Economic crisis: a ‘bleak’ future for Britain – The Financial Times

Economic crisis: a ‘bleak’ future for Britain – The Financial Times
Economic crisis: a ‘bleak’ future for Britain – The Financial Times

Economic crisis: a ‘bleak’ future for Britain – The Financial Times

British newspapers have focused on the future of the UK economy after Prime Minister Rishi Sunak’s government announced plans alongside the end of Nancy Pelosis’ term as President of the US House of Representatives.

We start with the Financial Times, which ran an editorial entitled “Bleak future for UK economy”.

The paper says Chancellor of the Exchequer Jeremy Hunt’s autumn manifesto is so at odds with the “small” budget of his predecessor, Kwasi Kwarting, that we feel another party has come to power.

In eight weeks, she says, Britain has gone from making the biggest tax cuts in 50 years to the toughest package of measures to boost revenue and curb spending in more than a decade.

She adds that the market reaction suggests the £55bn belt tightening has managed to reassure investors.

What stands out, however, is the bleak outlook for the UK economy that emerged in the autumn statement, as living standards fell at their sharpest rate in six decades. The statement suggested that the UK economy will not recover to its pre-pandemic levels until late 2024.

According to the paper, Hunt needed to take enough action to convince markets he was serious about fiscal consolidation.

The article notes that the restoration of credibility came from the manner and tone in which Hunt made the statement, convincing investors that the new Chancellor of the Exchequer and Prime Minister, Rishi Sunak, meant business.

The letter stressed support for the Bank of England’s anti-inflation efforts, its independence and respect for financial regulators.

The newspaper thinks it is politically and economically logical to postpone most of the spending cuts to 2025 and to achieve almost half of them through tax increases.

She adds that spending cuts will weigh more heavily on growth and delaying them will help ease the recession that has already begun.

The newspaper says that with inflation hitting its highest level in 41 years, households and businesses in the UK are unable to afford significant austerity measures in the short term.

According to the newspaper, the statement was sorely lacking in plans to boost potential growth.

She says the government needs to come up with a serious and credible plan to get Britain’s economy back on track. If she doesn’t, she will give up any hope of victory in the next election, leaving Britain to years of painful austerity and stagnation.

Legacy of Nancy Pelosi

And we continue with the Financial Times, whose Opinion page contained an article by Edward Luce entitled “Nancy Pelosi’s Presidency Era Likely Not To Be Surpassed”.

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The author says it was one of the most impressive images of Nancy Pelosi’s career when Republican Hank Paulson knelt in the White House as Treasury Secretary to plead with Pelosi to bail out the American economy.

He says something like the Republican administration’s turn to Pelosi, a Democrat, to bail out the US amid the 2008 financial crisis will not be forgotten in history.

The author notes that Pelosi’s departure from the House presidency highlights two aspects of Washington today: The first is that he is likely to succeed her in her Republican office, Kevin McCarthy, who lacks almost any ability to lead his party faction.

He says Pelosi was the highest and most prominent woman in the history of the United States until Kamala Harris was inaugurated as vice president on January 20 last year.

He adds that the second issue highlighted by Pelosi’s resignation is the age of the Democratic Party leaders.

Pelosi, 82, is two years older than Joe Biden, who turns 80 this weekend. And although Pelosi has a close relationship with the president, who has called her “the most important lawmaker in American history,” her decision to step down will likely fuel debate over whether he should run again — a decision Biden says that he will meet her in January /January.

The author says Pelosi’s decision was prompted in part by the attack on her 82-year-old husband, Paul Pelosi, who was assaulted at their San Francisco home just days before this year’s midterm elections and was hospitalized with a fractured skull.

World Cup in Qatar

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We turn to the Times newspaper and a report entitled ‘Qatar wants total beer ban in stadiums’.

Just three days before the start of the World Cup, the newspaper said, the Qatari hosts are urging FIFA to radically change its beer sales policy at the World Cup and stop selling Budweiser beer in the eight stadiums where matches will be played.

According to the report, an announcement is expected soon, but fans will likely be told they won’t be able to buy beer at any game.

And if Budweiser, one of FIFA’s main sponsors, can’t sell its product or perform at games, the world’s governing body is in breach of a multimillion-dollar contract.

The report adds that the only place sure beer will be available to all football fans is their dedicated arenas in Doha.

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