Latest news with #LizTruss'
Yahoo
08-05-2025
- Business
- Yahoo
Analysis-Scarred UK assets soothed by US trade pact, BoE rate cuts
By Naomi Rovnick LONDON (Reuters) -Investors are betting on long-depressed UK markets as a U.S. trade deal, rate cuts and hopes for renewed links with Europe spur optimism for a revival as they search for alternatives to a volatile Wall Street and flailing dollar. Britain's FTSE 100 share index completed its longest daily winning streak of all time this month and is now moving in line with international peers for the first time since 2021, while sterling sits near 38-month highs against the dollar. Money managers expect at least more stability for UK assets scarred by Brexit, ex-Prime Minister Liz Truss' 2022 mini-Budget scare and January's bout of capital flight as soaring bond yields threatened shaky government finances. A UK-EU summit, bets for Thursday's Bank of England rate cut to be followed by more easing this year and a wider move into Europe and Asia by investors spooked by potential tariff hits to U.S. growth are also sweeping gloom out of British markets. "These are all marginal benefits that together add up into something bigger," said Invesco global head of asset allocation research Paul Jackson, who sees UK stocks outperforming the U.S. this year. The FTSE is up just over 4% this year, while the broad S&P 500 index is down almost 4%. Jill Hirzel, senior investment specialist at London-based Insight Investment, said the 626 billion pounds ($834.27 billion) asset manager expected 30-year gilt yields, which underpin UK government borrowing rates, to likely drop from current levels around 5.2%. When bond yield falls, their price rises. TRADE HOPES U.S. President Donald Trump, who unleashed market turmoil with universal levies on April 2 before pausing most of those, on Thursday unveiled a trade agreement with the UK. Britain's car industry will see U.S. tariffs immediately slashed to 10% from 27.5%, while levies on steel and aluminum will reduce to zero. In late London trade, the domestically-focused FTSE 250 index was up 0.6%. The UK was already viewed as unlikely to be targeted by punitive import taxes, Fidelity International portfolio manager Shamil Gohil said, but a clear trade deal would lift market and economic sentiment from here. "It reduces uncertainty, with clarity on tariffs helping to give confidence to businesses and consumers to start spending and investing," Gohil added. "We could even see a GDP bump because of it." British Prime Minister Keir Starmer also wants annual UK-EU summits to follow talks in London on May 19, which will focus on defence partnerships but could set the scene for renewed cooperation in areas like youth mobility and labour. STABILITY? UK assets have been on a rollercoaster ride for years, with the latest selling spree in January pushing sterling to 14-month lows and 10-year gilt yields to 17-year highs as fiscal and market stability fears fed on each other. A brief market rally alongside the labour government's landslide election win last year faded fast as investors stayed cautious on British assets layered with extra risk after the 2022 rout and 2016 Brexit vote. Heightened U.S. trade uncertainty, however, which has sparked anxiety about growth slowing and inflation rising and shaken faith in U.S. assets, means Britain appears relatively steady. "I think the political volatility (in the UK) continues, but hopefully from an international perspective investors become less concerned about the fiscal issues than they have been in the last decade," Aberdeen Investments fixed income fund manager Mark Munro said. "Some of that concern might move elsewhere (with investors) starting to look again at U.S. budget deficits and the volatility of Treasuries." Big investors have warned that protectionist and volatile U.S. trade policies may erode the safe haven status of U.S. Treasuries, with higher yields raising the cost of financing $37 trillion worth of national debt. In the UK, weak growth and high borrowing are still driving finance minister Rachel Reeves towards hiking taxes or breaching budget targets, the National Institute of Economic and Social Research think tank said, but investors see rate cuts helping. "The UK has been viewed poorly and discounted for quite a long time now and I think overall it is a lot more stable now than what we've had," said Janus Henderson global equity income manager Andrew Jones, who said he has had overweight stance on UK stocks for some time. And although Bank of England rate setters were split on Thursday's rate decision, lower oil prices and a stronger pound would help contain price pressure and clear the way for further rate cuts ahead, analysts said. Premier Miton CIO Neil Birrell added that while he was not currently raising exposure to the UK, he was receiving an unusually high volume of queries about this long unpopular market from clients. Fidelity's Gohil said overseas pension fund clients had started expressing interest in buying into Britain to diversify away from the U.S. He was also raising holdings of debt issued by UK banks and utilities groups. "The UK's definitely more immune to the direct impact of trade wars. So actually, as a place to hide, it's not the worst." ($1 = 0.7504 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
08-05-2025
- Business
- Reuters
Scarred UK assets soothed by US trade pact, BoE rate cuts
LONDON, May 8 (Reuters) - Investors are betting on long-depressed UK markets as a U.S. trade deal, rate cuts and hopes for renewed links with Europe spur optimism for a revival as they search for alternatives to a volatile Wall Street and flailing dollar. Britain's FTSE 100 (.FTSE), opens new tab share index completed its longest daily winning streak of all time this month and is now moving in line with international peers for the first time since 2021, while sterling sits near 38-month highs against the dollar . Money managers expect at least more stability for UK assets scarred by Brexit, ex-Prime Minister Liz Truss' 2022 mini-Budget scare and January's bout of capital flight as soaring bond yields threatened shaky government finances. A UK-EU summit, bets for Thursday's Bank of England rate cut to be followed by more easing this year and a wider move into Europe and Asia by investors spooked by potential tariff hits to U.S. growth are also sweeping gloom out of British markets. "These are all marginal benefits that together add up into something bigger," said Invesco global head of asset allocation research Paul Jackson, who sees UK stocks outperforming the U.S. this year. The FTSE is up just over 4% this year, while the broad S&P 500 index is down almost 4% (.SPX), opens new tab. Jill Hirzel, senior investment specialist at London-based Insight Investment, said the 626 billion pounds ($834.27 billion) asset manager expected 30-year gilt yields, which underpin UK government borrowing rates, to likely drop from current levels around 5.2% . When bond yield falls, their price rises. U.S. President Donald Trump, who unleashed market turmoil with universal levies on April 2 before pausing most of those, on Thursday unveiled a trade agreement with the UK. Britain's car industry will see U.S. tariffs immediately slashed to 10% from 27.5%, while levies on steel and aluminum will reduce to zero. In late London trade, the domestically-focused FTSE 250 index was up 0.6% (.FTMC), opens new tab. The UK was already viewed as unlikely to be targeted by punitive import taxes, Fidelity International portfolio manager Shamil Gohil said, but a clear trade deal would lift market and economic sentiment from here. "It reduces uncertainty, with clarity on tariffs helping to give confidence to businesses and consumers to start spending and investing," Gohil added. "We could even see a GDP bump because of it." British Prime Minister Keir Starmer also wants annual UK-EU summits to follow talks in London on May 19, which will focus on defence partnerships but could set the scene for renewed cooperation in areas like youth mobility and labour. UK assets have been on a rollercoaster ride for years, with the latest selling spree in January pushing sterling to 14-month lows and 10-year gilt yields to 17-year highs as fiscal and market stability fears fed on each other. A brief market rally alongside the labour government's landslide election win last year faded fast as investors stayed cautious on British assets layered with extra risk after the 2022 rout and 2016 Brexit vote. Heightened U.S. trade uncertainty, however, which has sparked anxiety about growth slowing and inflation rising and shaken faith in U.S. assets, means Britain appears relatively steady. "I think the political volatility (in the UK) continues, but hopefully from an international perspective investors become less concerned about the fiscal issues than they have been in the last decade," Aberdeen Investments fixed income fund manager Mark Munro said. "Some of that concern might move elsewhere (with investors) starting to look again at U.S. budget deficits and the volatility of Treasuries." Big investors have warned that protectionist and volatile U.S. trade policies may erode the safe haven status of U.S. Treasuries, with higher yields raising the cost of financing $37 trillion worth of national debt. In the UK, weak growth and high borrowing are still driving finance minister Rachel Reeves towards hiking taxes or breaching budget targets, the National Institute of Economic and Social Research think tank said, but investors see rate cuts helping. "The UK has been viewed poorly and discounted for quite a long time now and I think overall it is a lot more stable now than what we've had," said Janus Henderson global equity income manager Andrew Jones, who said he has had overweight stance on UK stocks for some time. And although Bank of England rate setters were split on Thursday's rate decision, lower oil prices and a stronger pound would help contain price pressure and clear the way for further rate cuts ahead, analysts said. Premier Miton CIO Neil Birrell added that while he was not currently raising exposure to the UK, he was receiving an unusually high volume of queries about this long unpopular market from clients. Fidelity's Gohil said overseas pension fund clients had started expressing interest in buying into Britain to diversify away from the U.S. He was also raising holdings of debt issued by UK banks and utilities groups. "The UK's definitely more immune to the direct impact of trade wars. So actually, as a place to hide, it's not the worst." ($1 = 0.7504 pounds)
The Irish Sun
07-05-2025
- Entertainment
- The Irish Sun
Once-bustling Pontins seaside holiday park loved by families left abandoned & frozen in time after suddenly closing down
A ONCE-bustling Pontins park has become an eerie ghost town after closing down two years ago. The site has stood abandoned and unused ever since, becoming a 4 The Pontins site has been frozen in time since it was shuttered Credit: Exploring with Matt 4 Pontins closed the site in 2023 Credit: Exploring with Matt 4 The park was one of three Pontins sites to suddenly close Credit: Exploring with Matt Pontins Holiday Park in Southport was closed suddenly, with holiday apartments being completely abandoned by the super-chain. Furnishings and decorations have been left completely intact, creating an almost post-apocalyptic feeling. Outdoor play areas have been unused for years, with timber swings, picnic tables and slides standing silent on the site. Thrill-seeking adventurer and urban explorer Matt first discovered the scene, before sharing it with fans on his social media page Exploring with Matt. Read More on Pontins Opening up about his daring career, Matt said: "I find places to go by looking at online websites dedicated to abandoned buildings and there is a huge online urban explorers community. 'For me, I am just so interested in buildings with a lot of history, such as old theatres, hospitals or abandoned colleges or 'They are like time capsules. 'It is so fascinating to me." Most read in News Travel Upon seeing the chilling video, fans began sharing their experiences at the One commented: "It's a shame it's closed and looks really tidy and clean! I stayed at 'nightmare' Pontins hotel with ant nests and broken lights - I made a quick escape "This place has probably made so many memories over the years with children making friends and people meeting their life long partners!" Another blamed the Cost of Living crisis - which began under the previous Tory government - on the closure. Rental and maintenance costs have skyrocketed in recent years, thanks to factors including Liz Truss' mini-budget, COVID, Brexit and Trump's tariffs. Many companies, At the time of the Southport closure, Pontins said: "It is with great sadness that we announce the closure of Pontins Southport Holiday Park. "After assessing the future viability of the park, we have come to the difficult decision to close our doors. "Unfortunately, this means that Pontins Southport Holiday Park will be closing from Wednesday 3rd January 2024. "We apologise for any inconvenience caused." The company also closed its 4 The interiors have remained unchanged for years Credit: Exploring with Matt
Reuters
23-04-2025
- Business
- Reuters
UK company activity weakens by most in more than 2 years as US trade war rages, PMI shows
April 23 (Reuters) - British companies buckled in April under the strain of an escalating global trade war that threatens to tip the economy into a new downturn, a survey showed on Wednesday. The S&P Global Composite Purchasing Managers' Index (PMI), a gauge of the private sector economy, slid to 48.2 in April from 51.5 in March. This marked the lowest reading since November 2022 when businesses were wracked by surging energy costs and financial market turmoil after former Prime Minister Liz Truss' poorly received budget plans. Readings below 50 denote a contraction in business activity. Export orders fell at the fastest pace since the early months of the COVID-19 pandemic in 2020, while costs faced by businesses grew at the fastest rate in more than two years as higher employment taxes and an increased minimum wage kicked in. Despite the inflationary warning signal, the sharp drop in business activity is likely to further cement expectations that the Bank of England will cut interest rates next month - something that had looked uncertain a few weeks ago. Britain's economy defied expectations in February by growing 0.5%, according to official data published earlier this month. Wednesday's PMI suggested the economy is now contracting at a quarterly pace of around 0.3%, S&P Global Chief Business Economist Chris Williamson said. Although Britain hopes it will emerge with a relatively low tariff rate on goods sent to the United States compared with competing economies, Brexit has already weakened exporters and weaker global growth is likely to hurt their prospects further. "The collapse in confidence and drop in output during April raise red flags as to the near-term economic outlook and add pressure on the Bank of England to reduce interest rates again at its May meeting," Williamson said. Financial markets on Tuesday fully priced in a BoE rate cut at its May 8 announcement. Williamson said the global outlook was the biggest concern for British companies but they had also faced sharply higher staffing costs in April due to employment tax rises and a nearly 7% rise in the minimum wage. "There will be some uncertainty as to whether the recent upturn in price pressures could become entrenched or whether it merely represents a short-term tax-related spike which should be 'looked through'," Williamson said. The PMI for the services sector fell to 48.9 from 52.5, dropping from a seven-month high in March to a 27-month low this month. The manufacturing sector, already struggling, fared even worse in April as its PMI fell to 44.0 from 44.9 in March, a 20-month low. New manufacturing export orders collapsed at a rate surpassed only three times in monthly PMI surveys dating back to 1996.
Bloomberg
08-04-2025
- Business
- Bloomberg
US Bonds Stabilize After Choppiest Day of Trading in Five Years
US Treasuries tentatively resumed their gains on Tuesday after the wildest day for bond traders since the height of the pandemic in March 2020. Yields on 10-year US bonds fell three basis points to 4.16%, after a volatile start to the week that saw yields whip between gains and losses. German rates remained higher, while UK gilts recouped some gains after long-end yields surged on Monday by the most since former Prime Minister Liz Truss' 2022 mini-budget.
