Rachel Reeves 'set to ape Thatcher with bank regulation bonfire'
She will urge bank bosses to keep staff in the UK rather than moving to New York or Paris.
Post-Brexit London has seen an exodus of financial services workers, with consultancy firm EY finding that more than 7000 jobs had moved from the UK to the EU in 2022.
A Treasury source told The Sun on Sunday: 'Millions of Brits work in financial services, but for too long red tape and excessive regulation has choked off innovation and growth in the economy.
'Well, no more. Britain is entering a new era. We will slash regulation and make the UK the best place in the world to do business.
'Forget Paris, New York and Frankfurt – come to London, Leeds and Edinburgh.
'Rachel is determined to create a new Big Bang which will turbocharge growth in the economy for a new generation to put more pounds in people's pockets.'
READ MORE: No need to wait for UK. Scotland can launch its own form of wealth tax
The Chancellor is under immense pressure after her failure to turn around the flagging UK economy.
Growth fell in May for the second month running and the Office for Budget Responsibility last week set out a bleak picture of the public finances.
She will tell City grandees on Tuesday that bankers can be assured of 'higher wages and higher living standards', The Guardian reports.
Elsewhere, the Bank of England is likely to cut interest rates, in news that will be welcome for people with mortgages, but only if there the Government's National Insurance hike continues to prevent firms from hiring new workers and making redundancies.
Governor Andrew Bailey told The Times there was 'consistent' evidence of businesses 'adjusting employment' because of Labour's jobs tax, adding that he believed 'path is downward' for interest rates, which currently stand at 4.25%.
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Reuters
32 minutes ago
- Reuters
Tariff 'doom loop' hangs over global equities
ORLANDO, Florida, July 15 (Reuters) - The astonishing rebound in stocks since early April largely reflects investors' bet that U.S. President Donald Trump won't follow through on his tariff threats. But the market's very resilience may encourage the president to push forward, which could be bad news for equities in both the U.S. and Europe. Investors appear to believe that the April 2 "reciprocal" tariffs were mostly a tactic to bring countries to the negotiating table, and Washington's levies will end up being much lower than advertised. Tariffs may end up much higher than they were before Trump's second term began, but the situation will still be better than the worst-case scenarios initially priced in after Trump's so-called "Liberation Day". Monday's equity moves were a case in point. Trump's threat on Saturday to impose 30% levies on imports from the European Union and Mexico - two of America's largest trading partners - was met with a collective market shrug. European and Mexican stocks dipped a bit, but Wall Street closed in the green and the Nasdaq hit a new high. This follows threats in recent days to place a 50% tariff rate on goods imported from Brazil and a 35% levy on goods from Canada not covered under the USMCA agreement. Brazilian stocks have slipped 5%, but Canadian stocks have hit new peaks. The question now is whether the line between complacency and the "TACO" trade - the bet that "Trump always chickens out" - is getting blurred. The scale of the recovery since April 7 is truly eye-popping. It took the S&P 500 less than three months to move from the April bear market lows to a new all-time high, as Charlie Bilello, chief market strategist at Creative Planning, recently noted on X. This was the second-fastest recovery in the last 75 years, only bested by the bear market recovery in 1982 that took less than two months. On a 12-month forward earnings basis, the S&P 500 index is now near its highest level in years and well above its long-term average. The tech sector, which has propelled the rally, has rarely been more expensive in the last quarter century either. None of that means further gains cannot materialize, and one could argue that the valuations are justified if AI truly delivers the promised world-changing productivity gains. Regardless, it is hard to argue that the rally since April is not rooted in the belief that tariffs will be significantly lower than the levels announced on Liberation Day. If many countries' levies do end up around 10% like Britain's and the aggregate rate settles around 15%, then equity pricing might very well be reasonable. But if that's not the case, growth forecasts will likely have to be revised a lot lower. "We stay overweight U.S. stocks, but don't rule out more sharp near-term market moves. Uncertainty on who will bear tariff costs means yet more dispersion in returns – and more opportunity to earn alpha, or above-benchmark returns," BlackRock Investment Institute analysts wrote on Monday. One concern is that a loop is potentially being created, whereby Wall Street's resilience and strength in the face of heightened trade uncertainty actually emboldens Trump to double down on tariffs. Most analysts still believe cooler heads will prevail, however. Trump's tolerance for equity and bond market stress, and therefore U.S. economic pain, appears "limited", according to Barclays. But if markets have gotten too complacent and Trump does increase tariffs on EU goods to 30%, potential retaliation would risk a repeat of something similar to the post-Liberation Day selloff, sending European equities down by double digits, Barclays warns. It may also be that when it comes to tariffs, investors are focusing so intently on China that not much else moves the dial. This may be short-sighted though. China accounted for 13.4% of U.S. goods imports last year, the lowest in 20 years. In contrast, the U.S. imported $605.7 billion of goods from the European Union, or 18.6% of all imports and the most from any single jurisdiction. As Trump sees it, Europe is "ripping off" America almost as much as China. Bilateral U.S.-China trade last year totaled $582 billion, compared with bilateral U.S.-EU trade flows of $975 billion, U.S. Census data shows. America's $235.9 billion goods deficit with the EU was smaller than its $295.5 billion gaps with China, but that's still comfortably America's second-biggest trade deficit. If Trump doesn't back down in his standoff with Europe, Wall Street might have to. (The opinions expressed here are those of the author, a columnist for Reuters)
Edinburgh Reporter
33 minutes ago
- Edinburgh Reporter
Pro Palestine protesters target Leonardo with van
Police were called to remove pro Palestine protesters at the Leonardo factory at Crewe Toll. By the time police officers arrived the protesters had rammed the van through the fence from the Morrisons car park and climbed onto the roof to try to cut through the razor wire. Police officers wearing what looks like climbing gear can be seen in our photographs putting the protesters into a stretcher and lowering them to the ground. The Sun reports that three women have been arrested after the protest. Leonardo supplies defence technology, and protesters repeatedly call on the company to stop manufacturing devices which they say are being used in Gaza. The protesters also flew a Palestinian flag over the back of the van. Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Palestine supporters used a van to ram perimeter fence at Leonardo Factory where Laser guidance systems for fighter jets are believed to be manufactured. Picture Alan Simpson 15/7/2025 Like this: Like Related
The National
an hour ago
- The National
There are no lengths Labour will not go to in attempts to ape Thatcher
IT seems that there are no lengths that our Labour-in-name-only government will not go to in its attempts to ape Margaret Thatcher. We've already seen it try to introduce cruel and vindictive cuts to benefits for disabled people, cuts which were too much for even a large number of the spineless 'Keir Starmer yes' men and women who make up the majority of Labour's back benches, prompting the Government to kick the issue into the long grass until autumn next year following a 'review'. However, since the cuts were introduced in the first place with the primary motivation of reducing the amount that the government spends on supporting disabled people and not out of any consideration about what might be in the best interests of disabled people themselves, it's difficult to see how this review might change anything. Now Chancellor Rachel Reeves is set to unveil a fresh suite of Thatcheresque policies. In a desperate attempt to create some economic growth, she is going to slash regulations on the banking sector, because that worked out so well prior to the banking crash of 2008, after which we learned that it had all been the fault of poor people all along, which was terribly convenient for bankers and their inflated salaries. Reeves insists that her reforms, whose most immediate effect will be to allow bankers to enrich themselves even more, will allow wealth to trickle down to working people. Now where have we heard that before? A spokesperson for the Treasury said: "Millions of Brits work in financial services, but for too long red tape and excessive regulation has choked off innovation and growth in the economy. 'Well, no more. Britain is entering a new era. We will slash regulation and make the UK the best place in the world to do business. 'Forget Paris, New York and Frankfurt – come to London, Leeds and Edinburgh. 'Rachel is determined to create a new Big Bang which will turbocharge growth in the economy for a new generation to put more pounds in people's pockets.' The Labour Government is making this move because it refuses to take the one step which more than other will boost the British economy, rejoining the European single market and customs union. Dave Doogan MP, the SNP's economy spokesperson, told The National there was "no bounds" to Labour's desire to invite comparisons with Thatcher, after Keir Starmer claimed the controversial former PM had "set loose our natural entrepreneurialism". He added: "It goes down like a bucket of cold sick in Scotland where communities still suffer from the economic misery she inflicted upon our country. "While Rachel Reeves may hark back to a golden age for London-based bankers, the fact is at the very time Thatcher rewarded the City, Scotland's heavy industries were being systemically destroyed while our North Sea oil kept the UK state afloat. "Sir Keir Starmer and Rachel Reeves might see Margaret Thatcher as an idol to emulate, but to increasing numbers of Scots that simply serves to show just how distant Westminster is to the needs of Scotland. "The Labour Party may plan to cut regulation for London bankers, but the biggest piece of red tape they can cut is Brexit which the Westminster establishment refuse to acknowledge – Scotland is a wealthy country blessed with natural resources, but for as long as we remain tied to broken, Brexit Britain our full potential will never be realised." Labour Party in Scotland has no problem with attack on devolution A Labour review of the Conservatives' controversial Internal Market Act (IMA), which gave UK Government ministers legal powers to override the Scottish Parliament on devolved matters has failed to call for a repeal of the act, instead leaving its powers of UK Government veto essentially intact. In October 2023, the Scottish Parliament voted by a large majority to refuse to give consent to the act, which strikes at the very foundational principles of the devolution settlement. Anas Sarwar and Labour MSPs voted along with the SNP and the Scottish Greens to refuse Scottish Parliament consent to the act, branding it an "unwarranted attack on devolution". The motion which Labour backed explicitly called for the repeal of the Internal Market Act because it had 'undermine[d] democratic decisions of the devolved legislatures … to the detriment of the people of Scotland'. However, in February this year, the Scottish Parliament debated a motion calling on the UK Government to repeal the act, but to no one's great surprise, Anas Sarwar and Labour MSPs are now in favour of the act. The Labour Party in Scotland has no problem with an "unwarranted attack on devolution" when it's a Labour Government doing the attacking. This is in stark contrast to the Labour-run government in Wales which opposes the act, believing it to be 'an unwarranted attack on devolution'' and has called for it 'to be repealed'. Constitution Secretary Angus Robertson said the IMA 'undermines the ability of the Scottish Parliament to use its powers to pursue devolved social and economic objectives in Scotland for the people to which it is accountable'. He went on: 'It introduces radical new uncertainty as to the effect of laws passed by the Scottish Parliament and effectively provides a veto to UK ministers. Nothing set out in the UK Government's response to the review changes this position, which is completely unacceptable. 'The conclusion of the review falls well short of our stated position of repeal and replace the IMA, and indeed short of the legislative change required to mitigate the most damaging aspects of the operation of the IMA. 'It is important also to note that the Scottish Parliament has twice voted to repeal the act – since it is fundamentally misconceived and incompatible with devolution. 'We do welcome the UK Government's intention to address some of the most egregious issues with the function of the IMA exclusions process. 'However, we remain concerned that there is no clear vehicle to give meaningful effect to these changes, which work against our shared interests to promote growth, protect jobs and ensure seamless trade across the UK nations.' When it took office in July last year, Labour promised a "reset" of the relationship between Westminster and the devolved parliaments following the years damaging high handed contempt which had characterised relations between the Conservative government and Holyrood. The reset has involved replacing high handed Tory contempt for Holyrood with high handed Labour contempt for Holyrood.
