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Pound holds ground as Rishi Sunak leads race to become UK prime minister
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Pound holds ground as Rishi Sunak leads race to become UK prime minister

London CNN Business  —  Britain’s third prime minister in seven weeks will face the huge challenge of projecting stability after a period of historic political and financial market chaos. But their other task — shepherding the country through a recession — is poised to be just as daunting. Rishi Sunak emerged over the weekend as...

Liz Truss was defeated by the bond market. Investors aren’t satisfied yet
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Liz Truss was defeated by the bond market. Investors aren’t satisfied yet

London CNN Business  —  After a bruising three-week battle with bond markets, UK Prime Minister Liz Truss admitted defeat on Friday. She fired her finance minister and gutted her economic program by promising to reinstate a big tax hike on corporations. Truss said she acted in the national interest to ensure economic stability and to...

Jeremy Hunt: New UK finance minister races to calm markets with quick reset
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Jeremy Hunt: New UK finance minister races to calm markets with quick reset

London CNN Business  —  Britain’s new finance minister, just days into the job, will rush out details of a revised tax and spending plan on Monday in a frantic effort to control jittery markets. Jeremy Hunt will deliver a statement later Monday on how the United Kingdom intends to put public finances on a sustainable...

Worsening inflation in US will pressure Fed to keep raising interest rates
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Worsening inflation in US will pressure Fed to keep raising interest rates

Inflation in the United States accelerated in September, with the cost of housing and other necessities intensifying pressure on households, wiping out pay gains and ensuring that the Federal Reserve will keep raising interest rates aggressively. Consumer prices, excluding volatile food and energy costs, jumped 6.6 per cent in September from a...

UK pensions: There’s no quick fix for the market mess
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UK pensions: There’s no quick fix for the market mess

London CNN Business  —  The Bank of England is struggling to contain a crisis triggered by the UK government’s brash plans to borrow heavily to pay for tax cuts, feeding fears that the country’s financial markets could once again spin out of control. Almost 20 days after Finance Minister Kwasi Kwarteng unveiled his much-criticized plan...

The Not-So-Invisible Hand: Central Banks
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The Not-So-Invisible Hand: Central Banks

Politicians may debate whether big-government socialism or free-market capitalism leads to better economic outcomes. Their constituents may worry about rising prices and declining prospects for retirement. But neither group has the power to create money with no questions asked, manipulate the cost of capital, or counteract movements in financial markets. The central bankers are in...

Nobel Prize in economics awarded to Ben Bernanke, Douglas Diamond and Philip Dybvig for work on financial crises
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Nobel Prize in economics awarded to Ben Bernanke, Douglas Diamond and Philip Dybvig for work on financial crises

London CNN Business  —  Former Federal Reserve Chair Ben Bernanke, Douglas Diamond and Philip Dybvig were awarded the Nobel Prize in economics on Monday for their work on banks and financial crises. The three US economists were recognized by the Royal Swedish Academy of Sciences for their work in the early 1980s, which the institute...

How a sleepy corner of the market nearly triggered a meltdown
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How a sleepy corner of the market nearly triggered a meltdown

London CNN Business  —  Pension funds are designed to be dull. Their singular goal — earning enough money to make payouts to retirees — favors cool heads over brash risk takers. But as markets in the United Kingdom went haywire last week, hundreds of British pension fund managers found themselves at the center of a...

5 signs the world is headed for a recession
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5 signs the world is headed for a recession

New York CNN Business  —  Around the world, markets are flashing warning signs that the global economy is teetering on a cliff’s edge. The question of a recession is no longer if, but when. Over the past week, the pulse of those flashing red lights quickened as markets grappled with the reality — once speculative,...