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@BloombergUK
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Britain is in a self-inflicted crisis that has been years in the making.
How the chaos that followed the mini-budget is also a culmination of the shift in the view of the UK in the past decade, taking in Brexit, dubious claims and attacks on institutions
Last week, the BOE faced a nightmare scenario it had long feared, and officials had to work through the night to invent a tool they had known for years was needed
Here's how the BOE finally embraced the role of a market-maker of last resort
@PhilAldrick
EXCLUSIVE: The UK Treasury is set to transfer more than £11 billion to the Bank of England to cover projected losses in its bond-buying program w/
@PhilAldrick
and Tuhin Kar
It’s been a nightmare week for UK assets after the government’s so-called mini-budget put the country’s financial credibility in question. But the reaction has been about far more than the turmoil on trading floors
The Bank of England’s mammoth government bond holdings become a drain on UK public finances for the first time, costing taxpayers £156 million
w/
@PhilAldrick
Traders have already forced Truss to dump much of her fiscal plan, and even her Chancellor.
In just a few hours, markets reopen and it all starts again.
As the story says, rarely has a developed economy’s political fortune been so in thrall to the verdict of investors…
@Samfr
This is how quickly those loses can mount. Total BOE holdings bought under QE were £200b in the red on Monday (market value vs the amount they paid) They won't realize all that loss of course, but the numbers are huge.
There was, it is fair to say, a lot on when this story came out last night, so reposting again now.
The problem of plugging the multi-billion pound losses of the BOE's QE plan with taxpayers' cash will be a problem for whoever is in government over the next few years.
EXCLUSIVE: The UK Treasury is set to transfer more than £11 billion to the Bank of England to cover projected losses in its bond-buying program w/
@PhilAldrick
and Tuhin Kar
One number that is in there is £65 billion, the amount the BOE *signalled* it was prepared to spend on bond purchases by Oct. 14 if necessary.
To reiterate, the actual intervention has only been £3.6 billion so far, and the final amount is likely to be well short of £65b
THREAD 1/ Some of the world’s biggest central banks are taking baby steps on the path away from easy money despite uncertain inflation outlooks that suggest they need to tread more carefully Story with
@endacurran
The ONS have removed digital cameras, alcopops and some CDs from the inflation basket. University students of the 2000s are no longer statistically significant...
via
@technology
The Brexit-inspired decline in London’s property values has yet to cause any serious ripples in other areas of the U.K. As one agent put it to me and
@lucy_meakin
“It’s a different world from London in the north,”
via
@business
The 49ers and Chiefs both decided to upgrade from Alex Smith, and now they're facing off in the Super Bowl. At the quarterback position,
@ChrisWesseling
explains, the old adage rings true: Fortune favors the bold.
"It's totally her fault" — Liz Truss and her government are behaving irresponsibly with their economic policy,
@PIIE
President
@adamposen
tells
@davidmmerritt
and
@flacqua
on In the City
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@lucy_meakin
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The unforeseen perils of going on holiday with a mathematician. The hours spent wandering around a habour trying to find the most mathematically interesting boats.
As we enter 2021, how are people across the world feeling about the outlook. Here's a quick thread, based on findings from an
@YouGov
survey of more than 22,000 people.