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☆ Morning Bid: Fearless?
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +4 min

As bond markets furiously flag a looming recession, stock markets suddenly seem fearless. Wall St's so-called 'fear index' of implied equity volatility (.VIX) fell on Tuesday to its lowest level since August. Put against the deepening inversion of the U.S. 2-10 year Treasury yield curve to its most negative in 22 years, typically a harbinger of recession ahead, the apparent stock market calm is puzzling. Some analysts reckon stock market positioning is already so low and portfolios so underweight equity that demand for downside protection in the options market has waned too. Any hoping for an end to the jump in interest rate rate rises around the world were also disappointed.

☆ Brits face sharpest fall in living standards on record as government tightens its belt
▼ + stars: | 2022-11-18 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

LONDON — As the U.K. government announces a £55 billion ($65.5 billion) program of tax hikes and spending cuts, the country faces its sharpest fall in living standards since records began. The cumulative decline of 7.1% between 2021-22 and 2023-24 would reduce RHDI to its lowest point since 2013-14, erasing eight years of growth. Average household income per head is only expected to recover its 2018-19 level in 2027-28. Unemployment is also expected to rise by 505,000 from 3.5% to peak at 4.9% in the third quarter of 2024. The OBR projected that real wages will fall by 1.8% in 2022 and 2.2% in 2023 before recovering to grow by an average of 1.3% per year thereafter.

☆ The UK has laid out a $65 billion package of tax rises and spending cuts to restore faith after political upheaval and a market storm
▼ + stars: | 2022-11-17 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The UK's finance minister Jeremy Hunt has laid out a £55 billion package of tax rises and spending cuts. The government wants to restore credibility after a prior tax plan drove the pound to an all-time low. The fiscal plan will be divided roughly equally between tax rises and spending cuts, Hunt said. That goes contrary to the tax plan laid out by former finance minister Kwasi Kwarteng, which called for huge tax cuts. Read more: UK inflation tops 11% to hit its highest level since 1981 as food and energy prices soar

☆ UK finance minister announces tax hikes and spending cuts, says country is in recession
▼ + stars: | 2022-11-17 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +2 min

U.K. Finance Minister Jeremy Hunt is set to announce a sweeping package of tax hikes and spending cuts in his Autumn Statement as he seeks to plug a gaping hole in the country's public finances. Finance Minister Jeremy Hunt, in his hotly anticipated inaugural Autumn Statement, outlined around £30 billion in spending cuts and £25 billion in tax hikes. "Unfunded tax cuts are as risky as unfunded spending," Hunt told the House of Commons. "We must continue a relentless fight to bring (inflation) down, including a rock-solid commitment to rebuild our public finances," Hunt said. The finance minister also confirmed that the energy industry will be hit with an expanded windfall tax of 35% up from 25%.

OTTAWA, Nov 16 (Reuters) - Canada's Prime Minister Justin Trudeau is coming under pressure from populist conservative rivals as the country veers toward a possible recession, with provinces vowing to oppose some of his Liberal government's key policies. New federal Conservative Party leader Pierre Poilievre is leading the charge, blaming Trudeau for skyrocketing inflation and laying responsibility for a housing shortage on "gatekeepers" in Ottawa. Both Alberta and Saskatchewan have lost court bids to overturn federal carbon pricing already. Alberta, Saskatchewan and other conservative-led provinces also oppose an assault-rifle buyback the Trudeau government is promising for next year. ECONOMIC HEADWINDSQuebec is a prime example of historical tension between Ottawa and the provinces.

☆ In Burnley, Britain's cost of living crisis hits home
▼ + stars: | 2022-11-15 | by ( Natalie Thomas | ) www.reuters.com time to read: +6 min

[1/6] Keelie Topping shops in the parish of the Church of St Matthew the Apostle in Burnley, England, Britain November 10, 2022. While millions in Britain face a difficult winter, the Centre for Cities think tank says the nearly 95,000 residents of Burnley are most exposed to the shockwaves ripping through the economy. Consumers in Burnley saw prices rise 11.7% in the year to September, the think tank estimates, compared with 10.1% nationally, and 9.1% in London. Britain's exit from the European Union has so far failed to yield economic dividends for places like Burnley. Adrian Pabst, at the National Institute of Economic and Social Research think tank, said the cost of supporting the poorest households did not have to be big.

OTTAWA, Nov 3 (Reuters) - Canada's government will outline its new fiscal forecasts and update its spending plans on Thursday against the backdrop of a stalling economy brought on by a steep rise in interest rates. The financial market turmoil caused by Britain's now-abandoned tax-cut plan, still-high inflation and rising interest rates are reasons for Canada to be very cautious about adding stimulus, analysts said last month. The Liberal government's updated fiscal plans come as the economy is sinking into three quarters of near-zero growth, according to Bank of Canada forecasts, and as the central bank continues its historic tightening campaign. Inflation in Canada has slowed to 6.9% in September from a peak of 8.1% earlier in the year, but core measures remain sticky. "Policy risk is particularly elevated with still-high inflation and an uncertain interest rate path that has markets on edge," said Rebekah Young, an economist at Scotiabank.

Inflation has edged down over the last three months to 6.9% in September from 8.1% in June. The fiscal update showed "significantly weaker growth" next year that previous forecast, but the baseline numbers did not foresee a recession. It also cut its deficit forecast for this fiscal year by almost a third to C$36.4 billion from the C$52.8 billion deficit forecast in April. The update also included a tax on corporate stock buybacks similar to a measure introduced by United States. The fiscal update document forecast Canada's debt-to-GDP ratio would be 42.3% in 2022/23, versus 45.1% forecast in April, falling to 37.3% in 2027/28.

☆ Canada to propose taxing corporate stock buybacks - source
▼ + stars: | 2022-11-03 | by ( Steve Scherer | ) www.reuters.com time to read: +1 min

OTTAWA, Nov 2 (Reuters) - Canada will on Thursday propose a tax on corporate stock buybacks, a senior government source said, similar to a measure introduced by United States this year in a law aimed at boosting investment in green transition technologies. The tax will produce "significant income", the source said, without providing any further details. The source was not authorized to speak on the record. The U.S. Inflation Reduction Act passed in August imposed a 1% tax on stock buybacks. Reporting by Steve Scherer; Editing by Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ Canada to set up tax credits for clean tech, launch growth fund
▼ + stars: | 2022-11-03 | by ( Rachel Parsons | ) www.reuters.com time to read: +2 min

OTTAWA, Nov 3 (Reuters) - Canada will introduce refundable tax credits for clean technologies worth up to 30% of investment costs, in a bid to close competitive gaps with the United States in scaling up green technologies, the government said on Thursday. The clean-tech tax credits will be offered for investors in net-zero technologies, battery storage and clean hydrogen, according to the so-called fall economic statement (FES) presented to the House of Commons by Finance Minister Chrystia Freeland. The tax will generate an estimated C$2.1 billion over five years and will come into force on Jan 1, 2024. "In terms of trying to foster business investments, I don't think it's well targeted," said Robert Asselin, senior vice president of policy at the Business Council of Canada. In next year's budget, Canada will introduce new measures to increase advanced manufacturing competitivness, the document said.

☆ U.K.'s Sunak face Parliament for the first time as prime minister
▼ + stars: | 2022-10-26 | by ( Associated Press | ) www.nbcnews.com time to read: +3 min

Rishi Sunak faced the opposition in Parliament for the first time as Britain’s prime minister Wednesday, seeking to provide assurances that his new government would offer economic stability and continuity after his predecessor’s tax plans triggered market tumult. He also quietly reinstituted a moratorium on fracking that was part of the Conservative Party’s 2019 election platform. “We will have to take difficult decisions to restore economic stability and confidence,” Sunak told the House of Commons. Sunak is seen by Conservatives as a safe pair of hands they hope can stabilize an economy sliding toward recession — and stem the party’s plunging popularity. Sunak brought in people from different wings of the Conservative Party for his Cabinet.

LONDON, Oct 26 (Reuters) - Britain's new Prime Minister Rishi Sunak earned cheers from his lawmakers and plaudits from political commentators on Wednesday as he locked horns with the opposition Labour Party in parliament for the first time since becoming leader. "My record is, when times are difficult in this country I will always protect the most vulnerable," Sunak said to vociferous support from the Conservative benches in the House of Commons. Britain's Prime Minister Rishi Sunak walks outside Number 10 Downing Street, in London, Britain, October 26, 2022. Sunak's Conservatives saw their standing in opinion polls sink to multi-year lows as Truss stumbled through her six weeks as prime minister. "The only time he ran in a competitive election, he got trounced by the former prime minister who herself got beaten by a lettuce," Starmer said.

☆ What do Indians think about Rishi Sunak’s rise? Like UK-India relations, it’s complicated
▼ + stars: | 2022-10-26 | by ( Rhea Mogul | ) edition.cnn.com time to read: +13 min

Now, an Indian-origin man has become the Prime Minister of England,” a Zee News anchor said. Leon Neal/Getty Images Sunak and Boris Johnson watch as a sheep is sheared during a visit to a farm in North Yorkshire, England, in July 2019. Danny Lawson/PA Images/Getty Images Sunak speaks during a general election debate in Cardiff, Wales, in November 2019. Hollie Adams/Bloomberg/Getty Images Sunak and Murty are seen with their daughters, Krishna and Anoushka, while campaigning in Grantham, England, in July 2022. Indian Prime Minister Narendra Modi suggested as much in a tweet welcoming Sunak’s appointment.

☆ Canadian lawmakers reject proposal to cut ties with British monarchy
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: 1 min

OTTAWA, Oct 26 (Reuters) - Canadian lawmakers on Wednesday rejected a proposal by Canada's Quebec separatist party asking the federal government to sever ties with the British monarchy. The motion by Bloc Quebecois was defeated with 44 votes in favour to 266 against in the House of Commons. read moreBritain colonized Canada beginning in the late 1500s, and the country remained part of the British empire until 1982. Now it is a member of the Commonwealth of former empire countries that count the British monarch as head of state. Reporting by Ismail Shakil in Ottawa, editing by Deepa BabingtonOur Standards: The Thomson Reuters Trust Principles.

☆ Rishi Sunak Extends Lead in Race for Next U.K. Prime Minister
▼ + stars: | 2022-10-24 | by ( Max Colchester | ) www.wsj.com time to read: 1 min

LONDON—Former U.K. Chancellor of the Exchequer, Rishi Sunak , extended his lead over another party rival in the race to become Britain’s next prime minister Monday as he gained more endorsements from allies of former prime minister Boris Johnson. The only other remaining candidate in the contest to succeed outgoing prime minister Liz Truss is Penny Mordaunt , the leader of the House of Commons. But she appeared far behind Mr. Sunak in gathering the needed support from Conservative Party lawmakers before the deadline later on Monday.

Like Truss, Sunak promised a tough approach to illegal immigration and vowed to expand the government’s controversial Rwanda immigration policy. At the time Johnson was running to lead Britain's Conservative Party and Sunak was a member of Parliament. Danny Lawson/PA Images/Getty Images Sunak speaks during a general election debate in Cardiff, Wales, in November 2019. Danny Lawson/PA/Getty Images Sunak delivers a speech during the annual Conservative Party Conference in Manchester in October 2021. Hollie Adams/Bloomberg/Getty Images Sunak and Murty are seen with their daughters, Krishna and Anoushka, while campaigning in Grantham, England, in July 2022.

Sunak, the 42-year-old former finance minister, could be named leader as soon as Monday to replace Liz Truss, becoming Britain's third prime minister in less than two months. "The United Kingdom is a great country but we face a profound economic crisis," Sunak said in a statement declaring his candidacy on Sunday. Should she fail to hit the threshold, Sunak would become prime minister. "He's not taking anything for granted at all," interior minister Grant Shapps, a supporter of Sunak, told BBC television. If chosen, the former Goldman Sachs analyst would be the United Kingdom's first prime minister of Indian origin.

☆ Rishi Sunak will be Britain’s next prime minister after seeing off rivals in race to replace Truss
▼ + stars: | 2022-10-24 | by ( Ivana Kottasová | ) edition.cnn.com time to read: +6 min

London CNN —Former finance minister Rishi Sunak will be the United Kingdom’s next prime minister after seeing off his lone remaining rival in the fast-tracked race to become Conservative party leader on Monday. Sunak is set to replace Liz Truss, who will become the shortest-serving prime minister in UK history. Sunak will become prime minister once he is officially appointed by King Charles III and will be the first prime minister appointed by the new King following the death of Queen Elizabeth II in September. His campaign got a big boost when his former boss and rival, former Prime Minister Boris Johnson, withdrew from the race on Sunday night. He criticized Truss’ economic plan which ultimately sparked panic in the financial markets and led to her demise.

☆ Boris Johnson battling to win support for fresh prime minister bid
▼ + stars: | 2022-10-23 | by ( ) www.cnbc.com time to read: +1 min

Former Prime Minister Boris Johnson arrives at Gatwick Airport in London, after returning from the Caribbean on Oct. 22, 2022. Johnson is trying to garner enough support to launch a bid to replace Liz Truss who resigned as prime minister. Boris Johnson was fighting to get enough support to become Britain's next prime minister on Sunday after prominent figures on the right-wing of the Conservative Party coalesced around the man once accused of betraying him, Rishi Sunak. Leading figures who previously backed Johnson, came out in support for former finance minister Sunak ahead of a first vote by Conservative lawmakers on Monday. "I'm afraid the trouble is because of the privileges vote, Boris would be a guaranteed disaster."

☆ Johnson battling to win support for fresh PM bid
▼ + stars: | 2022-10-23 | by ( ) www.reuters.com time to read: +2 min

Leading figures who previously backed Johnson, came out in support for former finance minister Sunak ahead of a first vote by Conservative lawmakers on Monday. Johnson was forced out of office in July when Sunak quit, triggering a wider rebellion that prompted Johnson's ministers to resign en masse. Baker said the country now needed a period of stability after Truss sparked turmoil in finance markets, and that meant not voting for Johnson again. "What we can't do is have him in as prime minister in circumstances where he's bound to implode, taking down the whole government with him," he said. Mordaunt-backer Damian Green dismissed reports that she was struggling to meet the threshold, telling Sky News that she would not pull out.

☆ Boris Johnson flies back to Britain to attempt rapid comeback
▼ + stars: | 2022-10-22 | by ( Andrew Macaskill | ) www.reuters.com time to read: +4 min

Johnson was booed by some passengers on the plane to Britain, according to a Sky News journalist on the flight. For some Conservative lawmakers, Johnson is a vote winner, able to appeal across the country not only with his celebrity but also with his brand of energetic optimism. "DEATH SPIRAL"The former Conservative leader William Hague said on Friday Johnson's return was possibly the worst idea he had heard in almost half a century as a party member. Johnson is currently under investigation by parliament's Privileges Committee to establish whether he lied to the House of Commons over lockdown-breaking parties. The contest to become Britain's fourth prime minister in four years has been accelerated to take only a week.

☆ Could Boris Johnson be next U.K. prime minister? Liz Truss replacement race is on
▼ + stars: | 2022-10-21 | by ( Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Patrick-Smith-Circle-Byline-Template.Jpg | Patrick Smith | ) www.nbcnews.com time to read: +9 min

Some Conservative lawmakers have suggested they may even quit the party if Johnson wins. “His manipulation of the Conservative Party, his dishonesty and boosterism were all designed to cloak the absence of any realistic policies. Sunak commanded the support of more Conservative lawmakers than Truss, but lost out in the final members’ vote. But he is viewed as responsible for Johnson’s downfall by some allies of the former prime minister, who are unlikely to cheer a Sunak premiership. Starmer, the Labour Party leader, would be the clear favorite to be prime minister if an election were held any time soon.

☆ Fact Check-Image of Jacob Rees-Mogg at centre of scuffle is from 2018, not alleged House of Commons incident in October 2022
▼ + stars: | 2022-10-21 | by ( Reuters Fact Check | ) www.reuters.com time to read: +1 min

Social media users are sharing a photo of UK Parliamentarian Jacob Rees-Mogg at the centre of a fracas and claiming it shows an alleged scuffle inside the House of Commons on Oct. 19, 2022. However, the picture was taken at an event at the University of the West of England (UWE) on Feb. 2, 2018. One Facebook page (here), uploaded an article (here) which uses a thumbnail image of the British MP in the centre of a group of tussling men. Similar social media posts can be seen on Facebook (here and here) and Twitter (here and here), where the tweets have amassed more than 1,500 shares combined. This article was produced by the Reuters Fact Check team.

☆ Comeback king: Boris Johnson considering a run for UK prime minister
▼ + stars: | 2022-10-21 | by ( Elizabeth Piper | ) www.reuters.com time to read: +5 min

British Prime Minister Boris Johnson speaks during his visit to EDF's Sizewell B Nuclear power station, in Sizewell, Britain September 1, 2022. Chris Radburn/Pool via REUTERSSummary Johnson taking soundings from lawmakersHad said he wanted a quieter lifeUnder investigation for lying to parliamentLONDON, Oct 21 (Reuters) - Out of power for a matter of months, comeback king Boris Johnson is once again being touted as the new leader of the governing Conservative Party and Britain's prime minister. For some Conservative lawmakers, Johnson is a vote winner, able to appeal across the country not only with his celebrity but also with his brand of energetic optimism. When Johnson left Downing Street, his aides said he was going to embrace a quieter life, no longer being "public property" and able to make more money by going on the speaker circuit. After his successor as prime minister, Liz Truss, quit on Thursday after just six weeks in power, the Ukrainian government Twitter account even published, and then deleted, a meme saying "Better call Boris".

☆ British minister Penny Mordaunt announces bid to be next UK PM
▼ + stars: | 2022-10-21 | by ( ) www.reuters.com time to read: +2 min

LONDON, Oct 21 (Reuters) - British minister Penny Mordaunt on Friday launched her bid to replace Liz Truss as prime minister, becoming the first Conservative lawmaker to announce they are running. That race saw Truss defeat former finance minister Rishi Sunak. "I’ve been encouraged by support from colleagues who want a fresh start, a united party and leadership in the national interest." Bookmakers place Mordaunt third, behind Sunak and Johnson, who are also expected to enter the race to succeed Truss. Largely unknown outside Westminster prior to taking an early opinion poll lead among Conservative Party members earlier this year, some of the public may have first seen Mordaunt on the reality TV show Splash!

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