FirstFT: Sunak to set fiscal rules to curb UK borrowing


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British Chancellor Rishi Sunak plans to use next month’s budget to set rules to curb government borrowing as the Treasury fears a hike in interest rates could put a dent in indebted public finances.

Sunak’s new rules commit him to stop borrowing to finance daily expenses within three years – a move meant to exemplify conservative fiscal discipline ahead of the next election. While the government’s current spending plans play by the rules, they leave little room for extra giveaways to show in the budget.

Sunak’s fiscal rules will also require the underlying debt to start falling by 2024-25, according to people briefed on the Chancellor’s thinking. Today it represents around 100% of gross domestic product.

Inflation in the UK in August hit 3.2%, its highest level since 2012, and although the Bank of England believes the rise is manageable and temporary, Sunak is watching it closely.

How concerned are you about the prospect of rising inflation and why? Write to me at [email protected]. Thanks for reading and here’s the rest of today’s news – Jennifer

Five other articles in the news

1. The unpublished ECB inflation estimate raises the prospect of an earlier rate hike The European Central Bank expects to hit its elusive 2% inflation target by 2025, according to unpublished internal models that suggest it is on track to raise interest rates in just over two weeks. years.

2. The United States tries to appease the anger of the French Antony Blinken, US Secretary of State, said France remains a “vital partner” in trying to calm the fury in Paris, whose lucrative submarine contract with Australia was canceled as a result of the Pact of United States naval security with Canberra and London.

  • Read on: Beijing condemned the deal, accusing the three countries of having an “outdated zero-sum cold war mentality.” However, the partnership has been hailed as a boost for Britain’s post-Brexit Global Britain program.

3. World Bank Survey Finds IMF Chief Pushed Staff To Improve China’s Ranking IMF Managing Director Kristalina Georgieva has been accused by a World Bank investigation of leading efforts to artificially raise China’s ranking in the lender’s influential annual Doing Business report.

4. Murdoch’s media empire to launch British TV channel News UK has said talkTV will bring Piers Morgan back to screens as a presenter, threatening to further disrupt the fast-paced broadcasting industry.

5. MassMutual fined for trading ‘Roaring Kitty’ meme shares US insurer fined $ 4 million for failing to properly supervise Keith Gill, a former employee whose videos under pseudonyms such as “Roaring Kitty” have encouraged millions of day traders to increase stocks from GameStop.

Thanks to all of the readers who voted in yesterday’s poll. Forty-five percent of you disagreed with Cathie Wood of Ark Invest, who predicted that the price of bitcoin would increase tenfold in five years.

Coronavirus digest

  • Analysts forecast revenue of Pfizer and Moderna Vaccines against Covid-19 will be publication date precipitously by 2024.

  • retail sales in the United States rebounded in August as shoppers stocked up on school supplies and home decor as a sign of their willingness to spend.

  • The White House Free rapper Nicki Minaj a conversation with a doctor to answer her questions about vaccine safety after she publicly questioned the vaccines. (FT, NYT)

The coming days

Manchester United wins The team is releasing its annual results today, including its financial outlook for the coming year. Investors will be looking for details of his successful deal for Cristiano Ronaldo, as well as how quickly the club could return to growth after the pandemic.

EU inflation data Earlier this week, Eurostat reported that euro area wages fell for the first time since 2011 in the three months to June compared to a year ago. This report allayed fears ahead of the release of today’s inflation data.

FDA Panel on Pfizer Boosters A panel of experts will meet to give the US drug regulator an official recommendation on whether to authorize the application of the company’s recall jabs.

Meeting of the Major Economies Energy and Climate Forum President Joe Biden will pressure other countries to join the United States, as well as the EU, by pledging to reduce methane pollution by 30% over the next decade.

  • More international conferences: Mark Rutte, the Dutch Prime Minister, will meet Boris Johnson, his British counterpart, in London on the same day to discuss how Britain could work more closely with the EU on defense and security.

Lib Dem Party Conference The rallies virtually begin and end on Sunday, when Leader Sir Ed Davey will use his in-person conference speech to position the party as an unambiguous anti-Conservative force, vowing he would never help put Boris Johnson back in Downing Street .

The Duma elections in Russia The pro-Kremlin United Russia Party is expected to retain its majority in the lower house of parliament after Sunday’s election.

What else we read and watch

Did Occupy Wall Street Mean Anything? Triggered by predatory home loans and excessive risk-taking, the financial crisis of 2007-2008 led to debt crises, mass layoffs and repossession of homes. It also gave rise to protests around the world. Here is a preview the legacy of the movement, 10 years later.

A trio of Occupy images using the bull as a symbol of corporate greed

Looking at the little-known origins of Occupy, we begin to see the great opening of a deep anger that still resonates today © Alexandra Clotfelter; Roger Peet; Adbusters

How Labor lost its grip on the “red wall” Post-industrial England is turning blue. The transformation after the Tories’ victory in 2019 was initially linked to Brexit and the unpopularity of then-leader Jeremy Corbyn. But Sebastian Payne feels a deeper change beyond these factors.

The East-West division persists East Germany still exists in people’s minds. Its residents, known as Osis, are expected to vote in the September 26 elections more drastically than Westerners. In retrospect, this discontent arose almost immediately after the fall of the wall, writes Simon Kuper.

Festivals: a high-risk business Music events were already a precarious business, but after a banner year in 2019, the pandemic brought an end to outdoor events. In this film, the FT talks with organizers, groups and stagehands to see if they can bounce back.

Video: Music festivals: a high risk business | FT Film

The biggest financial mistakes of the FT editors From bad interest rates on cards and hire purchase contracts, to living well without checking costs, our experts Explain how they learned the hard way – as part of our financial literacy and inclusion campaign.

Fashion

Elizabeth Holmes, the founder of Theranos, has adopted a gentler persona, “everyone” now that she faces a criminal trial in California for misleading investors and patients about the accuracy of the statements. finger-prick testing of his company. Did that turn the power polo into a toxic turtleneck?

Elizabeth Holmes shows up in court in a white blouse instead of her signature black polo collar

For the court, Holmes swapped his signature black polo collar for a white blouse © Nick Otto / AFP via Getty Images

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