This text is an on-site model of our FirstFT publication. Subscribers can signal as much as our Asia, Europe/Africa or Americas version to obtain the publication each weekday. Discover all of our newsletters right here
Immediately’s agenda: Elon Musk’s Trump donation; Boeing’s struggles; US ultimatum on Israel; Saudi Arabia tightens purse; and Venice’s farm-to-table motion
Good morning. We begin with information that UK chancellor Rachel Reeves has recognized a £40bn funding hole forward of her Price range in two weeks — way over beforehand anticipated.
Why is the hole a lot bigger? The determine represents the funding that Reeves wants to guard key authorities departments from real-terms spending cuts, cowl the enduring influence of an annual £22bn overspend and construct up a fiscal buffer for the rest of the parliament.
How will it’s funded? The Monetary Instances has been advised by officers near the Price range course of that the Treasury is searching for methods of closing the shortfall, with tax rises set to type the centrepiece of the chancellor’s response.
Reeves wants to boost taxes or discover financial savings — together with by welfare cuts — to fulfill a brand new “golden rule” that balances day-to-day spending with tax revenues. She has in current weeks been warning that “difficult decisions” lie forward on tax, spending and welfare. Learn the complete report.
Step into the chancellor’s footwear and see should you can run the UK economic system with the FT’s new Price range sport.
Right here’s what else I’m protecting tabs on right now:
-
Financial knowledge: The UK and Italy have September client inflation knowledge.
-
Outcomes: Abbott, Alcoa, Equifax, Kinder Morgan, Morgan Stanley, Prologis, United Airways, US Bancorp and Whitbread report.
5 extra high tales
1. Elon Musk has given practically $75mn to assist Donald Trump’s bid to win again the White Home. The Tesla and X proprietor made a number of multimillion-dollar donations through the third quarter to his political motion committee, in response to a federal submitting launched yesterday, giving the group a large finances to help Trump’s re-election bid.
2. Boeing has introduced plans to boost as much as $25bn in new capital and agreed a $10bn credit score facility. The transfer comes per week after S&P International Rankings warned of a doable downgrade of Boeing’s bonds to junk standing within the face of a crippling strike by its largest labour union. Learn extra on Boeing’s newest response to its troubles.
3. The US has advised Israel it must take “urgent and sustained actions” to enhance the dire humanitarian scenario in Gaza or navy assist from Washington might be in danger, in a uncommon public ultimatum to Benjamin Netanyahu’s authorities and an indication of rising frustration on the warfare’s civilian toll. Right here’s what the US is demanding.
4. Unique: Brussels plans to develop its powers over merger offers so as to cease “killer acquisitions” that pose dangers to start-ups in Europe and past, in response to individuals acquainted with the discussions. It might be the primary overhaul of the EU’s rule e book on mergers and acquisitions in a long time, however some officers are expressing issues concerning the deliberate reforms.
5. Italian Prime Minister Giorgia Meloni has stated her authorities is planning to boost €3.5bn from banks and insurance coverage firms because it seeks to plug a €9bn finances hole. Following a cupboard assembly final night time, Meloni wrote on X that the additional funds could be used to finance the general public well being system and enhance companies for these in want. Right here’s why monetary firms are within the crosshairs.
The Massive Learn
A frenzy of exercise led by Saudi Arabia’s Public Funding Fund has reworked the as soon as conservative kingdom into one of many world’s largest building websites and a magnet for worldwide consultants and contractors. However after nearly a decade of the frenetic tempo, Riyadh is starting to scale down on the spending spree as a sense of realism and pragmatism takes maintain.
We’re additionally studying . . .
-
NHS: The Labour authorities has promised to deliver the service into the digital age, however docs say the fundamental infrastructure first must be introduced as much as a minimal normal.
-
Cheapflation: Costs of cheap items have risen sooner than dearer varieties. Governments and companies at the moment are making an attempt to determine who accountable, writes Brooke Masters.
-
US politics: The brazenness of the nation’s politicians within the face of scandals is a defining characteristic of the period. Ed Luce asks: has America misplaced its disgrace?
-
4 funding errors to keep away from: In his new column, Jonathan Guthrie takes a have a look at good and dangerous monetary considering.
Chart of the day
The Worldwide Vitality Company has stated that an enormous improve in using air-con, pushed by rising incomes within the growing world and better temperatures from local weather change, may have one of many greatest and most unpredictable impacts on the world’s electrical energy grids within the coming decade.
Take a break from the information
On the island of Sant’Erasmo within the Venetian lagoon, a pioneering co-operative based by native cooks has established a kitchen backyard to create jobs and save the distinctive flavours of vegetables and fruit utilized in dishes prone to disappearing. Right here’s the place to partake within the metropolis’s farm-to-table revolution.
Further contributions from Gordon Smith and Benjamin Wilhelm
