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Public borrowing in the UK rose less than expected

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UK public sector borrowing rose less-than-expected last month, despite government measures to protect households and businesses from higher energy prices.

Public sector net borrowing was 13.5 billion pounds in October, up 4.4 billion pounds from the same month last year and the fourth-highest number of borrowing in October since monthly records began in 1993, according to data published by the Office for National Statistics on Tuesday.

However, the figure was far less than the £22 billion expected by economists polled by Reuters.

Central government spending was £76.8 billion in October, up £6.5 billion from the same month last year. But central government tax revenues of £51.7bn, £2.5bn more than in October last year, helped reduce borrowing.

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In October, government measures such as the Energy Bill Subsidy Scheme, Energy Price Guarantee and Energy Bill Relief Scheme came into effect to help businesses and consumers with higher energy costs.

Last week, the Office for Budget Responsibility, the UK’s financial watchdog, predicted that UK public debt – or borrowing accumulated over time – would rise to a 63-year high of 97.6 per cent of GDP in 2025-26 due to more from pounds sterling. 100 billion in additional financial support over the next two years to mitigate the impact of high energy prices.

“It is right for the government to increase borrowing to support millions of businesses and households throughout the pandemic, and the aftershocks of Putin’s illegal invasion of Ukraine,” said British chancellor Jeremy Hunt.

Despite government support, the Balance Sheet office predicts a recession that will last more than a year and wipe out the past eight years of growth in living standards.

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Economic

US Federal Reserve proposes plan for banks to manage climate-related financial risks By Reuters

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© Reuters. FILE PHOTO: An eagle graces the facade of the US Federal Reserve Building in Washington, July 31, 2013. REUTERS/Jonathan Ernst

Written by Chris Prentice

WASHINGTON (Reuters) – The U.S. Federal Reserve on Friday joined other major bank regulators in proposing a plan for how big banks can manage climate-related financial risks, drawing immediate opposition from one member and reservations from another.

The proposed principles detail the expectations for banks with more than $100 billion in assets to incorporate climate-related financial risks into their strategic planning. The proposal was approved for public comment in a 6-1 vote of the Fed’s Board of Governors.

The proposal marks the latest effort by US policymakers to prepare for potential financial risks from climate change, bringing the Fed into line with the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), which have separately proposed their own plans.

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The potential impacts of climate change — rising sea levels, worsening floods and fires, and government policies moving away from carbon-heavy industries — could destroy trillions of dollars in assets worldwide.

The Fed said these financial implications “constitute an emerging risk to the integrity and integrity of financial institutions and to the financial stability of the United States.”

The Fed’s plan requires banks to consider climate-related financial risks in their audits, manage other risks, and add climate-related scenario analysis to the traditional stress test. The report suggested that banks should also assess and consider whether they should include climate-related risks in their liquidity reserves.

The debate over the extent of financial system risks posed by climate change has been politically charged. Federal Reserve Governor Christopher Waller opposed Friday’s proposal, raising the question of whether it represented a serious risk to the safety of large banks or financial stability in the United States.

“Climate change is real, but I do not agree with the premise that it poses a serious risk to the safety and integrity of major banks and the financial stability of the United States,” Waller said in a statement released alongside the proposal. “The Fed conducts regular stress tests on large banks that deliver very severe macroeconomic shocks and show that banks are resilient.”

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Gov. Michele Bowman endorsed the plan for public input with reservations, noting that the board should consider the “costs and benefits of any new projections.”

The proposal will be open to public comment for 60 days.

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More than 1,000 New York Times union employees plan to quit over payroll, reports Reuters

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© Reuters. FILE PHOTO: The New York Times Building in Manhattan, New York, US, August 3, 2020. REUTERS/Shannon Stapleton/File Photo

(Reuters) – More than 1,000 unionized employees of The New York Times Company have pledged to quit if the news publisher does not agree to a “full and fair contract” by Dec. 8, according to a union tweet on Friday.

The New York Times NewsGuild sought “inflationary” wages as well as preserving and enhancing health insurance and retirement benefits promised during employment, according to a letter signed by 1,036 members.

“We will be out and about for 24 hours, Thursday, December 8th, if we do not have a full and fair contract agreement in place by then,” the letter said.

Union members are also asking for flexibility to work remotely, among other demands.

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A spokesperson for The New York Times said “While we are disappointed that NewsGuild is threatening to strike, we stand ready to ensure The Times continues to serve our readers without interruption,” adding that the company’s current pay offer offered “significant increases.”

Earlier in March, a group of nearly 600 tech employees at The New York Times voted to unionize as the company faced allegations that it illegally interfered with organizing work.

In August, approximately 300 Thomson Reuters (NYSE: Corp) journalists in the US, represented by the same NewsGuild, also staged a 24-hour strike while the union negotiated a new three-year contract with the company.

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Mexico and the United States plan to promote by early 2023 to attract companies from abroad (Reuters).

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© Reuters. Mexico’s Economy Minister Raquel Buenrostro smiles during an event with business union representatives to discuss goals for the “Black Friday” shopping season in Mexico City, Mexico, October 19, 2022. REUTERS/Edgard Garrido

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MEXICO CITY (Reuters) – Mexican Economy Minister Raquel Buenrostro and U.S. Commerce Secretary Gina Raimondo agreed on Friday to put together a plan by early 2023 to move companies from Asia to North America, the government said.

In her first visit to Washington since taking office in October, Buenrostro met this week with senior US officials to discuss shared trade concerns, as well as efforts to attract companies from Asia.

Buenrostro’s ministry said she and Raimundo spoke on Friday about strengthening supply chains, particularly printed circuit boards and semiconductors, and they agreed on how important energy, food and national security are to economic development.

The ministry said in a statement that the two countries will work to submit a joint offer during the first two months of 2023 to the private sector on the economic and financial benefits that their countries offer companies to transfer.

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This summer, the US government approved legislation known as the Chip Act that will provide more than $52 billion to boost semiconductor manufacturing capacity in the US.

Buenrostro on Thursday discussed efforts to resolve a bilateral dispute over Mexico’s energy policies with US Trade Representative Catherine Taye. Tai also stressed the importance of avoiding disruptions to US corn exports to Mexico.

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