Britain’s new prime minister Rishi Sunak is set to meet with continuing Chancellor Jeremy Hunt today as they work to fill the multi-billion pound fiscal black hole inherited from the Truss administration.
Mr Sunak said on Tuesday he would place “economic stability and confidence at the heart of this government’s agenda.”
The coming days are likely to bring further details of what policies Mr Sunak might pursue alongside Mr Hunt. The fiscal statement is still scheduled for October 31, but there is speculation that date could shift.
5 things to start your day
1) Borrowing costs recover from mini-Budget chaos as Sunak readies spending cuts – Bonds recover from chaos under Liz Truss as Government braces for bleak OBR forecasts
2) Civil service warned ministers that energy bailout created risk of fraud – Newly published letters request a ministerial direction to implement the scheme
3) Anger in Brussels as it emerges EU may subsidise cheap power for Britain – Low prices on the continent could see electricity vacuumed up by export markets
4) Adidas cuts ties with Kanye West after rapper goads: ‘I can say anti-Semitic things, and Adidas can’t drop me’ – German sportswear giant warns it will take a €250m hit from ending the partnership
5) Jeremy Warner: Nicola Sturgeon’s latest independence bid is nothing more than magical thinking – In economics there is no such thing as having your cake and eating it too
What happened overnight
Asian shares climbed higher on Wednesday as investors clung to hopes that the pace of US and global rate hikes would start to slow. Although, US futures dropped after disappointing results from tech giants Alphabet and Microsoft.
E-mini futures for the S&P 500 dropped 1pc in early trade after Google-owner Alphabet posted softer-than-expected ad sales after the bell and Microsoft missed expected revenue forecasts.
Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1pc, led by a bounce in Hong Kong, while Japan’s Nikkei edged up 1.1pc by mid-morning.
The mainland Chinese benchmark index grew 1pc, while Hong Kong stocks jumped 2pc.
