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 the 45% rate paid on annual … Read more

UK government abolishes plan to cut tax on high earners in major U-turn

“It is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our economy,” Finance Minister Kwasi Kwarteng said in a statement. Rob Pinney | Getty Images News | Getty Images LONDON — The UK government on Monday reversed a plan to scrap … Read more

British pound jumps on reports UK government will U-turn 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 The cuts were poorly received by financial markets and a scrapping of the 45% tax paid on income over £150,000 ($166,770) was also seen as politically toxic … Read more

Larry Summers blasts UK’s ‘utterly irresponsible’ fiscal 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

Turkey cuts interest rates again despite 80% inflation

Russian tourists to Europe decreased dramatically over the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Soup Images | Lightrocket | Getty Images Turkey’s central bank surprised markets once again with its decision Thursday to cut its key interest rate, despite inflation in the country surging beyond 80%. The country’s … Read more

Stocks mostly higher; RBA hikes interest rates

The Reserve Bank of Australia building in Sydney, Australia, on Monday, Sept. 6, 2021. David Gray | Bloomberg | Getty Images Shares in the Asia-Pacific traded mostly higher on Tuesday as Australia’s central bank raised interest rates again. Mainland China’s Shanghai Composite added 1.36% to 3,243.56 and the Shenzhen Component was 1,037% higher at 11,799.81 … Read more

European markets open to close, data, earnings and news

European markets are heading fell sharply on Monday as investors ponder economic risks in the region, reignited by concerns about energy supply from Russia. The pan-European Stoxx 600 dropped 1.3% in early trade, with autos shedding 3.5% to lead losses as most sectors and major bourses slid deep into negative territory. Oil and gas stocks … Read more

Jackson Hole, HKEX cancels morning session on typhoon warning

Qantas shares jump after the buyback announcement, earnings report Shares of Australian airline Qantas jumped as much as 10% after the company reported earnings and announced plans for a share buyback. The company posted an underlying loss before tax of 1.86 billion Australian dollars ($1.29 billion) for financial year of 2022. “While the first three … Read more