UK’s tax cut pivot down to politics not economy, analysts say

LONDON — The UK government’s reversal on scrapping the top rate of income tax is down to political optics and will not reassure market skittishness over its economic plan, analysts told CNBC Monday. The tax cut, which Prime Minister Liz Truss was defending just hours before, would have abolished a 45% rate paid on annual … Read more

British pound jumps as UK government U-turns on cut to top tax rate

UK Chancellor Kwasi Kwarteng outside 10 Downing Street. Britain will cap the cost of electricity and gas for businesses. Rob Pinney | Getty Images News | Getty Images LONDON — The British pound rose sharply Monday morning as the UK government reversed its planned scrapping of the top rate of income tax. “It is clear … Read more

Asia markets rise, Hang Seng index up 2% after Wall Street rebound

EV maker Leapmotor’s shares plunge in Hong Kong debut Chinese electric vehicle maker Leapmotor’s shares tumbled more than 32% from its offer price of 48 Hong Kong dollars ($6.29) per share on its first day of trade in the city. Onewo, a subsidiary of property developer China Vanke, also started trading in Hong Kong. It … Read more

China’s central bank PBOC warns against yuan speculation

The Chinese yuan weakened past the closely-watched 7.2 level against the greenback this week. Getty Images BEIJING — The People’s Bank of China has warned against betting on the yuan, after its rapid decline against the US dollar this week. “Do not bet on a one-sided appreciation or deprecation of the renminbi exchange rate,” the … Read more

The S&P 500 falls to a fresh low for the year. Here’s where stocks may go next

The S&P 500 broke below its June low, and Wall Street is debating whether the sell-off is nearing an end or is more pain in store for investors. The S & P 500 briefly fell to 3,623 Tuesday, a new bear market low, below its June intraday low of 3,636. The market continued to test … Read more

Larry Summers blasts UK’s ‘utterly irresponsible’ tax policy

Larry Summers Cameron Costa | CNBC LONDON — Former US Treasury Secretary Larry Summers on Tuesday warned that the UK has lost sovereign credibility after the new government’s fiscal policy sent markets into a tailspin. The British pound hit an all-time low against the dollar in the early hours of Monday morning, before recovering slightly … Read more

Britain’s lurch to Reaganomics gets thumbs down from markets

Truss has now put the country on an economic road completely at odds with most, if not all, major global economies. Hannah Mckay | Reuters LONDON — New UK Prime Minister Liz Truss may have talked big on “trickle-down economics” during her campaign trail this summer, but no-one could have predicted the swathe of tax … Read more

Liz Truss pursues ‘trickle-down economics’ despite scorn from Biden

British Prime Minister Liz Truss and US President Joe Biden formally met for the first time at the United Nations General Assembly in New York City, following clashes in economic policy between the two leaders. Wpa Pool | Getty Images LONDON — The British government is set to announce sweeping tax cuts for businesses and … Read more