Newsletter Sep 28, 2022

Sterling swallows bitter pill, dollar advances on hawkish Fed speak

The pound languished near a record low on Wednesday on lingering concerns over Britain's radical tax cuts to spur growth, while the dollar edged up after Treasury yields surged overnight.

IMF says UK fiscal measures will 'likely increase inequality,' urges rethink

The International Monetary Fund on Tuesday took aim at new British financial plans that have roiled markets, warning that "large and untargeted fiscal packages" would likely increase inequality in Britain and could undermine monetary policy.

Oil prices mixed as hurricane Ian output cuts support, dollar weighs

Oil prices were mixed in early Asian trade on Wednesday as support from U.S. production cuts caused by Hurricane Ian contended with crude storage builds and a strong dollar.

JPMorgan doubles down on UK retail bank Chase

Wall Street giant JPMorgan is planning to double the size of its workforce at fledgling British retail bank Chase to at least 2,000 within two years, the CEO of the venture told Reuters, despite losses and some investor scepticism.

Pound rebounds, stocks steady tracking recession risks

The dollar weakened slightly against major rivals Tuesday, helping the pound to rebound from a record low, while equity markets stabilised after recent volatility.

Reversing UK confidence crash requires policy U-turn: economists

Rock-bottom investor confidence in Britain will only recover if finance minister Kwasi Kwarteng scraps the economic plan that unleashed such turmoil in financial markets, leading economists, investors and banks warned on Tuesday.

Starmer to insist Labour fit to govern as UK hit by crisis

Labour leader Keir Starmer will argue Tuesday he is ready to lead Britain out of economic crisis.

Europe's STOXX 600 climbs 1% after three-day selloff; Nexi shines

Europe's STOXX 600 index rose on Tuesday, led by automakers and travel stocks following a three-day selloff triggered by global recession fears, while Italian payments group Nexi topped the benchmark index on a strong business outlook.

After high profile sacking, UK civil servants fear for jobs under Truss

"Speaking truth unto power" has long been the motto of Britain's civil service, but now some government workers charged with offering ministers impartial advice whatever their party are fearful of their political bosses and are keeping quiet.

Bank of England's Pill sees 'significant' policy move, but only in November

The Bank of England is likely to deliver a "significant policy response" to finance minister Kwasi Kwarteng's huge tax cuts but it should wait until its next scheduled meeting in November before making its move, BoE Chief Economist Huw Pill said.

Europe's generic drugmakers may cut output due to surging energy bills

Europe's drug makers have warned they may stop making some cheap generic medicines because of surging electricity costs and are calling for an overhaul of the way they are priced, the latest industry to seek help as the energy crisis deepens.

Chinese snap up used Rolexes, Birkins to satisfy luxury cravings amid slowdown

China's coronavirus-driven economic slowdown is proving to be a boon for Zhu Tainiqi, the Shanghai-based founder of second-hand luxury goods marketplace ZZER, who is now scouting for shop space to expand the business.

GM delays return-to-work plans to 2023

General Motors Co on Tuesday said it will not mandate workers return to offices before 2023 after it had told them on Friday that they would be expected to work three days on-campus each week later this year.

Saudi Arabia's crown prince named prime minister

Prince Mohammed, who turned 37 last month, has been first in line to succeed his father as king since 2017.

Eisai, Biogen say Alzheimer's drug succeeds in slowing cognitive decline

Eisai Co Ltd and Biogen Inc on Tuesday said their experimental Alzheimer's drug significantly slowed cognitive and functional decline in a large trial of patients in the early stages of the disease, marking a rare win in a field littered with failed drugs.