagan and Margaret Thatcher. The radical policy moves set the U.K. at odds with most major global economies against a backdrop of sky-high inflation and a cost-of-living crisis. Ibrahim added that this would imply further suffering for U.K. financial markets due to the "unfavorable policy mix" over the near term. The British lender expects the government to clarify its plans to balance the books through "spending cuts and reform outcomes" ahead of the November budget statement, which Montagne suggested "should help to deflect immediate concerns relating to large unfunded tax cuts."

☆ 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.

☆ Markets Are Right to Be Shocked by Britain’s Version of Reaganomics
▼ + stars: | 2022-09-23 | by ( James Mackintosh | ) www.wsj.com time to read: 1 min

Reaganomics, voodoo economics, trickle-down theory; whatever you call it, 1980s political economy is back in Britain, and the markets hate it. The new British government announced surprise tax cuts on Friday costing about 1.8% of GDP, with no explanation of how to pay for them other than some hand-waving at “growth.”

☆ 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.

☆ New UK finance minister Kwarteng seeks end to 'cycle of stagnation'
▼ + stars: | 2022-09-23 | by ( David Milliken | ) www.reuters.com time to read: +4 min

Paul Johnson, director of the Institute for Fiscal Studies (IFS) think tank, said Truss and Kwarteng's tax cuts could be the largest since 1988, and risked putting Britain's public debt on an unsustainable path. The IFS, together with U.S. bank Citi, estimate household energy subsidies will cost about 120 billion pounds over two years, while six months of business energy subsidies will cost 40 billion pounds. read moreThese are a one-off, and the bigger concern for the IFS is around 30 billion pounds of permanent tax cuts - starting with 14 billion pounds in reduced payroll taxes, confirmed on Thursday, and 15 billion pounds of cuts to corporation tax. For Kwarteng, tax cuts and deregulation are a way to end what he calls "a cycle of stagnation" that led to tax rates being on course for their highest level since the 1940s. "We will liberalise planning rules in specified agreed sites, releasing land and accelerating development," Kwarteng is expected to say.

☆ The UK pound slides to 37-year low against the dollar as the new British government's mini-budget spurs worries about further inflationary pressures
▼ + stars: | 2022-09-23 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The UK pound hits a fresh 37-year low against the US dollar on Friday. Pound sterling fell below $1.09 as the UK's new government outlined tax cuts and other moves to bolster economic growth. The pound fell below $1.10 for the first time in 37 years, tanking as much as 3.2% as the currency pair fell to $1.0899. The inflation rate of 9.9% is running at a near four-decade high. UK government bond prices fell, sending yields higher, and the FTSE 100 benchmark equity index lost about 2% on Friday.

☆ New UK finance minister Kwarteng seeks end to "cycle of stagnation"
▼ + stars: | 2022-09-22 | by ( David Milliken | ) www.reuters.com time to read: +4 min

☆ Factbox: Britain sets out tax cuts and other measures to boost growth
▼ + stars: | 2022-09-22 | 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. REUTERS/Toby Melville//File PhotoLONDON, Sept 22 (Reuters) - Britain's new finance minister Kwasi Kwarteng unveiled a slew of measures on Thursday including the reversal of an increase in payroll tax in an effort to boost economic growth. He is expected to detail more measures in a mini-budget on Friday, including tax cuts, energy subsidies and planning reforms. read moreBelow is a brief overview of the key measures announced so far, and additional steps that could be announced on Friday. Register now for FREE unlimited access to Reuters.com RegisterReporting by Sachin Ravikumar; Editing by Catherine EvansOur Standards: The Thomson Reuters Trust Principles.

REUTERS/Jonathan ErnstWASHINGTON, Sept 20 (Reuters) - U.S. President Joe Biden will try to rally the world against Russia's invasion of Ukraine in a speech to the United Nations General Assembly on Wednesday, saying Moscow's war against its neighbor violates the tenets of the U.N. charter that established the post-World War Two body. Biden departs on Tuesday to join the conclave of world leaders in New York. Register now for FREE unlimited access to Reuters.com RegisterBut he said Biden will urge all nations to see that Russia's war against Ukraine is a violation of the U.N.'s 1945 charter signed by the countries that fought the Axis Powers in World War Two. The Ukraine war was necessary because expansion of the U.S.-led Western military alliance NATO represented an existential threat to Russia, Putin has said. read moreSullivan said every country should make a case against Russia's war.

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