Truss ‘giving with one hand and taking with other’ through stealth taxes, IFS says October 6, 2022 Liz Truss is “giving with one hand and taking with the other” by keeping stealth taxes, a new study out today reveals. Some £2 for every £1 returned to Brits in the prime minister and chancellor Kwasi Kwarteng’s tax cutting mini-budget will be lost to “fiscal drag,” the Institute for Fiscal Studies (IFS) said today. [...]
Pound snaps winning streak against US dollar after Truss conference speech October 5, 2022 The pound slumped against the US dollar today, slicing some of the gains it has made since the currency collapsed after Kwasi Kwarteng’s mini-budget last month. Sterling weakened as much as two per cent against the greenback. It was down against the euro too. The world’s major currencies have tumbled against the dollar this year. [...]
UK’s pension crisis could be repeated abroad, analysts warn October 5, 2022 The crisis that rocked the UK’s pension funds last week could soon be repeated overseas due to proliferation of so-called liability driven investment (LDI), analysts have warned.
London’s IPO slump continues as firms raise £565.5m October 5, 2022 Cash raised through initial public offerings in London plunged by more than seven times in the third quarter of the year as the Capital continues its barren run amid soaring inflation and market volatility.
City sitdown: Private equity should learn to be more emotional, argues City grandee October 5, 2022 Whether you like it or not, private equity is a significant part of the UK economy and accounts for almost 50 percent of all deal value, double the level from just five years ago, according to a recent deal analysis from PwC. Its fingerprint has been all over household names including Asda, the AA, Morrisons and [...]
Services economy stalls as UK ‘drifts’ toward recession October 5, 2022 Britain’s all important services economy is stagnating, driven by consumers cutting spending in response to soaring inflation, a closely watched survey out today shows. S&P Global and the Chartered Institute for Procurement and Supply’s (CIPS) purchasing managers’ index (PMI) fell to 50 last month from 50.9 in August. The reading means the UK services economy [...]
UK exports to Ireland reach record highs despite Brexit trade frictions October 5, 2022 UK exports of goods to Ireland have now posted consecutive monthly records in June and July, according to fresh data shared with City PM this morning. Analysis of the latest government trade data shows £2,861m and £2,693m worth of goods travelled into Ireland through the two months respectively, as trade with the UK’s closest neighbour [...]
Kwarteng trashes market bets on earlier OBR report and fiscal plan October 4, 2022 The pound today climbed to its highest level against the US dollar in two weeks despite chancellor Kwasi Kwarteng trashing market expectations of a sooner-than-expected fiscal plan. Sterling surged 0.78 per cent against the greenback to buy $1.141. It has now regained all its losses since Kwarteng’s mini-budget rocked the currency last month. UK borrowing [...]
Truss and Kwarteng mini-budget to ‘deepen’ UK recession October 4, 2022 Liz Truss and Kwasi Kwarteng’s decision to slash taxes and ramp up borrowing without costing their plans will make the looming UK recession worse, City economists predicted today. Soaring mortgage rates driven by lenders passing on higher market yields pushed up by a lack of confidence in prime minister Liz Truss and chancellor Kwasi Kwarteng’s [...]
UK courting Norway and Qatar for long-term gas deals as Truss makes energy security a priority October 4, 2022 Locking in long-term gas deals with Norway, Qatar and other countries around the world has become a priority for the new Liz Truss government, as the prime minister said her focus has turned to keeping lights on this winter. Truss said ministers are “looking” at multi-year deals to cut reliance on imports from authoritarian regimes. [...]
