Tax cut won’t stabilize pound, economists warn as FTSE slumps

Ggood morning.

The British pound fell 0.19 pc in early trading to $1,1144, but has recovered strongly since the Bank of England announced it would buy up as much government debt as needed to restore order.

The Bank of England was in touch with Swiss authorities last night after an attempt by Credit Suisse to calm nerves instead fueled fears of further turbulence in the financial system.

In his Conservative Party conference speech today, Mr. Kwarteng will argue that an “incredibly strong US dollar” is a problem facing all economies, rather than just the UK.

5 things to start your day with

1) Julian Jessop: Markets are wrong about ‘Trussonomics’, as they are about Brexit

2) ‘Chaotic’ service jeopardizes West Coast mainline contract Avanti West Coast ‘should be stripped of control’, Greater Manchester mayor says

3) Strong dollar puts pressure on Jaguar Land Rover’s debt – More than a third of Britain’s largest carmaker’s debt of £8.9 billion is in dollars

4) Pension titan vows to support renaissance nuclear power Phoenix Group breaks ranks with rivals to support new stations

5) Liam Halligan: The £895bn QE monster is really to blame for the market collapse

What happened overnight?

Shares of Hong Kong fell again as trading opens on Monday, with investors looking forward to a key US jobs report at the end of the week, while also focusing on the earnings season ahead.

The Hang Seng Index lost 1pc, or 172.58 points, to 17,050.25. Meanwhile, mainland Chinese markets will be closed all week for a national holiday.

Tokyo stocks opened lower, exacerbating declines on Wall Street, where fears grew that monetary tightening could lead to a global recession.

The benchmark Nikkei 225 index fell 0.89 pc or 231.30 points to 25,705.91 in early trading, while the broader Topix index plunged 0.73 pc or 13.48 points to 1,822.46.

coming today

  • Economy: Manufacturing PMI (UK, US, EU)
  • For Business: Joules (full year), Renewi (trade statement)

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