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In the present day’s agenda: Elon Musk’s Trump donation; Boeing’s struggles; US ultimatum on Israel; Saudi Arabia tightens purse; and Venice’s farm-to-table motion
Good morning. We begin with information that UK chancellor Rachel Reeves has recognized a £40bn funding hole forward of her Price range in two weeks — way over beforehand anticipated.
Why is the hole a lot bigger? The determine represents the funding that Reeves wants to guard key authorities departments from real-terms spending cuts, cowl the enduring impression of an annual £22bn overspend and construct up a fiscal buffer for the rest of the parliament.
How will it’s funded? The Monetary Instances has been instructed by officers near the Price range course of that the Treasury is searching for methods of closing the shortfall, with tax rises set to type the centrepiece of the chancellor’s response.
Reeves wants to lift taxes or discover financial savings — together with by welfare cuts — to fulfill a brand new “golden rule” that balances day-to-day spending with tax revenues. She has in current weeks been warning that “difficult decisions” lie forward on tax, spending and welfare. Learn the complete report.
Step into the chancellor’s footwear and see for those who can run the UK financial system with the FT’s new Price range sport.
Right here’s what else I’m protecting tabs on in the present day:
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Financial information: The UK and Italy have September client inflation information.
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Outcomes: Abbott, Alcoa, Equifax, Kinder Morgan, Morgan Stanley, Prologis, United Airways, US Bancorp and Whitbread report.
5 extra prime tales
1. Elon Musk has given practically $75mn to assist Donald Trump’s bid to win again the White Home. The Tesla and X proprietor made a number of multimillion-dollar donations throughout the third quarter to his political motion committee, based on a federal submitting launched yesterday, giving the group a enormous funds to help Trump’s re-election bid.
2. Boeing has introduced plans to lift as much as $25bn in new capital and agreed a $10bn credit score facility. The transfer comes every week after S&P International Scores warned of a potential downgrade of Boeing’s bonds to junk standing within the face of a crippling strike by its largest labour union. Learn extra on Boeing’s newest response to its troubles.
3. The US has instructed Israel it must take “urgent and sustained actions” to enhance the dire humanitarian scenario in Gaza or navy assist from Washington might be in danger, in a uncommon public ultimatum to Benjamin Netanyahu’s authorities and an indication of rising frustration on the conflict’s civilian toll. Right here’s what the US is demanding.
4. Unique: Brussels plans to increase its powers over merger offers with the intention to cease “killer acquisitions” that pose dangers to start-ups in Europe and past, based on individuals accustomed to the discussions. It might be the primary overhaul of the EU’s rule ebook on mergers and acquisitions in a long time, however some officers are expressing considerations concerning the deliberate reforms.
5. Italian Prime Minister Giorgia Meloni has mentioned her authorities is planning to lift €3.5bn from banks and insurance coverage firms because it seeks to plug a €9bn funds hole. Following a cupboard assembly final evening, Meloni wrote on X that the additional funds could be used to finance the general public well being system and enhance companies for these in want. Right here’s why monetary firms are within the crosshairs.
The Large Learn
A frenzy of exercise led by Saudi Arabia’s Public Funding Fund has remodeled the as soon as conservative kingdom into one of many world’s largest development websites and a magnet for worldwide consultants and contractors. However after virtually a decade of the frenetic tempo, Riyadh is starting to scale down on the spending spree as a sense of realism and pragmatism takes maintain.
We’re additionally studying . . .
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NHS: The Labour authorities has promised to convey the service into the digital age, however medical doctors say the fundamental infrastructure first must be introduced as much as a minimal customary.
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Cheapflation: Costs of cheap items have risen sooner than dearer varieties. Governments and companies are actually making an attempt to determine who in charge, writes Brooke Masters.
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US politics: The brazenness of the nation’s politicians within the face of scandals is a defining characteristic of the period. Ed Luce asks: has America misplaced its disgrace?
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4 funding errors to keep away from: In his new column, Jonathan Guthrie takes a have a look at good and unhealthy monetary pondering.
Chart of the day
The Worldwide Vitality Company has mentioned that a large improve in using air con, pushed by rising incomes within the growing world and better temperatures from local weather change, may have one of many largest and most unpredictable impacts on the world’s electrical energy grids within the coming decade.
Take a break from the information
On the island of Sant’Erasmo within the Venetian lagoon, a pioneering co-operative based by native cooks has established a kitchen backyard to create jobs and save the distinctive flavours of vegatables and fruits utilized in dishes liable to disappearing. Right here’s the place to partake within the metropolis’s farm-to-table revolution.
Further contributions from Gordon Smith and Benjamin Wilhelm
