The pro-cyclical mini-budget is seen as counter-intuitive to international investors in the UK who must be wondering if politicians understand the ramifications of policies which have triggered a meaningful sterling crisis. Create New Watchlist Create Create a new holdings portfolio Add Create + Add another position Close Reuters) - Sterling dropped against a strengthening U.S. dollar on Tuesday, with investors closely watching economic data and market bets on the Bank of England’s future moves.

UK is rated Aa1 by Moody’s, one notch below the top triple-A score. The agency says that in the event of a Britain voting to leave the EU it will consider assigning a “negative outlook” to that rating, compared with a “stable” outlook now. Such an outlook would imply a greater chance of downgrading that rating in the future.Speaking in Vladivostok, Vladimir Putin dismissed attempts to cap the prices of oil and gas as “dumb” and “sheer nonsense”, while claiming that Russia had enough customers in Asia to ride out the damage. “Will they make political decisions contradicting contracts?” he said. “In that case, we will just halt supplies if it contradicts our economic interests. We don’t supply any gas, oil, diesel oil or coal.” Sales were expected to rise by 0.3% month-on-month in October, recovering from September's downwardly revised -1.1%, but came in at -0.3%.

There’s more from Vladimir Putin. The Russian president has threatened to cut off energy supplies to the west if price caps are imposed on Russian oil and gas exports, saying that the west would be “frozen” like a wolf’s tail in a famous Russian fairy tale, Reuters reports. Speaking at an economics forum in the Pacific city of Vladivostok, Putin said European calls for a price cap on Russian gas were “stupid” and would lead to higher global prices and economic problems in Europe. Consumption will remain weak, with higher mortgage costs next year; a gradual recovery is likely only in the second half of 2024," saysDavid Alexander Meier, an economist at Julius Baer. "With rate expectations trimmed down, the best for the pound sterling is over." Due to the scale of the gas crisis, the government’s first priority will be to support families and businesses in the immediate term, according to the Treasury’s press release. The message was another attempt by Bailey to resist the market's urge to bring forward rate cut expectations, a development that has been weighing on the Pound since August.You may also opt to downgrade to Standard Digital, a robust journalistic offering that fulfils many user’s needs. Compare Standard and Premium Digital here. Take equities first. Since January 1991 there has been a significant positive correlation (0.37 in monthly data) between annual changes in sterling's trade-weighted index and in the All-Share index. Falls in sterling are more often than not associated with falls in share prices. This was most spectacularly the case in late 2008, when then financial crisis caused shares to slump and sterling to fall as traders closed carry trades. But we've also seen the two fall together in late 1998, 2002-03 and in the summer of 2011. The forecasts included should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. Forecasts and assumptions may be affected by external economic or other factors. On the other hand, a weaker pound is bad news for those importing raw materials such as metals. Their costs go up when sterling falls. Nevertheless, upside surprises for the Pound could come from any economic growth upgrades, something that the Bank will have to deliver given the economy has outperformed the projections laid out in February.

The chancellor updated the governor on his growth and fiscal strategies, noting that reforms which create the conditions for a high-growth economy can help to alleviate inflationary pressures. He outlined the government’s plans to act this week in response to high energy prices, and reiterated that such action requires fiscal loosening in the short-term. The chancellor confirmed that over the medium-term, the government is committed to seeing debt falling. But limiting the cap to Russian gas is likely to be challenged by some EU member states. Poland argues the EU should cap the price of all non-EU gas: it fears that targeting Russia will trigger retaliation that will deprive Ukraine of lucrative pipeline transit fees. Russia is the world’s second-biggest oil exporter after Saudi Arabia, and the world’s top natural gas and wheat exporter. Europe usually gets 40% of its gas and 30% of its oil from Russia. Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Lengthy negotiations and uncertainty over UK firms’ future access to EU markets following a vote to leave in the upcoming referendum on EU membership would weigh on confidence and delay investment decisions,” the agency says in an update. “This would have a short-term economic cost, although the precise impact would be highly uncertain.”But investors aren’t impressed, concerned that the Treasury’s plans won’t come until late November. He said Russia would have not problems redirecting its gas exports to other countries, such as China. For businesses whose exports are more valuable than their imports, it is a different story. The metal stamping company Brandauer, which turned 160 years old in March, sends products such as razor blades and components for electrical devices like kettles all over the world. For cost savings, you can change your plan at any time online in the “Settings & Account” section. If you’d like to retain your premium access and save 20%, you can opt to pay annually at the end of the trial. Consumption will remain weak, with higher mortgage costs next year; a gradual recovery is likely only in the second half of 2024," says David Alexander Meier, an economist at Julius Baer. "With rate expectations trimmed down, the best for the pound sterling is over."