The Biden administration is alarmed over the market turmoil triggered by the new UK government’s economic program and is seeking ways to encourage Prime Minister Liz Truss’s team to dial back its dramatic tax cuts
Big news: hearing from several sources in the UK that some pension funds are quickly becoming insolvent due to huge margin calls they can’t meet.
The massive move in 30y UK swaps and bonds coupled with risk assets tanking behind the problem.
That “explains” the BoE action.
BoE warns of risk to UK financial stability as it intervenes in bond market. Emergency action follows sell-off in UK govt bonds. Gilts rallied. UK 30y yields, which earlier touched 20y high >5%, fell by 0.75ppts to 4.3%, biggest daily drop in yields ever.
⚡️The Times: Russia likely bombed Nord Stream pipeline with an underwater drone.
An alleged Russian sabotage attack on the Nord Stream gas pipelines that caused large blasts in the Baltic Sea was “probably premeditated and planned for,” the Times said citing a UK defense source.
Spare a thought for the new Trade Secretary Kemi Badenoch on board HMS Queen Elizabeth in New York Harbour as she delivers a keynote speech today telling an "audience of US investors why the UK is the best place in the world to invest".
The UK is "a G-7 economy that is behaving like a developing country, including getting a reprimand from the IMF," says economist Mohamed El-Erian
He says the BOE now needs to hike rates by a full point before its next meeting to stabilise the situation