LIZ TRUSS

Volatile U.S. financial markets are particularly vulnerable right now to foreign shocks.

Federal Reserve Vice Chair Lael Brainard said Friday that U.S. interest rates will likely have to remain high for an extended period to combat inflation, capping a week of tough rhetoric by Fed officials.

The announcement from the Office for Budget Responsibility came after agency officials held an unprecedented meeting with Truss and Treasury chief Kwasi Kwarteng. The OBR said it has already started reviewing the plan and would deliver the “first iteration" of that analysis to Kwarteng on Oct. 7. It marked the first time OBR officials had met with a prime minister since the independent agency was created 12 years ago. The chairman of the House of Commons’ Treasury committee said the meeting was an opportunity for the government to change its course. Besides the tax cuts in the government's economic stimulus plan, Truss also has capped energy bills for households and businesses that are driving a cost-of-living crisis.

The OBR promised an analysis by Oct. 7, far sooner than the date previously suggested — Nov. 23 — when the government releases more details on its economic plans. The chairman of the House of Commons’ Treasury committee said the meeting was an opportunity for the government to change course. Truss defended her plan Thursday and shrugged off the market chaos, saying she was willing to make "controversial and difficult decisions" to get the U.K. economy growing. She said the problems facing the economy — namely high inflation driven by soaring energy prices — were global and spurred by Russia's invasion of Ukraine. She also has capped energy bills for households and businesses that are driving a cost-of-living crisis, though prices are still going up Saturday as natural gas prices soar.

LONDON — (AP) — The U.K.'s Office of Budget Responsibility says it will deliver an initial analysis of the government’s economic plan on Oct. 7 following a meeting Friday with Prime Minister Liz Truss. The chairman of the House of Commons’ Treasury committee said the meeting was an opportunity for the government to change course. LONDON (AP) — Revised figures show the U.K. economy grew slightly in the second quarter of the year, indicating the country isn’t currently in a recession. That would have put the British economy into a technical recession if the second-quarter figures hadn’t been revised. The new figures more accurately reflect growth in financial services and the pandemic’s impact on healthcare, the national statistics office said.

Germany on Thursday announced an up to $194 billion program to tackle rising energy prices. But Europe’s response to the crisis has been divided.

BEIJING — (AP) — Global stocks were mixed Friday after inflation in 19 countries that use Europe's euro currency spiked to a record and Chinese factory activity weakened. Wall Street futures rebounded after the benchmark S&P 500 index fell Thursday to its lowest level in almost two years. On Thursday, German Chancellor Olaf Scholz said the world’s fourth-biggest economy faces a “double whammy” from inflation and surging energy prices. On Wall Street, the S&P 500 future was 0.6% higher. The S&P 500 is on track to end September with an 8% loss for the month.

At the party's annual conference, its co-leaders will say a new levy would raise around £70bn a year.

Britain’s independent budget watchdog says it would deliver an initial analysis of the government’s economic plan to Treasury officials on Oct. 7.

British Prime Minister Liz Truss and her Finance Minister Kwasi Kwarteng are set to meet the U.K.'s independent monetary watchdog for talks on Friday.

But an economic stimulus plan announced last week by Prime Minister Liz Truss' new government brought no relief — far from it. “Everything’s based on the dollar — diesel for the vessels to catch the fish, trucks to deliver our products. It has a big impact,” Niazi said from his takeout shop, Olley’s Fish Experience. Niazi’s concerns about the sliding pound are echoed by other businesspeople like Sanjay Aggarwal, co-founder of Spice Kitchen. “But in the long term, the lower pound will push up the cost of all imports for business,” she added.

The British government’s economic stimulus plan is designed to help people and businesses by cutting taxes and growing the economy.

BEIJING — (AP) — Asian stocks sank again Friday after German inflation spiked higher, British Prime Minister Liz Truss defended a tax-cut plan that rattled investors and Chinese factory activity weakened. The Shanghai Composite Index lost 0.2% to 3,034.84 after surveys of manufacturers showed factory production, new export orders and manufacturing employment declined in September. New Zealand and Southeast Asian markets declined. More 90% of the stocks in the index declined, putting it on track to end September with an 8% loss for the month. The Caixin monthly purchasing managers' index declined from its August level while a separate index by the China Federation of Logistics & Purchasing edged above a break-even point that shows activity increasing.

Wall Street closed out a miserable September with a loss of 9.3%, the worst monthly decline since March 2020.

Asian stocks have sunk again after German inflation spiked higher, British Prime Minister Liz Truss defended a tax-cut plan that rattled investors and Chinese manufacturing weakened.

BEIJING — (AP) — Asian stocks sank again Friday after German inflation spiked higher, British Prime Minister Liz Truss defended a tax-cut plan that rattled investors and Chinese manufacturing weakened. The Shanghai Composite Index lost 0.6% to 3,023.91 after surveys of manufacturers showed production and new orders declined in September. New Zealand and Southeast Asian markets declined. More 90% of the stocks in the index declined, putting it on track to end September with an 8% loss for the month. The Caixin monthly purchasing managers' index declined from its August level while a separate index by the China Federation of Logistics & Purchasing edged above a break-even point that shows activity increasing.

The PM's reaction was keenly awaited after a dramatic week which saw a mini-budget and the pound slump.

The prime minister was asked about her plans during a series of BBC local radio interviews.

NEW YORK — (AP) — Stocks are dropping in early trading on Wall Street as bond yields get back to rising, putting the squeeze back on markets. The S&P 500 was 1.6% lower Thursday and on pace for its seventh drop in the last eight days. The future for Wall Street's benchmark S&P 500 index was down 1.3%. Despite Wednesday's gain, the S&P 500 is down more than 20% from its Jan. 3 record, which puts it in what traders call a bear market. Forecasters see more turbulence ahead due to worries about a possible recession, higher interest rates and even higher inflation.

Erdogan doubled down on his controversial monetary plan on Thursday, saying that he told central bank decision-makers to continue lowering rates.

BEIJING — (AP) — European stocks tumbled Thursday and Asian markets were mixed after British Prime Minister Liz Truss defended a tax-cut plan that rattled investors. Stocks and the British pound fell Tuesday on fears Truss's tax cuts would push up already high inflation. Markets rebounded Wednesday after the Bank of England said it would buy government bonds to stop a price slide. Markets fell back Thursday after Truss shrugged off criticism and a public appeal by the International Monetary Fund to scrap the tax cut plans. Forecasters see more turbulence ahead due to worries about a possible recession, higher interest rates and even higher inflation.

Truss said her widely-criticized policies, which caused chaos in U.K. markets, would grow the economy while supporting households with higher bills.

LONDON — (AP) — British Prime Minister Liz Truss defended her economic plan Thursday and said she’s willing to make “difficult decisions” to get the economy growing. In her first public comments since her government’s announcement of billions in uncosted tax cuts roiled markets and drove the pound to record lows, Truss said Britain was facing a “very, very difficult” economic situation. But she said the problems were global and spurred by Russia’s invasion of Ukraine. Truss told BBC local radio that “we had to take urgent action to get our economy growing, get Britain moving and also deal with inflation.”Copyright 2022 The Associated Press. This material may not be published, broadcast, rewritten or redistributed without permission.

British Prime Minister Liz Truss has defended her economic plan that roiled financial markets, saying she’s willing to make “difficult decisions” to get the economy growing.

The UK’s new prime minister wanted to make a fresh start for the country’s economy — and then hit the ground face first.

This is a self-inflicted crisis at heart, but the scale of the turmoil also makes London look like a canary in the coal mine.

MPs aren’t just worried by the basic conceit at the heart of Kwasi Kwarteng’s mini-budget, but also by the inept way it’s been handled.

Within weeks of entering new prime minister Liz Truss’s government, one economic expert appears to have tanked the British economy.

The Bank of England said it would buy long-term government bonds over the next two weeks to combat a recent slide in British financial assets. The bank’s actions are focused on long-term government debt, where yields have soared in recent days, pushing up government borrowing costs. “Were dysfunction in this market to continue or worsen, there would be a material risk to U.K. financial stability,″ the bank said in a statement. The British pound plunged to a record low against the U.S. dollar Monday following the government’s announcement, and yields on U.K. government debt soared. The Bank of England’s plan to buy government debt helped stabilize the bond market, with 10-year bond yields falling to 4.235% in midday trading in London.

Prime Minister Liz Truss, who is just three weeks into the job, is trying to change the British economy with bold — some would say risky — actions that have spooked investors.

Britain's spend-and-don't-tax plan has sent the pound into a tailspin, with one noted economist calling it "utterly irresponsible."

The pound hit its lowest level against the dollar since shoulder pads were in fashion. That’s very bad news for clothing stores.

All things considered, it would be better to let markets set prices, but good solutions are hard to find.

Former U.S. Treasury Secretary Larry Summers said there were "hallmark" signs that the U.K.'s credibility had been lost.

The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cut in 50 years sent the currency tumbling to a record low the previous day.

Bloomberg Opinion columnists discuss the pound’s slide, and what the Bank of England can do about it.

If Liz Truss’s government is serious about growth and fiscal sustainability, Friday’s “budget” was an odd way of showing it.

Financial markets reacted with alarm to new U.K. Prime Minister Liz Truss' emergency budget measures.

The pound fell as low as $1.0373 Monday, before rallying to above $1.07 in early London trading.

The British currency has taken a plunge, sliding against the U.S. dollar to touch an all-time low. Here's a look at what it all means:EVERYDAY IMPACTMany Britons are struggling amid soaring inflation driven by rising prices for food and energy, in a cost-of-living crisis that's been dubbed the worst in a generation. Rising rates mean many homeowners face bigger monthly mortgage bills, leaving them less to spend on other goods and services. Fifteen years ago, 1 British pound was able to buy $2. Now, the pound is getting closer to parity with the greenback, a once-unthinkable event and a psychologically important milestone.

Sterling fell as much as 4.8% to trade below $1.04 in the early hours of Monday morning, extending losses from late last week.

The British currency has taken a plunge, sliding against the U.S. dollar to touch an all-time low.

The debate over the UK’s budget proposal could use fewer adjectives and more numbers.

The ex-England star says "I love what I do" and he doesn't need political office to support Labour.

Britain’s most radical package of tax cuts since 1972, combined with plans for large-scale borrowing, have taken financial markets by surprise and triggered a slump in the pound to a record low. The unorthodox measures are designed to kick-start economic growth. Yet the mini-budget unveiled on Sept. 23 raised fears that it could exacerbate inflation, undermine state finances and even cause a full-scale run on the currency, putting pressure on the central bank to step in.

Britain’s most radical package of tax cuts since 1972, combined with plans for large-scale borrowing, have taken financial markets by surprise and triggered a slump in the pound to a record low. The unorthodox measures are designed to kick-start economic growth. Yet the mini-budget unveiled on Sept. 23 raised fears that it could exacerbate inflation, undermine state finances and even cause a full-scale run on the currency, putting pressure on the central bank to step in.

The first fiscal policy announcement from new British Prime Minister Liz Truss's government has been met with one of the worst market reactions in modern history.

LONDON — (AP) — The British pound has resumed a slide against the U.S. dollar that picked up pace last week after the U.K.'s new government outlined plans to cut taxes and boost spending. The pound dipped as low as $1.0349 per U.S. dollar early Monday but then rebounded to $1.0671, down 2.3%. Other currencies have also weakened against the dollar as the Federal Reserve has hiked interest rates to combat inflation. He also said previously announced plans to cap soaring energy bills for homes and businesses would be financed through borrowing. The British currency closed at $1.0822 in London on Friday, from $1.1255 on Thursday.

The Bank of England has sought to reassure financial markets after the British pound touched an all-time low against the U.S. dollar, but its entreaty has fallen flat for investors concerned about the government's sweeping package of tax cuts.

Will taxpayer cash be channeled to hedge fund speculators? Will strings be attached? We don’t know yet.

United Kingdom Prime Minister Liz Truss has continued defending her government cutting taxes to help incentivize economic growth as a recession looms over Europe.

British Prime Minister Liz Truss is seeking a negotiated solution with the European Union to resolve tensions over the Northern Ireland protocol.

This year’s U.N. General Assembly meeting of world leaders comes on the heels of another event that reverberated internationally — the death of Britain’s Queen Elizabeth II

This year’s U.N. General Assembly meeting of world leaders comes on the heels of another event that reverberated internationally — the death of Britain’s Queen Elizabeth II.

The prime minister is following a well-trodden path by breaking with her predecessors. But the tide is already moving in Labour’s direction.

The prime minister is following a well-trodden path by breaking with her predecessors. But the tide is already moving in Labour’s direction.

For something that wasn't even technically a Budget, it was one heck of a statement of intent.

Saturday's papers are dominated by Chancellor Kwasi Kwarteng's biggest tax cuts in 50 years.

The untouched elephant in the economy is the National Health Service.

The fallout from the government’s mini-budget is UK assets looking more attractive to would-be acquirers.

The British pound has went on its biggest one-day drop in 2 1/2 years after the U.K.’s new government outlined plans to cut taxes and boost spending.

Britain’s government has confirmed it is lifting a ban on fracking in England, arguing that the move will help boost the country’s energy security following Russia’s invasion of Ukraine.

The Bank of England has raised its key interest rate by another half-percentage point.

Pubs, restaurants, breweries, retailers and other businesses across the United Kingdom are being pushed to the brink by skyrocketing energy bills.

Now that he's monarch, King Charles III — one of Britain's most prominent environmental voices — will have to be more careful with his words.

British Prime Minister Liz Truss is accusing Russian President Vladimir Putin of making “saber-rattling threats” to cover his failed invasion of Ukraine.

Britain’s government says it will cap wholesale energy bills for businesses this winter to ensure companies don’t go bust amid soaring energy prices.

President Joe Biden has declared that Russia has “shamelessly violated the core tenets” of the United Nations charter with its “brutal, needless war” in Ukraine.

British Prime Minister Liz Truss is at the UN on a mission to convince the world that she is a steely leader for tough times.

President Joe Biden is confronting difficult issues as he travels to New York this week for the annual gathering of world leaders at the U.N. General Assembly.

U.K. Prime Minister Liz Truss said Tuesday that she’s ready to make “unpopular decisions” such as boosting bonuses for wealthy bankers in order to get the U.K.’s sluggish economy growing.

British Prime Minister Liz Truss says the death of Queen Elizabeth II is a “very difficult moment” for the country," and dealing with it has been a challenge for her untested new government.

Prime Minister Liz Truss has kicked off her first visit to the United States as Britain’s leader with an admission that a U.

Britain and the world said farewell to Queen Elizabeth II with pomp and pageantry.

American presidents usually make a splash when they travel abroad, holding the spotlight and quickly becoming the center of attention.

World leaders are gathering at the United Nations this week under the shadow of Europe’s first major conflict since World War II.

After two years of virtual and hybrid summits, the world will once again convene in New York this week for the U.N. General Assembly.

President Joe Biden has arrived in London to pay his respects to Queen Elizabeth II at a time of transition in U.S.-U.K. relations, with both a new monarch and a new prime minister settling in.

British Prime Minister Liz Truss took office less than two weeks ago, impatient to set her stamp on government.

Waiting in line to bid farewell to Queen Elizabeth II is a singular event — no matter who you are.

The death of Queen Elizabeth II has triggered a tightly choreographed series of ceremonial and constitutional steps, as Britain undergoes a national mourning and heralds the reign of King Charles III.

Australian Prime Minister Anthony Albanese says it would be “perfectly acceptable” for King Charles III to continue to advocate for climate change action in his new apolitical role as monarch.

Because she reigned and lived for so long, Queen Elizabeth II's death was a reminder that mortality and the march of time are inexorable.

Inflation in the United Kingdom slowed slightly in August as a drop in gasoline and diesel fuel prices gave consumers the first glimmer of hope that Britain’s cost-of-living crisis may be beginning to ease.

Since the death of Queen Elizabeth II, a handful of people in Britain have been detained by police for expressing anti-monarchy views.

Queen Elizabeth II has been likened to the invisible glue holding the United Kingdom together.

In his first visit to Britain’s Parliament as monarch, King Charles III spoke of feeling the “weight of history which surrounds us” and referenced his “medieval predecessors” as he pledged to follow in his late mother Queen Elizabeth II’s footsteps and uphold the principles of constitutional monarchy.

French President Emmanuel Macron has turned his attention from Great Britain's new head of state to the new head of government on Saturday evening.

The death of Queen Elizabeth II has triggered a series of carefully structured ceremonial and constitutional steps, as Britain undergoes a period of national mourning and heralds the reign of King Charles III.

King Charles III says he feels “profound sorrow” over the death of his mother, Queen Elizabeth II, and vows to carry on her “lifelong service” to the nation.

Colombia, Ecuador and Venezuela offered condolences to the United Kingdom on Friday following the death of Queen Elizabeth II, the longest reigning British monarch.

Buckingham Palace says Queen Elizabeth II, Britain’s longest-reigning monarch, has died at 96.

U.K. politicians across the political spectrum have united in sorrow at the death of Queen Elizabeth II, a passing that brought the country’s usually fractious politics to a halt.

Support from around the world is pouring in following the death of Britain’s Queen Elizabeth II.

Queen Elizabeth II, Britain’s longest-reigning monarch, has died at age 96.

Elton John paid tribute to Queen Elizabeth II at his final concert in Toronto, saying he was inspired by her and is sad she is gone.

British Prime Minister Liz Truss says her Conservative government will cap domestic energy prices for homes and businesses to ease the cost-of-living crisis.

Britain’s new prime minister has pledged to rebuild the economy and “ride out the storm” gathering over the country, but Liz Truss faces a daunting job.

Liz Truss’s new Cabinet is Britain’s most diverse ever with women serving as prime minister and deputy prime minister and Black and South Asian politicians filling many of the top jobs.

U.K. Prime Minister Liz Truss has ruled out a windfall tax on oil companies to pay for her plans to tackle the energy crisis.