UK net borrowing increased to £20.2 billion in September from £15.3 billion in August, the latest setback for Chancellor Rachel Reeves as she prepares for next month’s autumn budget. That was the second largest spending deficit recorded in this calendar year and comes in several billions of pound higher than expected.
After Friday’s torrid trading, financial markets started the week on a much firmer footing. Concerns around US regional banks were soothed by a strong earnings report from that very sector. The S&P 500 closed within a whisker of its record high thanks as well to more positive mood music around both trade and the US government shutdown, now the joint second-longest in history.
Monday was a frustrating start to the week for the many companies and workers reliant on web-based services. A snafu at Amazon led to a chain reaction that knocked vital providers – including Lloyd’s Bank, Ring Doorbell and even HMRC – offline. All told, there were almost seven million reports of outages related to the incident.
Things were muted in currency markets, with any movements between major pairs limited. That could change soon as we progress towards the business end of the week, one that is likely to bring significant uncertainty for sterling.
European leaders rallied around Ukraine’s Volodymyr Zelenskyy after a fraught meeting in the Oval Office. The President reportedly grew frustrated and asked Ukraine’s president to accept the realities of the battlefield and make a peace compromise.
Across the Mediterranean, the fragile cease fire between Israel and Hamas is still holding. Yesterday, Hamas agreed to return the remains of another hostage after Israeli air strikes over the weekend.
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