Pound falls to lowest since 1985, ahead of mini-budget cuts

Ggood morning.

All eyes are on Kwasi Kwarteng today as he prepares to unveil a series of tax cuts in his mini-Budget.

Economists at the Institute for Fiscal Studies have said today’s announcements will likely amount to “the biggest tax cut since Nigel Lawson’s 1988 budget.”

The Chancellor has already confirmed that the recent increase in national insurance will be scrapped from November.

Other expected measures include scrapping the planned corporate tax hike and lowering stamp duties, as well as ending the cap on banker bonuses and creating new low-tax investment zones.

There could also be more as Mr. Kwarteng is about to announce two “rabbit out of the hat” policies that have not been reported.

5 things to start your day with

1) Borrowing costs rise as Bank of England continues to sell bonds Plus: Bailey bets Truss energy bailout will save Britain from skyrocketing inflation

2) Net zero rules weakened in scramble to stimulate drilling in the North Sea Rees-Mogg weakens regulations on climate ‘checkpoints’ as part of efforts to expand production

3) Guardian director resigns in protest over chief executive’s choice of ‘imperial’ editor The appointment of current boss Anna Bateson was pushed by editor Katharine Viner

4) BT demands staff return to the office Telecom giant says new approach is “fundamental to company success”

5) Pubs are ditching cask beer for cask bubbly craft beer as landlords fear a drop in visits Hospitality sales remain well below pre-pandemic levels, a consultant suggests

What happened overnight?

Asian markets fell again on Friday as part of a global sell-off, fueled by fears of a recession, after central banks around the world raised interest rates to combat decades-long inflation.

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Manila all dropped out.

coming today

  • Economy: Mini Budget (UK), Manufacturing PMI (UK, US, EU), Services PMI (UK, US, EU), Composite PMI (UK, US, EU)
  • For Business: European Opportunities Trust, Smiths Group (annual results); Biffa, Investec (trading update)

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