Liz Truss energy price freeze would peg inflation, BoE chief economist says September 7, 2022 LIZ Truss’s plan to freeze energy prices would prevent inflation from scaling to its highest level since 1980, but interest rates may have to stay higher for longer, the Bank of England’s top wonk said today. Huw Pill, the monetary authority’s chief economist, told the commons treasury committee that the new prime minister’s cost of [...]
Pound sinks to lowest level against US dollar since 1985 September 7, 2022 The pound today sunk to its lowest level against the US dollar since 1985, driven by investors sweating over the health of the UK economy and a borrowing splurge. Sterling fell to $1.1406 briefly today, marking another dismal milestone for the currency. The last time the pound fell that low was when Margaret Thatcher was [...]
Truss confirms opposition to energy windfall tax to fund £100bn+ package September 7, 2022 Liz Truss has confirmed she will not slap a new tax on North Sea oil and gas producers to pay for her £100bn+ package of support to households and businesses. Labour leader Sir Keir Starmer said during Prime Minister’s Questions (PMQs) that Truss’ plan to increase borrowing to fund the emergency package is akin to [...]
UK’s cost-of-living crisis is driving uptick in scams, FCA exec warns September 7, 2022 A top executive at the UK’s financial watchdog has said the country’s cost-of-living crisis risks driving an uptick in financial crime. In a speech at the Financial Crime Summit, Financial Conduct Authority (FCA) executive director Sarah Pritchard said “we are already seeing more scams,” as she warned financial crime is set to become “even more [...]
Squire Patton Boggs bolsters London bankruptcy practice in preparation for worsening economic climate September 7, 2022 US law firm Squire Patton Boggs has bolstered its London bankruptcy team in anticipation of worsening economic conditions. The law firm said it had poached five restructuring and insolvency lawyers from rival Brown Rudnick, including Charlotte Møller, the head of the firm’s EU bankruptcy practice. The hires come as Squire Patton Boggs said it anticipates [...]
Kwarteng tells City chiefs that UK borrowing must increase to pay for energy package September 7, 2022 Kwasi Kwarteng has today told City chiefs that short-term UK borrowing must increase to pay for a £100bn+ energy package, but that “fiscal discipline” will return soon. The new chancellor said in a meeting with financial services executives that the government is “committed to taking decisive action to help the British people now”, but that [...]
Britain hurtling toward long economic slump and record living standards squeeze September 6, 2022 Britain is sinking into a long economic slump that will deal the biggest hit to household finances on record, a new report released today shows. A historic inflation surge led by sky-high energy bills is set to tip the country into a recession this year, wiping off £2,000 of Brits’ real take home pay, according [...]
Yields on UK government debt scale to over 10-year high September 6, 2022 Yields on UK government debt hit their steepest level in over a decade today driven by investors fretting over the health of the country’s economy. The return on the benchmark 10-year gilt kissed 3.125 per cent, passing July 2011’s record. Five-gilt yields also climbed to the highest since August 2009, scaling to 3.061 per cent, [...]
EXCLUSIVE: New PM Liz Truss will protect ‘crown jewel’ City of London September 6, 2022 Liz Truss will “empower the City to drive economic growth” through tax cuts and regulatory reform as Prime Minister, she exclusively told City A.M.. The newly-appointed Conservative leader said, who will be appointed formally by Her Majesty the Queen at Balmoral today, she wanted to maintain the Square Mile’s competitive edge and “supercharge growth and [...]
‘The law of Karma works’: India overtakes former ruler Britain as fifth biggest economy September 5, 2022 India has overtaken its former ruler Britain to become the world’s fifth largest economy. A billionaire tycoon said the news shows the “the law of Karma works”, after the International Monetary Fund made the announcement this week. India’s economy grew seven per cent in the last three months, according to calculations based on US dollars, [...]