Meet Britain’s (likely) new leader
After weeks of turmoil, British politics appear to be heading for some stability, with former Chancellor of the Exchequer Rishi Sunak poised to succeed the ill-fated Liz Truss as prime minister. The British pound and government bonds rose slightly on the news, but the economic problems plaguing the country are unlikely to be resolved anytime soon.
Snacks have numbers, When 164+ Conservative MPs endorsed him for prime minister as of Monday. (Conservative party rules require a candidate to take into account at least 100 committed supporters.) The only remaining challenger, Penny Mordaunt, has about 90 committed supporters. She says she’s with But the clock is ticking. The required support threshold must be reached by 2pm London time on Monday.
Snak’s most prominent challenger was Boris Johnson. Boris Johnson is a former Prime Minister who was ousted after his Cabinet, including then-Prime Minister Snak, resigned in protest over a string of scandals. Mr Johnson withdrew from the campaign on Sunday despite claiming he had the support of 102 MPs (the BBC estimates he has 57 public supporters). There was only one).
Investors expect relative predictability from snack government. During this summer’s prime ministerial campaign, Mr Sunak defended his plan to raise taxes as financially responsible, compared to Mr Truss’ promise of tax cuts to spur economic growth. The ferocious market reaction to Mr Truss’ plan has led to a drastic move by the Bank of England to boost sovereign debt, suggesting investors prefer the less innovative approach Mr Snack promised. ing.
Investors seem particularly relieved that Mr Johnson is a particularly divisive figure both in the UK and abroad, facing a parliamentary inquiry into whether he supports him. lied to legislators About breaking Covid lockdown rules — not done.
However, the UK still faces major challenges. The Bank of England remains likely to raise interest rates to curb inflation that has reached 10%. The UK still faces a major cost of living crisis, largely due to rising energy costs. Homeowners face significantly higher mortgage payments. On Friday, Moody’s downgrade The outlook for the UK’s credit rating has changed from ‘stable’ to ‘negative’, citing weak growth and ‘unpredictability’ in policymaking.
Sunak also needs to corral the Conservative Party, which has split into several rival factions. The far-right MP favors a crackdown on immigration and his hardline stance on the EU over inspections of goods crossing the trade border between Northern Ireland and Ireland.he may also face Rebellion from Johnson supporters Those who blame him for the former Prime Minister’s downfall.
this is what is happening
Tesla cuts prices of major models in China. Electric car makers have cut baseline prices for the Model 3 and Model Y. 9 percent, reports Reuters. The move appears to be linked to slowing demand in China, the world’s largest EV market, and increasing competition from domestic rivals.
The Trump family’s business will go on trial on Monday. The Manhattan District Attorney’s Office has accused the Trump Organization of tax evasion and other crimes, focusing on the executive’s undeclared perks. Weisselberg included.
Japan is struggling to support the yen. currency continued to fall against the dollar Japan maintained ultra-low interest rates that could boost the yen to spur economic growth, despite what investors suspect is another intervention by the Bank of England to curb volatility. I’m in a difficult situation because I’m trying.
Semiconductor makers are struggling with tougher U.S. regulations against China. China’s YMTC reportedly asked American employees He is stepping down from a key role to comply with new rules from Washington that require U.S. citizens to obtain permission to work in Chinese manufacturing plants.When Taiwan’s TSMC allegedly halted operations A fast-growing Chinese semiconductor start-up.
Be prepared for a potential “triple demic” this year. Pandemic lockdowns are all but a thing of the past, but experts predict a resurgence of Covid cases this winter, along with more traditional flu outbreaks and possibly respiratory syncytial virus outbreaks. It’s going to be a harsh winter,” an infectious disease expert told The Times.
“Even more dominant” Xi
China released its third-quarter economic data on Monday, revealing the serious challenges facing China just days after Xi Jinping was appointed to an unprecedented third term as leader.
Gross domestic product of the world’s second largest economy increased by 3.9% compared to the same period last year. This is higher than expected, but falls short of the annual target of 5.5%. Officials unexpectedly delayed releasing the data last week.
Financial markets fell. Hong Kong’s Hang Seng Index closed down more than 6% on Monday at a 14-year low. US-listed Chinese tech stocks are the worst performers in the market, led by e-commerce firms His Pinduoduo and His JD.com.
Xi’s move to tighten control was widely anticipated, but he underscored his ambition to accelerate China’s rise as a military and technological superpower despite the potential economic damage. The Times reports that it does. It can have a big impact on your business.
“He was already dominant and now he’s even more dominant.” Dali Yang, professor of political science at the University of Chicago, said of Xi Jinping: A newly energized Beijing is likely to remain defiant even in the face of international criticism for its hardline actions. We want to assert our claims against Taiwan. At the meeting, Xi said China will pursue its own initiatives to solve global development and security problems.
Uncontrolled power can slow economic growth. Xi’s extremely draconian approach to imposing massive lockdowns and quarantines to eradicate the Covid-19 outbreak has curbed consumer spending and hit supply chains.Very important real estate market has also been in a slump after he tried to curb speculation in the sector.
The geopolitical disparity between the United States and China is widening. President Biden has cracked down on China’s access to US technology, especially chips and chip production, and the threat of economic sanctions like Russia’s is looming. Some of the big Western companies are now looking at ways to scale back their operations in China. But Goldman Sachs hasn’t closed the door. on monday, announced A joint venture in China to facilitate investment in local infrastructure-related real estate assets.
Detractor Comes After SBF For His Stance On Crypto Rules
Sam Bankman-Fried, founder of crypto exchange FTX, was skewered by his crypto colleagues after making a spontaneous proposal. digital asset standards Last week, to better protect consumers. written by a billionaire In response to petitioners accusing him on Twitter on Sunday,SBF — Regulator“
Industry insiders wary of SBF The 30-year-old billionaire, head of a vast global empire built mostly out of reach of U.S. regulators, has donated about $40 million Endorsed by various PACs and candidates in the 2022 election cycle, it will become a regular on the Capitol.Among the proponents of decentralized finance is the high-profile Bankman-Fried New Senate Agriculture Committee Bill On digital assets they feel could set back the DeFi movement.
Bankman-Fried also went wild for suggesting DeFi adopt a “know your customer” mandate to appease authorities. Opponents say this will undermine the spirit of decentralized crypto and force DeFi companies to adopt rules related to traditional finance. Voices are calling for a boycott of FTX.
After the onslaught, crypto executives relented. SBF thanked the critics for their input and revised some of the suggestions. One of his most prominent figures is Erik Vorhees, founder of libertarian-leaning platform ShapeShift, who argued that DeFi should distance itself from regulatory oversight.Transcending Humans and Their Political Conspiracies“
“The devil is in the details” Kristin Smith, executive director of the Blockchain Association, an industry group representing about 100 companies, told DealBook. The industry agrees that centralized exchanges are ready for regulation, but DeFi is new and nuanced, and regulation in the area will take longer, she said. . Translation: SBF should stop talking about DeFi.
Bankman-Fried believes congressional action is coming. “It’s important to protect our customers and get federal oversight,” he wrote in an email to DealBook, adding that it’s equally important that the code remains free. After the November election, he predicted there was still “some chance” that a narrow crypto bill that would leave DeFi untouched would get congressional approval. I’m watching!), so I think it makes sense to pass this year.”
“This is a moment of truth for education. How we respond to it will determine not only our recovery, but our place in the world.”
— Miguel Cardonathe education secretary warns that the pandemic-induced decline in U.S. students’ math and reading skills will have deeper economic and social implications.
one week before
What are your plans for this week? In addition to Europe’s big banks, US big tech is also making interest rate-setting decisions and releasing economic data.
Tuesday: Saudi Arabia-sponsored ‘Davos in the Desert’ begins. Many U.S. officials plan to attend, despite tensions rising between Saudi Arabia and the United States over oil.
Wednesday: Meta reports earnings. Weak advertising and new privacy rules from Apple (reported on Thursday) are expected to dent revenue in the second quarter for the first time since the company went public.
Thursday: Credit Suisse presents plans to fix itself. A broad strategic review will take place, culminating in restructuring likely to include thousands of job cuts and an overhaul of the investment bank. Elsewhere: US reports third quarter GDP and it’s European Central Bank interest rate decision day.
Friday: Closing date for Elon Musk and his $44 billion Twitter deal. Last week, The Washington Post reported that he plans to cut Twitter’s staff by up to 75% after taking the company private. In Asia, the Bank of Japan has ended his two-day interest rate-setting meeting and no policy changes are expected.
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