Summary
Chancellor John Healy unveils the UK government's autumn budget, aiming to reassure bond markets and provide relief to households facing rising energy costs. The budget includes modest measures such as a freeze on council tax and cuts to VAT on electricity bills, but critics argue these efforts are insufficient given the severe inflation impacting disposable incomes. Banks emerge as the primary losers, facing increased corporation tax surcharges, while savers and property owners also see higher taxes.
In Israel, election results indicate a political deadlock, with neither Prime Minister Benjamin Netanyahu's coalition nor the opposition led by Gaddy Eisenkot securing a majority. The Arab parties, which gained significant seats, could play a pivotal role in coalition negotiations, although aligning with them poses political risks for the Jewish opposition bloc. Analysts predict a prolonged period of negotiations, with the possibility of a unity government or a return to elections if no coalition is formed.
Meanwhile, the U.S. Federal Reserve opts to maintain interest rates, citing the need for more evidence of worsening inflation before making further changes. This decision comes ahead of the midterm elections, with officials emphasizing that political considerations did not influence their choice. In corporate news, Alphabet's substantial AI spending raises concerns among investors, while Oracle's positive forecasts help stabilize market sentiment.
Show Notes
Chancellor John Healey has targeted banks, savers and property owners in his Autumn Budget, Benjamin Netanyahu holds the lead in Israel’s election but there’s no clear winner yet, and one of the oldest American law firms told partners that it should dissolve. Plus, the Federal Reserve kept US borrowing costs on hold days before midterm elections, and Google shares fell sharply after boosting its spending on AI to more than $50bn in the third quarter.
Mentioned in this podcast: John Healey hits banks and savers with tax rises in Budget ‘for working people’ What’s next for Burnham after the Budget? The fear factor giving Netanyahu the edge Benjamin Netanyahu ahead but no clear winner in Israeli election Weil leadership to tell partners firm should be dissolved Google shares drop 7% after $51bn AI spend deepens cash burn Federal Reserve holds rates steady despite worsening US inflation Credit: Federal Reserve
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The FT News Briefing is produced by Sonja Hutson, Saffeya Ahmed, and Josh Gabert-Doyon. Our editor is Marc Filippino. Our video producer is Zachary Alfred. Our show is mixed by Sam Giovinco and Alex Higgins. Additional help from Gavin Kallmann, Michael Lello, Vanessa Brown, Peter Barber and David da Silva. Our executive producer is Topher Forhecz. Flo Phillips is the FT’s global head of audio. The show’s theme music is by Metaphor Music.
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