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. [...]
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 [...]
Explainer: Bank of England hasn’t lost £65bn of UK’s money October 4, 2022 Let’s get one thing straight: the Bank of England is not going to lose £65bn on buying government debt. There’ve been a few social media posts (and a few newspaper headlines) whipping up this point. It’s untrue. Last week, the Bank said it will buy up to £65bn worth of long-dated government debt until 14 [...]
DeVere shutters UK property investment division as mortgage rate rises loom October 3, 2022 Independent financial advisory organisation DeVere is to pull all its property investments in the UK market amid looming interest rate rises. The group, which advises on around $12bn (£10.7bn) in funds, said today it will temporarily shutter its property investment division as inflation in the UK spirals. The Bank of England is widely expected to [...]
UK borrowing costs surge and FTSE tanks after Truss and Kwarteng back mini-budget September 29, 2022 UK borrowing costs fired higher and the country’s largest listed companies tanked today after prime minister Liz Truss and chancellor Kwasi Kwarteng doubled down on their tax cutting and borrowing plans. London’s FTSE 100, home to the UK’s top companies, shed 1.77 two per cent. The mid-cap FTSE 250 index nose dived more than three [...]
UK already in recession but market chaos will make it worse, KPMG forecasts September 29, 2022 The UK is already in a recession that is likely to be intensified by turmoil in financial markets, new forecasts published today reveal. Surging inflation – running at a 40-year high of 9.9 per cent – has squeezed households and businesses, forcing them to cut spending and likely steering the economy into reverse in the [...]
Bank of England launches £65bn emergency care package to tame UK market carnage September 28, 2022 The Bank of England today scrambled to head off a “material risk to UK financial stability” driven by higher UK borrowing costs. In a mid-morning statement to the City, the Bank said it is launching an emergency, time-limited bond buying scheme amid market chaos triggered by investor concerns over the UK’s fiscal and economic credibility. [...]
Rates on UK debt surge higher and pound slumps against US dollar September 28, 2022 Rates on UK debt surged higher today and the pound trailed the US dollar again driven by investors sweating over the government’s tax and borrowing splurge. The yield on the 30-year UK gilt jumped six basis points to 5.048 per cent, the highest since 1998. Investors were demanding a greater return ahead of the government [...]
IMF “monitoring developments” in UK after currency fall and mini-budget September 27, 2022 The International Monetary Fund gave Kwasi Kwarteng and Liz Truss a slap on the wrist this evening, with a spokesman saying it did not “recommend large and untargeted fiscal packages” amid inflation concerns. The warning from the IMF comes after another day of currency fluctuations, triggered by a so-called ‘mini budget’ of tax cuts announced [...]