Economists warn UK to face blackouts under Liz Truss energy plan September 8, 2022 Economists today warned prime minister Liz Truss’s decision to freeze energy bills for everyone in the UK at £2,500 raises the risk of blackouts. Experts at the economic think tank the Institute for Fiscal Studies (IFS) said energy supplies may run dry due to the government propping up energy spending. “Households, businesses or governments… will [...]
European Central Bank fires record rate rise shot to tame scorching inflation September 8, 2022 The European Central Bank (ECB) today hiked interest rates by the biggest amount since its creation in 1999 as it steps up its fight against a historic inflation surge on the Continent. President Christine Lagarde and co lifted borrowing costs in the bloc of 19 countries using the euro 75 basis points. The move takes [...]
All eyes on the Pound as Sterling set for bounce on Truss’s energy bill freeze September 8, 2022 It’s a big day in the markets with Liz Truss set to confirm her energy plans. The proposals are set to place a huge burden on the UK’s already strained finances. UK energy bills are set to rise to more than £3,500 a year for the average household from October, with Truss expected to outline [...]
PM Liz Truss to announce energy plan: Borrow £150bn, restart fracking and freeze bills at £2,500 September 8, 2022 Prime Minister Liz Truss is set to announce bold new proposals to tackle the energy crisis, including borrowing £150bn, freezing energy bills at £2,500 until 2024 and restarting fracking. The newly-minted PM’s plans come after she dismissed suggestions of a windfall tax on energy producers to pay for the borrowing, as questions are asked about [...]
London’s FTSE 100 hit by slumping energy prices and downturn jitters September 7, 2022 London’s FTSE 100 today was ensnared by investors fretting over a slowdown in the world economy and falling energy prices. The capital’s premier index dropped 0.86 per cent to 7,237.83 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, edged 0.05 per cent lower to [...]
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 [...]
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 [...]
Meet Liz Truss’s top team: Long-term ally Kwasi Kwarteng to hold UK’s purse strings as Chancellor September 7, 2022 Following yesterday’s Cabinet reshuffle, City A.M. introduces you to some of Liz Truss’s key ministers. Who are they? What has their journey been so far? Also check out the new Home Secretary, Suella Braverman, the new Foreign Secretary, James Cleverly as well as the new Business Secretary, Jacob Rees-Mogg. Britain’s new Chancellor Kwasi Kwarteng has the job [...]
The price cap freeze: It’s not good, but it’s not the worst September 7, 2022 With the Liz Truss facing a host of bad options, a transparent freeze on the energy price cap might be the least bad of the lot.