Britain’s shadow banking system is raising serious concerns after bond market storm

Analysts are concerned about a knock-on effect to the UK’s shadow banking sector in the event of a sudden rise in interest rates. Photo by Richard Baker | In Pictures | Getty Images LONDON — After last week’s chaos in British bond markets following the government’s Sep. 23 “mini-budget,” analysts are sounding the alarm on … Read more

UK finance minister pledges no more distractions after tax rate U-turn

Finance Minister Kwasi Kwarteng on Monday morning confirmed that the government would be scrapping its plans to cut tax for the country’s highest earners. Leon Neal | Getty Images News | Getty Images UK Finance Minister Kwasi Kwarteng on Monday said the government would not be distracted from delivering on its growth plan, shortly after … Read more

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

European stocks, markets, earnings, data and news

British pound jumps on reports UK government will U-turn on cut to top tax rate The British pound jumped on Monday morning on reports that the UK government will reverse plans to scrap the top rate of income tax. Sterling gained 0.8% against the dollar to trade at around $1,1250 shortly after 7 am London … Read more

Britain’s Liz Truss holds emergency talks with budget watchdog

Britain’s Prime Minister Liz Truss and Britain’s Chancellor of the Exchequer Kwasi Kwarteng. Dylan Martinez | Afp | Getty Images LONDON — British Prime Minister Liz Truss and her Finance Minister Kwasi Kwarteng on Friday with the UK’s independent monetary watchdog, the Office for Budget Responsibility, for talks. The discussions followed a turbulent week for … Read more

Global stocks struggle on economic fears

LONDON ― European markets are set for a mixed open on Friday as the third quarter draws to a close, with global stocks continuing to struggle amid fears over slowing growth and aggressive monetary policy tightening. The widespread sell-off on Wall Street continued on Thursday, with all three major averages falling sharply as investors assessed … Read more

UK PM Liz Truss defends tax cuts, vows to press on

UK Prime Minister Liz Truss announces a financial package to support people with energy bills. Dan Kitwood/Staff/Getty Images LONDON — British Prime Minister Liz Truss on Thursday defended the fiscal policies announced last week which sparked chaos in UK markets, saying the country had been put on a “better trajectory.” Speaking on a round of … Read more

IMF gives damning verdict on Britain’s tax cuts

The new economic measures laid out by the UK government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund. Yuri Gripas | Reuters LONDON — The new economic measures laid out by the UK government “will likely increase inequality,” the International Monetary Fund said in a rare statement. While the fiscal … Read more

UK lenders halt mortgage deals to customers after market chaos

The British bond and currency markets have been in turmoil since Finance Minister Kwasi Kwarteng announced his “mini-budget” on Friday. Oli Scarff | Getty Images News | Getty Images LONDON – UK lenders Virgin Money, Halifax and Skipton Building Society pulled some of their mortgage deals to customers after the tumult in British bond markets. … Read more