Latest news with #UKMarkets
Bloomberg
03-07-2025
- Business
- Bloomberg
Starmer Backs Reeves After Tears Prompt Selloff, Trump Tax Bill Latest
UK markets rebounded from a sharp selloff as Prime Minister Keir Starmer sought to calm speculation about a possible exit by Chancellor of the Exchequer Rachel Reeves by saying she will stay in the role for many years to come. In a BBC interview late Wednesday, Starmer gave Reeves his full backing. 'She and I work together, we think together,' he said, adding, 'We're in lockstep.' In US politics, House Republicans overcame a critical procedural hurdle to advance President Donald Trump's massive tax and spending package early Thursday, holding a key vote open for hours past midnight as the president and his allies worked to win them over. Today's guests: Subitha Subramaniam, Sarasin & Partners Head of Investment Strategy, Rajaa Mekouar, Calista Direct Investors CEO, Eileen Burbidge, Passion Capital Founding Partner & Fertifa Executive Director, Andrea Illy, Illycaffe Chairman (Source: Bloomberg)
Yahoo
03-07-2025
- Business
- Yahoo
UK Markets Bounce as Starmer Says Reeves to Stay for Many Years
(Bloomberg) -- UK markets rebounded from a sharp selloff as Prime Minister Keir Starmer sought to calm speculation about a possible exit by Chancellor of the Exchequer Rachel Reeves by saying she will stay in the role for many years to come. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law The yield on 30-year bonds fell 12 basis points to 5.30% after a 19 basis point jump on Wednesday, the biggest increase since April. The pound was slightly higher at $1.3656 after a 0.8% slump the day before, while the UK's FTSE 250 Index of domestically focused stocks added 0.5%. 'The market has been really reassured by Keir Starmer's words,' said Henry Allen, macro strategist at Deutsche Bank AG. In a BBC interview late Wednesday, Starmer gave Reeves his full backing, hours after failing to guarantee her position when asked in parliament. 'She and I work together, we think together,' he said, adding, 'We're in lockstep.' Starmer reiterated that message in comments to a UK radio station on Thursday. He is also due to speak about the NHS at an event in London at 10:30 a.m. later today. The 10-year gilt yield, which rose 16 basis points yesterday, was nine basis points lower at 4.52% on Thursday. UK markets were jolted on Wednesday, with bonds, stocks and currency all tumbling in unison, as traders grew nervous about the possibility that a new chancellor might usher in increased government borrowing and threaten the county's already precarious finances. The gilts move was sharp enough to spill over into US Treasuries, the world's largest bond market, which is dealing with fiscal concerns of its own as President Donald Trump's massive tax and spending package advances through the House. US Treasuries posted modest gains on Thursday, sending the 10-year yield two basis points lower to 4.26%. What Bloomberg strategists say... 'The bond market may welcome clarity around Reeves given her vow to adhere to self-imposed fiscal rules. The prospect of a replacement being less inclined to stick to those rules fueled the selloff. But the government faces a tough set of choices nevertheless, which means that the risk premium that is now embedded into UK assets won't be fully unwound just yet.' — Ven Ram, macro strategist, Dubai. For the full piece, click here. The latest bout of volatility came as Members of Parliament from Starmer's ruling Labour Party forced him to scrap £5 billion ($6.8 billion) worth of cuts to welfare spending on Tuesday evening. That will make it even harder to tame the budget deficit. The selloff evoked smaller-scale echoes of the UK's market crisis in 2022, when Prime Minister Liz Truss was swept from power after her calamitous mini-budget rattled the confidence of investors and sent borrowing costs soaring. Market participants sought to downplay comparisons with that episode. 'Political uncertainty is high but not cataclysmic,' said Laurence Mutkin, head of EMEA rates strategy at Bank of Montreal, adding that the incremental spending is small in absolute terms. Mutkin 'won't worry about the market becoming disorderly' unless the 10-year yield shoots up to its year-to-date high of 4.88%, he added. --With assistance from Naomi Tajitsu, James Hirai and Ellen Milligan. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. 登入存取你的投資組合
Yahoo
03-07-2025
- Business
- Yahoo
UK Markets Bounce as Starmer Says Reeves to Stay for Many Years
(Bloomberg) -- UK markets rebounded from a sharp selloff as Prime Minister Keir Starmer sought to calm speculation about a possible exit by Chancellor of the Exchequer Rachel Reeves by saying she will stay in the role for many years to come. NYC Commutes Resume After Midtown Bus Terminal Crash Chaos Struggling Downtowns Are Looking to Lure New Crowds Massachusetts to Follow NYC in Making Landlords Pay Broker Fees What Gothenburg Got Out of Congestion Pricing California Exempts Building Projects From Environmental Law The yield on 30-year bonds fell 12 basis points to 5.30% after a 19 basis point jump on Wednesday, the biggest increase since April. The pound was slightly higher at $1.3656 after a 0.8% slump the day before, while the UK's FTSE 250 Index of domestically focused stocks added 0.5%. 'The market has been really reassured by Keir Starmer's words,' said Henry Allen, macro strategist at Deutsche Bank AG. In a BBC interview late Wednesday, Starmer gave Reeves his full backing, hours after failing to guarantee her position when asked in parliament. 'She and I work together, we think together,' he said, adding, 'We're in lockstep.' Starmer reiterated that message in comments to a UK radio station on Thursday. He is also due to speak about the NHS at an event in London at 10:30 a.m. later today. The 10-year gilt yield, which rose 16 basis points yesterday, was nine basis points lower at 4.52% on Thursday. UK markets were jolted on Wednesday, with bonds, stocks and currency all tumbling in unison, as traders grew nervous about the possibility that a new chancellor might usher in increased government borrowing and threaten the county's already precarious finances. The gilts move was sharp enough to spill over into US Treasuries, the world's largest bond market, which is dealing with fiscal concerns of its own as President Donald Trump's massive tax and spending package advances through the House. US Treasuries posted modest gains on Thursday, sending the 10-year yield two basis points lower to 4.26%. What Bloomberg strategists say... 'The bond market may welcome clarity around Reeves given her vow to adhere to self-imposed fiscal rules. The prospect of a replacement being less inclined to stick to those rules fueled the selloff. But the government faces a tough set of choices nevertheless, which means that the risk premium that is now embedded into UK assets won't be fully unwound just yet.' — Ven Ram, macro strategist, Dubai. For the full piece, click here. The latest bout of volatility came as Members of Parliament from Starmer's ruling Labour Party forced him to scrap £5 billion ($6.8 billion) worth of cuts to welfare spending on Tuesday evening. That will make it even harder to tame the budget deficit. The selloff evoked smaller-scale echoes of the UK's market crisis in 2022, when Prime Minister Liz Truss was swept from power after her calamitous mini-budget rattled the confidence of investors and sent borrowing costs soaring. Market participants sought to downplay comparisons with that episode. 'Political uncertainty is high but not cataclysmic,' said Laurence Mutkin, head of EMEA rates strategy at Bank of Montreal, adding that the incremental spending is small in absolute terms. Mutkin 'won't worry about the market becoming disorderly' unless the 10-year yield shoots up to its year-to-date high of 4.88%, he added. --With assistance from Naomi Tajitsu, James Hirai and Ellen Milligan. SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too America's Top Consumer-Sentiment Economist Is Worried How to Steal a House China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P.
Fox News
20-05-2025
- Business
- Fox News
Growing Hope For American Farmers
The United States and the UK have reached a trade deal that gives the American agriculture industry far greater access to the UK markets. President Trump called the new agreement 'historic,' pledging it will reduce the non-tariff barriers that unfairly discriminate against American products by ensuring American farmers and ranchers can sell their goods to global markets. First, Agriculture Department Secretary Brooke Rollins joins the Rundown to discuss the expansion of U.S. farm products into the UK and what the President teased as 'billions of dollars of export opportunities produced by America's great farmers.' Later, farmer and author of 'Land Rich, Cash Poor,' Brian Reisinger, joins to discuss how the deal delivers relief to U.S. farmers after the squeeze of tariffs. Over the weekend, news broke that former President Joe Biden has been diagnosed with stage 4 prostate cancer. Prostate cancer is the most common cancer among adult men in the United States and is the second leading cause of cancer-related deaths. Dr. Randall Lee, Assistant Professor in the Department of Urology at the FOX Chase Cancer Center at Temple Health, joins to discuss the former President's diagnosis and offers insights on how to detect and treat prostate cancer. Plus, commentary from FOX News Digital columnist David Marcus. Photo Credit: Matt Griggs Learn more about your ad choices. Visit
Globe and Mail
08-05-2025
- Business
- Globe and Mail
Scarred U.K. assets soothed by U.S. trade pact, Bank of England rate cuts
Investors are betting on long-depressed U.K. 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 U.K. 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 U.K. stocks outperforming the U.S. this year. The FTSE is up just over 4 per cent this year, while the broad S&P 500 index is down almost 4 per cent. 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 U.K. government borrowing rates, to likely drop from current levels around 5.2 per cent. 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 per cent from 27.5 per cent, while levies on steel and aluminum will reduce to zero. In late London trade, the domestically-focused FTSE 250 index was up 0.6 per cent. The U.K. 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 co-operation in areas like youth mobility and labour. U.K. 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 U.K.) 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 U.K., 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 U.K. 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 U.K. 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 U.K., 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 U.K. 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.' Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
