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☆ U.K. Prime Minister Defends Tax Cuts as Market Turmoil Continues
▼ + stars: | 2022-09-29 | by ( Max Colchester | Paul Hannon | ) www.wsj.com time to read: 1 min

LONDON—Prime Minister Liz Truss looked to reassure the British public and rattled investors that her plan to cut taxes wouldn’t lead to prolonged financial instability, arguing in a series of interviews on Thursday that the country had been buffeted by global shocks rather than her government’s reforms and that her policies would result in faster growth. “We had to take decisive action,” Ms. Truss told the British Broadcasting Corp. in her first public comments since the tax plan was presented last Friday. The new prime minister said she wouldn’t backtrack on plans to carry out big tax cuts and spending increases, a package funded by borrowing which raised alarm among investors.

The U.K. continued to try to stave off a financial and economic crisis on Wednesday as the country’s central bank carried out emergency buying of government bonds to stabilize a spiraling debt market, adding pressure on the government of new Prime Minister Liz Truss . The central bank’s surprise move to spend 1 billion pounds buying U.K. government debt spurred a rally in the bond market, and helped the embattled pound gain slightly against the U.S. dollar, though it was still down against the euro. But the intervention—to stave off an imminent pension crisis—underscored the risks that continuing market turbulence poses to the U.K. financial system and economy.

☆ Bank of England to Buy Bonds in Bid to Stop Spread of Crisis
▼ + stars: | 2022-09-28 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

LONDON—The Bank of England on Wednesday said it would buy U.K. government bonds with long maturities “on whatever scale is necessary” in an effort to restore order to the market after a large set of government tax cuts sent borrowing costs soaring. The move caused an immediate reaction, with bond prices both in the U.K. and other markets rallying, sending yields lower. The U.K.’s benchmark 10-year government bond yields fell to 4.004% after the announcement, from 4.552% before, an outsize move for what is normally a staid corner of the market. The pound rallied at first against the dollar but then slid further to trade down around 0.6% to $1.066.

☆ U.K. Seeks to Calm Investors Over Clash Between Inflation Fight and Truss Tax Cuts
▼ + stars: | 2022-09-27 | by ( Paul Hannon | Max Colchester | ) www.wsj.com time to read: 1 min

The U.K. government, after a punishing week for the pound and bond market in London, tried Tuesday to reassure investors that it is working to better coordinate with the Bank of England as Prime Minister Liz Truss ’s tax cuts and energy subsidies complicate efforts to control spiraling inflation. U.K. Chancellor of the Exchequer Kwasi Kwarteng said he was meeting Bank of England Governor Andrew Bailey daily.

☆ Bank of England Inflation Fight and Truss Tax Cuts Are at Odds, Worrying Investors
▼ + stars: | 2022-09-27 | by ( Paul Hannon | Max Colchester | ) www.wsj.com time to read: 1 min

This year, Andrew Bailey , the head of the Bank of England, has had one of the toughest jobs in central banking. The energy price shock from the Ukraine war and a U.S.-style labor shortage has sent U.K. inflation to the highest rate of large rich countries. Now, his job of fighting inflation has become even harder after the new government of Prime Minister Liz Truss unveiled the biggest tax cuts in a generation, as well as a bailout for consumers and businesses designed to protect them from surging energy costs, according to former central bank officials, analysts and investors.

☆ Russia’s War in Ukraine to Cost Global Economy $2.8 Trillion, OECD Says
▼ + stars: | 2022-09-26 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

Russia’s invasion of Ukraine will cost the global economy $2.8 trillion in lost output by the end of next year—and even more if a severe winter leads to energy rationing in Europe—the Organization for Economic Cooperation and Development said Monday. The estimate by the Paris-based club of advanced economies lays bare the magnitude of the economic fallout from Moscow’s invasion of its neighbor seven months ago, the worst military conflict on the continent since World War II, which is Russia’s attempt to redraw the map of Europe by force.

☆ Central Banks May Stoke Risks by Raising Interest Rates Together
▼ + stars: | 2022-09-25 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

Central banks around the world are raising their key interest rates in the most widespread tightening of monetary policy on record. Some economists fear they may go too far if they don’t take into account their collective impact on global demand. According to the World Bank, the number of rate increases announced by central banks around the world was the highest in July since records began in the early 1970s. On Wednesday, the Federal Reserve delivered its third 0.75 percentage-point increase in as many meetings. This past week its counterparts in Indonesia, Norway, the Philippines, South Africa, Sweden, Switzerland, Taiwan and the U.K. also upped rates.

☆ Horses and the 'Sport of Kings' were Queen Elizabeth's passion
▼ + stars: | 2022-09-16 | by ( Alan Baldwin | ) www.reuters.com time to read: +5 min

The late monarch's horses won more than 1,800 races and her annual presence at Royal Ascot and the Epsom Derby reflected a deep personal interest as much as carrying out royal duty. "I'm sure if the queen had not been bred into being a monarch she would have found a vocation with horses. Nicky Henderson, another royal trainer, also told the Racing Post how the queen had watched one of her horses win a race on television. The queen's horses won all the British classics with the exception of the Derby, the most prestigious of all. Queen Elizabeth attended every edition of the Royal Windsor Horse Show since its inception 79 years ago, including in May.

EuropeIAEA Director General Rafael Grossi said he remained gravely concerned about the situation at the nuclear plant, which sits close to the front line of the Ukraine war, urging the establishment of a safety zone around the site as soon as possible.

CommoditiesIndia banned exports of broken rice and levied a tax on other key varieties in a move that would add to global inflationary pressure and exacerbate food supply pains caused by the war in Ukraine.

☆ Global Economic Growth Is Weighed Down by Inflation, Rising Interest Rates
▼ + stars: | 2022-07-21 | by ( Paul Hannon | Austen Hufford | ) www.wsj.com time to read: 1 min

Fresh economic data pointed to a slowdown in U.S. and global growth, as higher prices and interest rates weigh on consumer demand, Europe enters a critical phase of its economic conflict with Russia, and China faces headwinds. U.S. and European business activity fell in October, according to new surveys released Monday. A sharp slowdown in services activity, the biggest driver of the world’s largest economy, led the U.S. decline.

☆ Europe’s Economy Contracts as Tough Winter Looms
▼ + stars: | 2022-07-21 | by ( Paul Hannon | ) www.wsj.com time to read: 1 min

Business activity in Europe fell for a fourth straight month in October, according to new surveys, pointing to a potential slowdown in global economic growth as higher prices and interest rates weaken consumer demand. The surveys come as Europe enters a crucial phase of its economic conflict with Russia, which has been throttling energy supplies in response to sanctions for its war in Ukraine.

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