UK tax cut turns to politics, not economics, analysts say

LONDON – The UK government’s withdrawal from cutting the top income tax rate is due to political optics and will not reassure market timidity about its economic plan, analysts told CNBC on Monday. The tax cut, which Prime Minister Liz Truss defended a few hours earlier, is said to have abolished a 45% rate paid … Read more

British government abolishes plan to lower taxes on high earners in major turnaround

“Clearly, the abolition of the 45p tax rate has become a distraction from our overriding mission to address the challenges facing our economy,” Finance Minister Kwasi Kwarteng said in a statement. Rob Pinney | Getty Images News | Getty Images LONDON – The British government on Monday reversed a planned cut from the top income … Read more

Britain’s jump to Reaganomics gets thumbs down from the markets

Truss has now set the country on an economic path that is completely at odds with most, if not all, of the major global economies. Hannah Mckay | Reuters LONDON — New British Prime Minister Liz Truss may have talked a lot about ‘trickle-down economics’ during her campaign this summer, but no one could have … Read more

From the Fed to the currency crisis in Europe, here’s what’s behind this sell-off in the financial markets:

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that the battle with inflation could lead to much higher interest rates and a recession. The sell-off was global on Friday, in a week in … Read more

Liz Truss aims for ‘trickle-down economy’ despite Biden’s disdain

British Prime Minister Liz Truss and US President Joe Biden met formally for the first time at the United Nations General Assembly in New York City, following economic policy clashes between the two leaders. Wpa pool | Getty Images LONDON — The British government is set to announce sweeping tax cuts for businesses and the … Read more

Turkey cuts interest rates again as country struggles with inflation

The number of Russian tourists to Europe dropped dramatically during the summer, but rose in several other destinations, including Turkey (here). Onur Dogman | Sopa images | Light rocket | Getty Images Turkey’s central bank surprised markets again with its decision Thursday to cut its key interest rate, despite inflation in the country soaring above … Read more

Bank of England raises interest rates by 50 basis points, in seventh consecutive hike

The Bank of England warned that the UK will slip into recession later this year. The expected recession is expected to be the longest since the global financial crisis. Vuk Valcic | SOPA images | Light Rocket | Getty Images The Bank of England voted to raise its key rate from 1.75% to 2.25% on … Read more

Fed hike, Bank of Japan, interest rates, currencies

Japanese Yen Strengthens Amid Reports Of Official Announcement Of FX Intervention The Japanese yen rose more than 2% against the dollar on reports from officials announcing immediate intervention to defend the currency. That comes after the yen weakened to 145 levels against the greenback, following the Bank of Japan’s decision to keep interest rates stable. … Read more

Japanese CPI Inflation, Prime Loan Rate in China, Currencies

CNBC Pro: Fund Manager Says Bear Market Is Going To Get ‘Dirty’ Fund manager Cole Smead believes the stock market is still in the early stages of a bear market — and warns it won’t be a “garden variant.” But it doesn’t wake him up. This is why: Pro subscribers can read more here. — … Read more

Stocks higher; RBA rate decision ahead

The Reserve Bank of Australia building in Sydney, Australia, on Monday, September 6, 2021. David Gray | Bloomberg | Getty Images Shares in Asia-Pacific traded higher on Tuesday ahead of the Reserve Bank of Australia’s rate decision. Japan’s Nikkei 225 recovered from previous losses and rose 0.46% and the Topix index gained 0.28%. The Hang … Read more