UK 10-year borrowing costs hit highest level since 2008 as Rachel Reeves’ fiscal headroom evaporates – Business Live | Business

Lloyds CEO will leave this year

Julia Kolleway

It’s all change at the top lloyd’sThe world’s oldest insurance market, founded in 1688.

It today announced its chief executive john neal Will leave the company this year, after leading the company for more than six years. He will join the London-based insurance company Aeon As global CEO of Reinsurance and Global. Chairman of Climate Solutions, the date of his departure will be confirmed soon.

Indigo Led Lloyd’s – which is made up of more than 50 insurers and more than 380 brokers – through Brexit, rising interest rates and inflation, a global pandemic and geopolitical conflict such as Russia’s invasion of Ukraine.

Before joining Lloyd’s, Indigo He was forced to take a pay cut as head of Sydney-based QBE, one of the world’s largest insurers, after he failed to tell the board about his affair with his personal assistant.

Chairman of Lloyd’s, bruce carnegie-brownis also leaving after an eight-year term, and will be succeeded by Sir Charles Roxburgh On 1 May, a former McKinsey consultant and ex-permanent secretary at the Treasury, who also served as director general for financial services, where he had dealings with the insurance sector and Lloyd’s.

back in september, lloyd’s Announced an increase in pre-tax profit to £4.9 billion for the first six months of 2024, from £3.9 billion a year earlier.

However, the group has faced repeated criticism over its refusal to force its member syndicates to stop underwriting fossil fuel projects, and insurance companies operating in the market are the world’s largest lenders to oil and gas projects. Was the underwriter, the campaign group’s research has revealed fix it Our Future Got it last year.

In those days, lloyd’s It was also accused of “lacking in reparations” in response to an academic review that highlighted its “crucial role” in making the transatlantic slave trade possible.

Donald Trump is considering declaring a national economic emergency to impose sweeping tariffs, CNN reports, as the president-elect seeks to seize the Panama Canal, acquire Greenland and force Canada to become a US state. The threats have been increased.

The emergency powers move would allow Trump to impose sweeping tariff measures against both allies and adversaries through the International Economic Emergency Powers Act, according to four sources familiar with the discussions.

Sources told CNN that the emergency powers would give Trump significant leeway in creating a new tariff program without having to demonstrate traditional national security justifications. A source familiar with the matter told the network, “Nothing is off the table,” and confirmed that there have been vigorous discussions about declaring a national emergency.

IFS: Reeves’ lead could be eroded by bond sales

heather stewart

Paul Johnson, director of the Institute for Fiscal Studies, has confirmed that a bond market selloff is threatening to leave Rachel Reeves out of business – and potentially force her to make spending cuts.

Speaking to the Guardian, the yield on 10-year UK debt reached its highest level since 2008, Johnson They say:

“Broadly speaking, what has happened in bond markets since the Budget has been largely enough to close the very small gap left by Rachel Reeves.”

[this is the headroom to meet the chancellor’s fiscal rules, which include having debt falling as a share of the economy in five year’s time. In last autumn’s budget, it was just £9.9bn],

Johnson Cautioned that a number of assumptions go into office for budget accountability forecasts, so there may be other factors working in the Chancellor’s favour.

But all else being equal, bond market moves potentially point to spending cuts – given that the Treasury has reiterated its commitment to fiscal rules, and reeves In line with the OBR’s forecast, it has promised no tax rises in its spring statement.

He explains:

“The only thing that can take a toll on any of these is the number of your expenses.”

This points to trouble ahead, given that spending is already expected to be limited after 2025-26.

Johnson They say:

“The plans are already very strict, at 1.3% [increase in spending] One year, which means the best situation is on hold for most departments. Just take it below 1.3% and it feels really tough. If we get to this point, it will be a very bloody cabinet fight.

American companies kept their employees where they could during the holiday period.

The number of new ‘initial claims’ for unemployment aid fell by 10,000 to 201,000 in the week to January 4.

Economists had expected a modest increase of 214,000.

RECENT: New data shows U.S. companies added fewer workers to their payrolls last month than expected.

payroll operator ADP reported that US companies added 122,000 new employees in December, less than the 140,000 Wall Street economists had predicted.

Service companies added 112,000 Jobs were lost – half in education and health services – while goods producers added 10,000 workers.

That’s a slowdown from November, when payrolls rose by 146,000, but hardly an economic emergency.

In this richardsonchief economist A.D.PThey say:

“Labor market growth slowed in the final months of 2024, leading to a slowdown in both hiring and wage gains.

“Health care led the way in the second half of the year and created more jobs than any other sector.”