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Briton’s weak Truss faces struggle for credibility By Reuters

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© Reuters. FILE PHOTO: British Prime Minister Liz Truss attends the annual Conservative Party conference in Birmingham, Britain, on October 2, 2022. REUTERS/Hannah McKay

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By Elizabeth Piper, Andrew McCaskill and Alistair Smoot

BIRMINGHAM, England (Reuters) – British Prime Minister Liz Truss had hoped the ruling Conservative Party’s annual conference would be her coronation, but was instead forced into a humiliating turn that left her and her team fighting for credibility.

After less than a month on the job, Truss’ reversal on Monday of a decision to scrap Britain’s highest rate of income tax has led to criticism that she was not only given bad advice, but was poorly advertised as a woman who sticks to her word. .

The shift came less than 24 hours after Truss defended a policy to cut the top tax rate by 45%, which has prompted warnings from lawmakers that she risks losing any future elections by reviving the “bad party” moniker.

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Truss, in Birmingham this week with other Conservative MPs for the party’s annual conference, said she and her finance minister Kwasi Quarting had heard those voices. But some at the conference questioned whether it could now control future policy challenges ahead of elections scheduled for 2024.

“Would I have done that? Certainly not,” said Ben Huchen, mayor of Tees Valley in north-east England.

“In fact, it brought us back to many people’s minds on the journey that the Conservatives have taken in the past 15-20 years,” he said, referring to 2002 when Theresa May, who later became prime minister, said the party was known from Many voters accepted it as the “bad party”.

With opinion polls for the Conservatives in danger of being crushed in the upcoming election by the main opposition Labor Party, others have been more vocal, directing criticism of her cabinet team of senior ministers, or her advisers.

“It was inevitable. But it … underscores the need for senior officials around the cabinet table,” said a Tory lawmaker, who asked not to be identified.

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Another said: “It’s a new team that doesn’t know what they’re doing and doesn’t allow for efficient management of Downing Street, let alone anything too daring or out of the ordinary.”

Keeping promises?

It’s been a long way since some hailed Truss as a Conservative leader, the party had to draw a line under Boris Johnson, who was ousted in a rebellion after presiding over months of scandal.

Then she told the party members, who were tasked with choosing the next British Prime Minister: “I make no promises which I cannot keep, and I am an outspoken person who says them as they are.”

Appointed on September 6, she was quickly forced to change course to help lead Britain into national mourning for Queen Elizabeth and when political life returned, she wanted to move quickly. The tax rate cut was a surprise entry into her economic plan on September 23.

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“It’s a hard message to sell,” said Marco Longi, a Conservative MP who was elected in 2019 for the first time in Dudley North, a former Labor supporter.

“I think a large number of people in my area have found it difficult to digest that message,” said Longy, who supported Truss for prime minister during the leadership campaign.

At the conference, some supporters and lawmakers seemed puzzled by the pace of events, while others were frustrated.

Some said a reversal is inevitable.

But while its ministers publicly rallied around Truss and Quarting, there was clear frustration that a raft of measures intended to reverse years of stagnant economic growth had been fatally undermined.

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Steve Baker, a minister in the Northern Ireland office, said he blamed Labor for setting a “political trap” for the Conservatives 12 years ago by introducing a high tax rate – a trap that previous governments should have removed much earlier to avoid “entering ourselves”. Today’s problem.

“I am delighted that Kwasi (Quarting) did that,” Baker told Reuters.

“A lot of MPs (Members of Parliament) would satisfy them but what we need now is for every Tory MP to ask themselves what they are trying to achieve. I am clear what I am trying to achieve, I would like to support a program that seeks growth” .

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Indonesian household spending stabilized, and investment picked up in the fourth quarter

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© Reuters. Indonesian Finance Minister Sri Mulyani Indrawati speaks during the launch of the Pandemic Fund, ahead of the G20 summit in Nusa Dua, Bali, Indonesia, November 13, 2022. REUTERS/Willi Kurniawan

JAKARTA (Reuters) – Indonesian Finance Minister Sri Mulyani Indrawati said on Thursday that Indonesian household spending is likely to remain stable in the fourth quarter of the year, while investment is likely to pick up.

Sri Mulyani told a press conference that for the whole of 2022, GDP is expected to expand in a range of 5% to 5.3%. Indonesia’s economic growth in 2021 was 3.7%.

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FirstFT: Brussels claims stake in London derivatives clearinghouse

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good morning. This article is an in situ version of our site FirstFT the news. Subscribe to our site AsiaAnd the Europe/Africa or The Americas A release to send straight to your inbox every weekday morning

The European Union will demand it Derivatives traders use accounts in block clearinghouses Some of their transactions are part of plans to grab a share of the €115tn market processed through the City of London.

Officials familiar with the proposals said banks handling large volumes of contracts deemed “systematic” by regulators would have to clear a minimum amount of business using active accounts in EU clearinghouses.

The plans are part of a package aimed at boosting capital markets in Europe and reducing dependence on the UK’s financial services sector after Brexit. The European Commission plans to outline the measures next month when it publishes the proposals.

“It’s a very active policy in the EU to bring business back to the eurozone. They want to control where that happens” – Karel Laneau, CEO of the European think tank CEPS

Most global interest rate swaps are processed in London in clearing houses that have not moved since Brexit. EU politicians are unhappy with dealing with euro-denominated derivatives in a market outside the direct supervision of their regulators.

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What is your reaction to the plans? Let me know at firstft@ft.com. Thank you for reading FirstFT Europe/Africa. – Jennifer

1. UK businessmen and unions attack EU rules Prime Minister Rishi Sunak is under pressure from an alliance of business, legal, labor and environmental groups to Drop plans to automatically strip EU-derived laws From the book Statutes of Britain by the end of next year. Brexiteers argued that the process would provide a “productivity boost” to the UK economy.

Thank you to everyone who participated in yesterday’s survey. 59 percent of the respondents agreed that EU plan to reduce gas prices To avoid a repeat of rising energy costs it was “a no-ceiling joke”.

2. Most Fed officials support slower rate hikes “soon” The return of a “significant majority” of US Federal Reserve officials A slowdown in the rate of interest rates Soon, while some warned against tightening monetary policy more than expected next year, according to the report of their last meeting. In the US and European stock markets, some of the world’s largest asset managers She remains unconvinced that the recent recovery will last.

3. Disney awarded Iger a $10 million consulting deal to advise the CEO Bob Iger on a $10 million deal to advise his successor Bob Chapek even though the two executives were hardly on speaking terms. Iger returned to Disney this week as CEO after ousting his heir-chosen entanglement in an internal revolution.

4. Spaces of Ukraine were left without electricity Russia Dozens of missiles were fired Yesterday, swathes of the country and more than half of neighboring Moldova were left without electricity, in Moscow’s latest attempt to cripple civilian infrastructure.

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5. Yandex is seeking Vladimir Putin’s approval to restructure The company is often described as “Google’s Russia”. She seeks the president’s blessing to sell her operations In the country, he decoupled its major international projects and appointed a longtime Putin confidant to manage its relationship with the Kremlin.

Join the top Financial Times journalists In conversations with leaders in business and government including Jens Stoltenberg, Secretary General of NATO, Roland Bosch, CEO of Siemens and more at The Global Boardroom on December 7-9. Register here for free to get your digital card.

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UK postal workers strike The Withdrawal due to working conditions It will be the first of several in the run-up to Christmas. The Communications Workers’ Union claimed last week that Royal Mail had pulled out of negotiations after making a “take it or leave it” offer to employees.

central banks Sweden’s Riksbank announces its latest interest rate decision. Analysts predict that high inflation will prompt policy makers to take a more hawkish stance. ING forecast an increase of 75 basis points, with a final rise of 50 basis points in February. Elsewhere, the European Central Bank publishes a report for its latest monetary policy meeting. South Africa also holds its monthly rate-setting meeting, while in Turkey, policymakers are expected to hold it Continue the interest rate cut line.

Corporate earnings The Ingka Group, which owns most of the Ikea stores worldwide, gives full-year figures including profits for the home furnishing retailer. Other companies reporting include Dr. Martens, Jet2, and Rémy Cointreau, while Kingfisher provides a third-quarter trading update.

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world Cup The match between Brazil and Serbia kicks off. Neymar, 30, may have it Last chance to win the sixth World Cup for Brazil. He has already posted a photo on Instagram of the state’s coat of arms bearing the sixth star. Switzerland also faces Cameroon, while Uruguay faces South Korea head-on.

Neymar
At 30, Neymar is a different footballer than the poor kid from the coastal city of Santos who appeared a decade ago © FT montage; AFP/Getty

Thanksgiving US stock and bond markets are closed for the national holiday, which is usually plagued by travel chaos and road jams. this year More than 54 million people It is estimated that you will travel 50 miles or more to visit loved ones, according to the American Aeronautical Association. (CNN)

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How magical thinking enabled the ups and downs of FTX Since the cryptocurrency exchange imploded this month, it has become clear that the concentration of power, coupled with a lack of oversight, has caused huge losses for customers because the money has been funneled without any accountability. Gillian Tate reflects The deep contradictions of the sector.

How to gamble £600 million in public money If your job is to maximize the amount of money that goes to good causes, then gambling hundreds of millions of pounds if you are able to make a little more profit over 10 years seems risky. That’s what the UK Gambling Commission did when it rejected the National Lottery’s Camelot application for a new licence, writes Kat RotterPoley. But maybe it wasn’t such a bad bet after all.

The struggle over the future of the Catholic Church The question of who will succeed Pope Francis, who turns 86 next month, looms large. The Pope is not endearing to progressive Catholics, whose approach to issues such as homosexuality is very cautious. However, it is considered more reformist. Tony Barber asks, What does the future hold for the church??

Ireland’s millionaire homeowners lie inequality at bay Who wants to be a millionaire? In Ireland, where household net worth is at a record high, one in eight households already is — on paper, at least. Housing accounts for a large proportion of this increase for the richest 10 percent. this means It is becoming more difficult for the next generation to own a home. Judd Webber explores.

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How do you disagree with your boss? Last week, Elon Musk reportedly fired about a dozen engineers after they publicly opposed him. It’s an extreme example of what can happen when you disagree with your boss. You will almost certainly disagree with your manager at some point in your career. This week’s Work It newsletter discusses How should you tell them.

Travel

Guyana is the next hot spot for adventure-seeking travelers. But deep in the woods, just upriver from a thunderous waterfall in a sinking boat, Jimmy Lafferty got more than he ever expected.

The view from the top of Camarang Falls
The view from the top of Camarang Falls © Jamie Lafferty

Thank you for reading and remembering that you can Add FirstFT to myFT. You can also choose to receive a FirstFT push notification every morning on the app. Send your recommendations and feedback to firstft@ft.com

Climate chart: an explanation – Learn about the most important weather data for the week. Participation over here

Long story short – The biggest and best-read stories in one smart email. Participation over here


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Asian stocks rise on signs of US Fed slowdown and China stimulus By Reuters

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© Reuters. FILE PHOTO: People walk past an electrical panel showing the average share of Japan’s Nikkei Stock Average in Tokyo, Japan, September 14, 2022. REUTERS/Isei Kato

Written by Stella Keough

SYDNEY (Reuters) – Asian stocks followed Wall Street higher on Thursday, bolstered by signs the US Federal Reserve may slow the pace of interest rate hikes and news of fresh economic stimulus from China, with the dollar failing to recoup losses.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8% in early trade, supported by a 0.6% gain in South Korean stocks, a 0.5% increase in China, and a 0.9% jump in Hong Kong.

jumped 1.3%.

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rose 0.2%, while Nasdaq futures rose 0.3%, after modest gains in US stocks on Wednesday.

On Thursday, the Bank of Korea slowed the pace of tightening to a more modest 25 basis points, joining other central banks turning away from huge hikes amid a looming global recession.

Minutes of the US Federal Reserve’s latest meeting also showed that a “large majority” of Fed policy makers agreed that it was “probably appropriate soon” to slow the pace of rate hikes.

“Overall, it is clear from the minutes that FOMC participants are determined to increase the policy rate in the face of an extremely tight labor market and unacceptably high inflation,” analysts said. Barclays (color :).

“However, the minutes also reveal an emerging difference in views among members about the peak rate, and uncertainty about the peak rate.”

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The futures market indicates a 76% chance of a 50bp rise to 4.25%-4.5% at the December meeting, while the majority of investors expect the Fed’s target rate to be above 5% by next May.

US economic data on Wednesday showed that jobless claims increased more than expected last week, while business activity contracted for a fifth month in November.

In Japan, data on Thursday showed manufacturing activity contracted at the fastest pace in two years in November.

Meanwhile, in China, COVID cases have continued to rise, with economic losses from movement restrictions and lockdowns piling up.

China’s cabinet on Wednesday signaled the possibility of an upcoming cut in the reserve requirement ratio for banks, pledging new stimulus measures to revive its coronavirus-hit economy.

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On Thursday, the US dollar failed to recoup its overnight losses of 1%, with the index settling at 105.89 against a basket of currencies. [FRX/]

In the oil market, prices are set to test a key support level from September, which if breached could see oil drop to levels not seen before late 2021, adding to evidence that inflation is likely starting to ease.

Oil futures fell 0.2% to $77.79 a barrel, after falling more than 3% on Wednesday, as the Group of Seven (G7) countries considered a ceiling on the price of Russian oil above the current market level. [O/R]

Futures fell 0.15% to $85.26.

In the bond market, long-term US Treasury bonds rebounded overnight after the Fed’s meeting minutes. 10-year yields fell to a whopping 79 basis points shortfall to two-year yields, a curve reversal on a scale not seen since the dot.com crash of 2000 and, on the face of it, a sign investors expect a deep economic contraction in the coming months.

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US markets are closed for the Thanksgiving holiday on Thursday.

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