the office of budget responsibility will give a report on any government plans from the mini budget at the end of this month. and really, the essence is that it was premature at to actually go with all of this ahead of time and then find that the markets which are the ultimate judge of fiscal discipline and, and plans for the, for the exchequer. they were obviously went into complete freefall and that thou, the questions are how on earth things can be put back on track. now, hunt presently is in the treasury, just near downing street and working out how he will put a plan together. he says he's not going rolling out. tax rises or certainly we're now talking about rises rather than guts. we're also talking about cuts in expenditure. so this is a complete, it makes a complete no listens really. of what truss had campaigned on in that internal election between in the conservative party. and now the british public have to face what he will is describing as difficult times. certainly it isn't brights. the prime minister is in the country a prime minister's residence at the moment, so she'll

for the leadership to present his fiscal statement supported, we hope and trust but the office of budget responsibilityat is the way we shall take not just the party, but the country out of the slightly unfortunate circumstances we find ourselves in. if mr. johnson was injected into that equation, there would be a significant number of conservative members of parliament, and i am most certainly one of them. of finding ourselves in a position to resign. we need unity, not division. >> there are some tonight that say that they would call a by election? >> my concern from the start of all of this has been the people that i represent and my country, not the conservative party. we are facing a situation where people are very frightened because of the increase in mortgage rates. small businesses repaying loans incurred during the pandemic. interest rates rise we are in the middle of a war in ukraine that we are giving support to. and there is the small matter of whether fuel prices and a cost-of-living increase. we have very serious constituency issues and national issues that we have to face up to. we need

there have been weak economic forecasts from the office of budget responsivity, £50 billion black holeto fail. we now know pretty deflected lesley —— we know... this is one of those things where perhaps there have been briefings, ground being laid for what is not going to be a very nice set of announcements in november and possibly beyond, as well, we are all being warned about these tough decisions to make but if it is a £50 billion black hole and they want to keep the triple lock on pensions, then major sacrifices are going to be made. �* ., ., ., be made. and important to point out that the briefings _ be made. and important to point out that the briefings ahead _ be made. and important to point out that the briefings ahead of _ be made. and important to point out that the briefings ahead of time - be made. and important to point out that the briefings ahead of time are l that the briefings ahead of time are part of the political calculations, something is coming out, ideas tested, because like so many things, not about this is about expectations, expectation is almost as important

customers of bulb moving to octopus, bailing them out with a $1.7 trillion loan but the office of budget responsibilitynted the total baler package would be to 2p. this still could save taxpayers millions. i 2p. this still could save taxpayers millions. i think it'd be good. _ taxpayers millions. i think it'd be good. for- taxpayers millions. i think it'd be good. _ taxpayers millions. i think it'd be good. for octopus| taxpayers millions. i think it'd be good. for octopus to take over bulb and relieve the taxpayer of the burden of running of the moment, also, make bulb customers give the more confident, comfort someone is running their business and looking after them in the best way possible. looking after them in the best way possible-— way possible. additionally, octo - us way possible. additionally, news has _ way possible. additionally, octopus has agreed - way possible. additionally, octopus has agreed to - way possible. additionally, l octopus has agreed to share profits if any are made from its new bulb customers with the government for up to four years. octopus will be one of the country's big

it will be accompanied by a full forecast from the office of budget responsibility. thought this could take place at the end of the month. would take place before the bank of england meeting which is next week but it has been delayed. i think the prime minister has an opportunity to walk us through why it's being delayed and explain what we can expect in about a month. lisa: and explain why it's important to come up with a conservative estimate and what it does to the budget rather than have something half baked. he has signaled more than that. jonathan: these are major moves, the guilt up 11 or 12%. live from new york this morning, we will talk about tech earnings with facebook after the close. this is bloomberg. ♪ lisa: elon musk is promising to close the acquisition of twitter by friday. he made the pledge and a video conference call with bankers investing in the deal. they are providing $13 million in debt financing. the pickup in chinese business activity did not change the country's grim economic outlook. care economy slowed in october. china's global trade and

but early this year, the independent office of budget responsibility predicted the total bailout packagewould be to £2.2 billion. this deal could save taxpayers millions. i think it'd be good. for octopus to take over bulb and relieve the taxpayer of the burden of running it for the moment. also will make bulb customers, give them more comfort that someone is actually running their business and looking after them in the best way possible. additionally, octopus has agreed to share profits, if any are made from its new bulb customers, with the government for up to four years. octopus will become one of the country's biggest suppliers and the company were keen to reassure customers. no—one will see prices going up as a result of the agreement. people should sit tight. for now, the service will carry on exactly as it does, provided by the same people. since the war in ukraine, energy bills are much higher, despite the government's energy price guarantee. that's due to end next april. so even though there has been some certainty provided with this deal, for consumers, what they pay in the fut

there have been weak economic forecasts from the office of budget responsivity, £50 billion black holebe

but early this year, the independent office of budget responsibility predicted the total bailout packageyers millions. i think it'd be good. for octopus to take over bulb and relieve the taxpayer of the burden of running it for the moment. also will make bulb customers, give them more comfort that someone is actually running their business and looking after them in the best way possible. additionally, octopus has agreed to share profits, if any are made from its new bulb customers, with the government for up to four years. octopus will become one of the country's biggest suppliers and the company were keen to reassure customers. no—one will see prices going up as a result of the agreement. people should sit tight. for now, the service will carry on exactly as it does, provided by the same people. since the war in ukraine, energy bills are much higher, despite the government's energy price guarantee. that's due to end next april. so even though there has been some certainty provided with this deal, for consumers, what they pay in the future remains unclear. ramzan kamali, bbc news. in sou

next monday, he may go for more time and get the verification from the office of budget responsibility through as well. but highlights for this ma'am, lo, youngest prime minister. since the 18th century, the 1st british asian, there are many aspects to this young prime minister that show that he is energetic . and we'll want to get more popular to quickly possible. but the so much he's up against that. it couldn't be a worse time to be the prime minister of britain than now. andrew, thank you very much. indeed, we're going to be checking in with you, of course as things progress over the next few hours, but for now under simmons in london. thank you very much indeed. oh, let me bring you some breaking news messaging service. what sab is upon facing a major outage across the world. thousands of users are said to be reporting problems. whatsapp is used by 2000000000 people globally. it's owned by met at the u. s. headquartered company. that also is facebook and instagram. the company's not yet said what's causing the disruption. sack lunch sits, rang has made land fallen bangladesh, brin

economic advisory council will in any way conflict with the bank of england, all the office of budget responsibility, the f. c a, the p r and all of our institutions. and they did we, that's a compliment, not work against any well, can i the only one who has spoken very wise in recent weeks about the issues that we face. i can absolutely give him that assurance. i want to be frank to make sure that i'm getting advice from fantastic institutions, like the treasury, the bank of england and the officer budget responsibility, but also advice that is independent of those institutions. because that is the way we will get the best result. rupert harrison in particular has enormous experience of running the treasury under georgia. osborne. yes, i think you'll make a very important contribution as well. his colleagues on the council and with respect to the markets, he's absolutely right to be cautious about what happens. they go up as well as they go down and no government can control or should seek to control the markets. what we can do is the things within our power, and that is a commitment, a very firm a

the british constitution are independent institutions to ignore, for example, the office of budget responsibility to ignore the normal ways in which the u. k. is governed, and that wasn't just cross, it was a continent continuation of a number of things which been happening over the past decade, but of course, particularly underbrush. johnson, to restoring laugh, i think, is actually in my view, even more important the economics to get back to governing us in a way that respects the traditions of the a power button. that makes britain a well governed society, a get a country in society. and it's normally at a conservative parking it's fans or mistake of doing that on the economic side. um, i think that what hunt is saying, what is causing the scaling back to a very large extent, these unfunded tax rises up. we'll go some way towards a reassuring financial markets because it makes it less likely that year and that it will restore the credibility of the government's fiscal policy. on the other hand, he's also talking about cost in public spending, and that's going to be very difficult indeed, polit

of what's in the budget effectively. it isn't really budget and that is from the office of budget responsibility. and that's the is also ha, perhaps going to be adjusted by his actions because he may well want to change things. this is a prime minister who intends to fix the economy. that's going to be an immensely long job with people suffering from high inflation. high interest rates and lives that really are put under a big economic test. right now. it's 11 g m t that's mid day in london, you're watching al jazeera and the coverage of a richie soon act who has become officially the you case in new prime minister, cynic met king charles the 3rd a buckingham palace where he was asked to form a new government cynic is the 1st british asia and 1st hindu to lead the united kingdom. he's also buttons, 5th, prime minister in 6 years. let's go back to andrew simmons who's in law outside downing street where richey cynic, has just been speaking for the 1st time as officially. the you case in new prime minister. one of the things that people are going to be paying attention to is how he intends to deal

we really need to see this report from the office of budget responsibility that will sum up the stateu.k. government finances. that's the only thing investors can really use to judge how sustainable that expansion is. looks like it will come out at the end of november now. that was the big thing we saw from fitch last night, they need to see that report. francine: i looked at the latest mortgages, i had to sit down with the drink of my choice, vicki mortgage rate climbed above 6% for the first time. are you hearing about possible defaults? >> 6% is the red flag level for the banking industry, once it goes above that it brings into question the health of debt. lloyd's, natwest and other companies are still down 10% because they are worried these mortgages will go bad. there can actually be big provisions booked at the next earnings season. francine: thank you for your team to keep on top of this. u.k. markets, how have they responded to the u-turns by the government? >> the u-turn was kind of a strange one. it showed us of a government can be reined in a bit, kwarteng and truss have be

the office of budget responsibility and... nobody believes in this plan.published and still have not published any assessment from budget responsibility means that what we are seeing is magical thinking. we are not seeing an objective assessment. they sacked the permanent secretary at the treasury on day one, the chief official of the treasury, so it looks like they are simply driven by some internal light, which has not yet had anything to do with reality, so why should the markets have confidence in them? lam i am puzzled by it. one little thing, - the postponement report from the obr into the end of september... i the end of november. how much more bad news do we want? _ there is an old saying which, if you're in a hole, _ you should stop digging. they continue to dig themselves furtherl and further away from reality. you think november 23 is not going to hold? it could not. the pressures of the market and all other interested - parties will force them . to revise the date again. and altogether, the government seems to be at the mercy- of forces that th

they didn't listen to the office of budget responsibility.h because theyjust didn't want to hear any negatives about what they were planning to do, they sacked... kwasi kwarteng and sacked the chief, excuse me, the permanent secretary of the treasury, tom scholar, again, because he thought he'd probably give him advice that he didn't want to hear. they were just so determined to get these tax cuts through. but i would say, and this is a sort of sort of slight counterpoint to what beth was saying, that over many years, her opponents have underestimated her. right? and, you know, i mean, you know, let's be absolutely clear. she did really badly in the first round, for example, of the parliamentary vote. she may have only ended up with about a third of mps supporting her, but she got through to the final round and she basically humiliated rishi sunak within a couple of weeks. but... i just... but all the way along her career, basically, particularly men, have underestimated her and mostly she's seen them all off. so, i'm not saying, however, tha

it will also come with the forecast from the office of budget responsibility. the obr had been gagged, and that had undermined the credibility of the budget in the eyes of the market, but the issue remains that the government is doing a massive amount of borrowing not just for energy bailouts but longer-term for tax cuts which are permanent. at a time when you have got high inflation and high interest rates, and it's not clear when the obr is going to agree with the chancellor about how much growth they are going to stimulate. dani: all of that feeding into this bond market rally, hoping for more u-turns to come. let's take a look at key things we will watch out for. 10:00 a.m. we will have euro area ppi, 3:00 p.m. we will have manufacturing from the data data -- data from the u.s.. manus: a ecb governing council member will speak at a conference in luxembourg. later, a number of head presidents are speaking across the u.s. new york's john williams, really important, dallas, cleveland's loretta mester, mary daly all due to speak. i wonder where the reaffirmation

over the medium-term, based on the judgment and economic forecasts of the independent office of budget responsibilityuld like to thank the obr whose director i met this morning and the bank of england whose director i have met twice. i fully support the vital, independent roles, both institutions play which give markets, the public, and the world confidence that our economic plans are credible and rightly hold us to account for delivering them. i also want more independent expert advice as i start my journey as chancellor, so i am announcing the formation of a new economic advisory council to do just that. this counsel will advise the government on economic policy with four names announced today. rupert harrison, former chief of staff to the chancellor of the exchequer. and three others. mr. speaker, mr. speaker, we remain completely committed to our mission to go for growth but growth requires confidence and stability which is why we are taking many difficult decisions starting today. we do need realism about the challenges ahead. we must never fall into the trap of pessimism. despite all the challe

of england about her many budget plans. she sacked a top treasury official. she was refusing to work with the office of budget responsibility is an independent watchdog that ensures transparency and truth telling when it comes to government text and spend, so behaving like a medieval monarch. no credibility left. there was simply no alternative except for her to go. >> now that were going to be hearing about a whole host of other candidates over the next few hours, and certainly days we are watching, the idea of storing trust -- how does that play out? >> we simply don't know what is to come. where will we be a week from now? will we have a serious, honest and knowledgeable prime minister? or will we have, quite frankly, another clown? whoever emerges as the new leader is -- knows they cannot win the next election, and on the one hand, and they have nothing to lose. so, i think the volatile time will come, and i do think it will take we will rebuild stability. >> there's a credibility factor, but it comes to stability, i don't know how much it is pinned to issues with the war of ukraine, in the ensuing energy crisis. the is

office of budget responsibility, which will release the assessment of the costings that will look like it will come forward many weeks just to give the markets a bit more confidence that this government is not fatally damaged and the chancellor has credibility with markets and they will come up with the financial plan that works for markets and for the economy and for the british people back to you. >> geoff, we made a big deal of the about-face because it is an about-face the top end tax rate they were talking about is not like it was going to raise a lot of money. it is not like it is going to be a massive impact to the overall budget put forward it was more about whether or not it was an indication of the strength and like you point out, credibility of the truss government that's the reason why people are talking about it so much not necessarily the dollar impact of the tax cut. do you feel as though the truss team have that influence within the party to push through the agenda >> reporter: i think the jury is still out on that question we spoke to a grandeer of the conservative par

they also did not let the office of budget responsibility do a forecast. these factors have to be thought about, but it is, of course, a warning to governments around the world dealing with the cost of living crisis. alix: absolutely. really great reporting all morning long. and thank you for the cap reference as well. we will be back to you in the next hour. s&p up by 0.6%. overnight, the flattening of the long end of the treasury curve is showing signs of exhaustion, and treasury yields may peak by year-end. 10-year now up by about 10 basis points. that leads us to the question of the day. whether you are looking at u.k. politics or the equity market or the bond market, exhausted? i know guy is. joining us now is mike wilson, chief strategist at morgan stanley. we have seen this stealth rally underway for a few days now. is it exhausted, are you exhausted at this point? >> i think everybody is exhausted, that's for sure. even in bull markets, i think people get exhausted. this has been a particularly trying year because nothing has worked. even commoditie

we had a meeting this morning between the budget of the office for budget responsibility and the chancellorrime minister. there is so much pressure for analysis for the obr to be published, we are not going to get it until november, but there has been that meeting. one of the things bothering the people in the financial markets is that chancellor declined the obr of an assessment of the governments finances and what the impact would be of its proposed policy changes. they do see that as a kind of an indication of, from the obr, that the government's financial sums add up as being a very reassuring thing if the government can get back from obr. thank you. let's bring in fiona. confidence is key. market confidence is important. explain why it works and why do they all seem to work as a pact? there a saying that fear and greed moves the markets. an over simplification. fear has been reflected in the sharp falls that we saw and the other thing to take into account, you have that whole concept of fear and greed and then you've also got the idea of when certain key levels for key price points are

they also previously not necessarily followed the office of budget responsibility that is liz truss and her former chancellor and now former prime minister effectively rishi sunak would put budget front and center with the economic policies. >> we will watch the story s arabile, i appreciate your time today. >>> still on deck, a win for president biden and student loan forgiveness program as one supreme court justice says it can proceed for now. we're back after this. >> announcer: today's big number 12.4%. that was the month over month drop in container imports into imagine u.s. ports last month according to data analysis group data that is the sharp decline in what is typically the peak shipping season. to support that village. ♪ ♪ i am peter akwaboah, chief operating officer for technology, operations and firm resilience. when you think about diversity, the employee network group is fundamental to any organization to provide a community and a belonging environment for the employees. they provide an avenue to support employees and ultimately it leads to retention of the best and brigh

mistake to fly blind and to do these forecasts without giving people the confidence of the office of budget responsibilityms add up. the prime minister's recognized that. that's why i'm here. >> meantime, the opposition leader describes the pm's sacking of quartang on friday as "gross chaos." saying liz truss and her conservative party, quote, no longer have a mandate from the british people. >>> with the many u-turns and political detours in the uk in the last few weeks, it might be hard for some of us to keep up. let's get clarity from john rental. he is the chief political commentator at the "independent" newspaper and visiting professor at king's college, london. i hope you can shed light for us on what is going on in the uk. british finance minister jeremy hunt promising to restore economic stability, but can he repair the damage? >> well, he can't totally repair the damage. some of the damage is lasting. this is the biggest u-turn in british politics in my lifetime. and it comes from a prime minister who models herself on margaret thatcher, who of course said that she wasn't going to u-turn, and she

of the office _ once again? that depends on what comes out of the office for - once again? that depends on what comes out of the office for budgetj comes out of the office for budget responsibilityependent arm of the government. if that backs up at the chancellor has put forward then there is hope for the government. if not, then they are on shaky ground and this could be a slippery slope into more economic turmoil in the future. just to take us back and remind our viewers, what was the thinking behind his much criticised plans? i think the economic rationale was to boost the money into the economy, it's what's called an economic injection, so by releasing money that would have been taken out in tax, it would've been spent. this is a classic of trickle—down economics. however, my personal view is that what is needed here is for people on low and fixed incomes to have those tax breaks because they would spend more of that money not less of it as the higher income earners would do because they've got all the luxuries that they need. it was some misguided thinking here in my view, but it was based on this notion of trickle—down economics. but it was based on this notion of trickle-

i'm going to do things the old way, using the office of budget responsibility, taking forecasts seriouslynd the need to balance the books in the medium term. so that has reassured the markets. what jeremy hunt absolutely hasn't done yet is give any indication of where -- of how he's going to address what he himself calls these terribly difficult decisions that face him. are we going to pay for our debts by raising taxes? are we going to pay for them by cutting public spending? those are the real political decisions that we're going to have to wait for his budget to see how he intends to address. >> and we know that they're beyond the markets here in the uk, the unstability here, there are global efforts buffetting the uk market at the moment. one of course is the war in ukraine. is he going to -- is sunak or hunt going to have to recommit to the on going commitment spending on defense for ukraine? we know that in the past, for instance, defense minister ben wallace has come out and said that is absolutely necessary that, you know, they continue with that. can we expect sunak to keep that

of what's in that budget. effectively. it is a milly budget, and that is from the office of budget responsibility. and that's the is also perhaps going to be adjusted by his actions because he may well want to change things. this is a prime minister who intends to.

don't forget, normally when such things are announced that a budget time we get the independent view of the office, the budget responsibility. and we never got that. i'm the only leaped out later that they were talking of figures in i 72000000000 pounds. so why was it going to come from? so i think what went wrong is she was very ambitious with what she was giving away with absolutely no idea as to how the company might piper. so we have no idea yet who is going to succeed her. but what does that person have to do to regain the trust of the markets? well 1st of all, i think they have to regain the trust of the party because the policy is very much divided and it would probably be a simplification to say it was dividing to. there are lots of different factions. so i think they need to bring the policy together and that might in a sense inject some stupidity because markets that like uncertainty and instability and that is bolt the u. k. government is characterized by now. so i think, you know, they need to calm down by that they, they need to unite behind, delayed, they're not coming out to the conservative party members. ag

november, the 17th is when they publish that statement, they also make sure that the office of budget responsibility, which is the a really that the checking zone for all of the decisions when the balance of the box has to be made and everything is verified, there will be a full forecast from that institution which work separately from the treasury. and that is the idea of that is to be a more accurate with the forecasts. and also this is interesting. this is a point that's being made strongly a, by dining streets, that the cabinet has to be informed fully of this and it has to be confirmed. so here we're getting a style of leadership. that means it's got to be things have got to be discussed in the round rather than just by dictates. so in essence, we have now a cabinet together with which has been a fair shake up. but familiar faces of there are no such sudden fresh faces or, or any necessarily fresh dynamism. and there is one point which is very controversial and that is the appointments of so ela, a brahman to the post of home secretary, because she was actually excluded from that job. only 6 da

the office of budget responsibility needs to publish its numbers.somehow. we touched on this earlier in the week. the policy institute came up with 60 billion in spending cuts the u.k. government would have to do to fund this. that is a very challenging number because you want to raise defense spending. the pool spending you can actually cut becomes very, very small. it is local government services, work benefits, can you really cut them by 20% to fund tax cuts for companies and wealthy households? is that politically sustainable? the government will have to potentially change course on tax cuts and energy. shery: given challenges in the u.k. economy and volatility in the markets, how does this code or the ecb and tightening as well? christian: on september 23, the u.k. government comes up with a big budget. six days later, the german government announces a similar package. and nothing happens in the markets. there is a credibility deficit that the u.k. has that the continent doesn't have. now that germany said it and has arguably given the rest of

of october when we should, by that time, you know, then how is independent view of the office, the budget responsibility. you know, what is this all going to cost even with tracking measures? because there's been some, quite horrendous estimates coming out of place like the fiscal studies. so i think, you know, this is the sort of a type of proof that she's remove the chancellor. and of course what she's done by replacing it with jeremy. jeremy hummed back, she will not say where i was initially. i actually had none of his back in her cabinet. she now has to one in the very senior position of chancellor. so possibly that might bring more and peace on to her side because the problem is not a popular in the countries. she's deeply unpopular and the conservative party itself. she never have the backing of the majority of them. but you do think she will manage to hang on as prime minister until the end of october until the end of the year or a little longer than the i think she said to landmark tyver, i'm in person. i think she'll still be there at the end of the year, but i, i don't see it being a long liv

including our independent bank of england and office for budget responsibility. we will have a strong fiscal anchor with debt falling as a proportion of gdp over the medium-term. that is the conservative way. [applause] but today we face new challenges. in addressing those challenges we will act in a fiscally sustainable and responsible way. that is why shortly, we will publish our medium-term fiscal plan, setting out our approach more fully. it will set out how we plan to get debt falling as a percentage of gdp over the medium-term, and i have asked for a fiscal forecast alongside the medium-term fiscal plan. there is no path to higher sustainable growth without fiscal responsibility. conservatives have always known this, and we know it still. it's because we are conservatives that we remain absolutely committed to being serious custodians of the public purse. this is what defines us and separates us from the labour party. a conference to grow the economy. we really do need to do things differently. we know that it is our time to prescribe much of our economic gr

of england could put it into their own broadcast -- forecast. on halloween, we get a budget from the u.k. together with the office of budget responsibility.b.o.e.. lisa: what does the market want? because if this does not get delivered the way they want, the markets will not respond well. what they want is to push out some of the expected support the administration has said. even as the administration comes out and says they will increase support. for example, with inflation-adjusted pension payments, how are they going to pay for it, given the pushback has come? jonathan: the fed will continue to be tone deaf and keep hiking. they want fiscal discipline. what is funny about the situation in the u.k., they have been widely criticized by everyone about the policies the chancellor came out with. in 12 months time, when many of these economies are in recession, some of these policies will be the policy that a lot of people -- policies that a lot of people are pushing for. lisa: some people say in 12 months time, there will be more appetite for it. other people say yields will still be high. you will still have high inflation. perhaps not. th

of a calibrated fiscal package. the u.k. has a very strong institution. we are happy the office a budget of responsibilitieso be involved. the bank of england is dealing with financial stability risks. we also understand they are keeping to their inflation commitment. >> cannot happen elsewhere? what is the risk of some -- something like the u.k. happens to the rest of europe? >> the 2023 is going to be a very difficult year. we been advocating strongly that monetary policy and fiscal policy needs to be aligned. then monetary policy tightening, it should not be underlined -- undermined by fiscal policy. that will be a very difficult policy course to take given the cost of living crisis. it will require those countries which have very limited space and need to reduce that to have their cost-of-living packages offset in their budget and all others who have space to be extremely careful in order not to provide -- demand burden. >> how much longer can fiscal policy continue to compensate for stresses and shocks we are seeing? at some point, do you think we will be able to continue to do that? do you think we ha

the negative briefing against the independent bank of england, the sidelining of the office for budget responsibilityone, day two of trussonomics we have the sacking of the top treasury civil servant. together that looked like a package of putting one side of the checks and balances, so hairfood takes over, will they start to bring those institutions back into play? i would argue that jeremy hunt, the chancellor, has already done that, but we also need a figurehead who both supportsjeremy hunt to supports jeremy hunt to continue supportsjeremy hunt to continue as supports jeremy hunt to continue as chancellor, but also be aligned with those principles of the uk's twin deficits on trade, borrowing, i only supported by international investors if they feel those checks and balances are in place and therefore the rhetoric you hear over the next few days from the leadership candidates and the one or two that emerge from the pack, is really very important for the ongoing stability of financial markets. �* . ~ markets. the bcc were talking about labour _ markets. the bcc were talking about labour and _ mark

are at it again today, trying to trash the bank of england, along with having excluded the office of budget responsewell as prices generally. i think the relationship between the government of the day and the bank of england is absolutely critical. what you cannot do is trash it or just ignore it because they will pay a heavy price and i don't mind if the government is in trouble but i do mine very much what is happening to our country because our credibility has been damaged. what we are going to have to pay in the future because of high prices and so on, that is hugely damaging to our growth prospects stop one of the biggest challenges this government is t in: biggest challenges this government ist in: to biggest challenges this government is trying to grapple _ biggest challenges this government is trying to grapple with. _ biggest challenges this government is trying to grapple with. the i is trying to grapple with. the business there was only too keen to mention the chaos that has been seen in the tory party. in a seven days since we spoke to the prime minister in birmingham, it feels like chao

office saying that tress' spokesman said that the chancellor said he will meet with all secretaries of state this week to decide on the future spending planswhich wil then be submit to the office for budget responsibilityt of the budget that was put out on september the 23rd and that was not fool lowed through and the market felt it undermined the office of budget responsibility which would then have put forward on whether it was feasible to put through those unfunded tax cuts and the uk prime minister held a political cabinet call at 10:00 this morning, as well the government is committed to the growth agenda as a note that they've been cystently been saying and the finance minister said that because of of a worsening, global economic situation government is adjusting its program while remaining committed to the long term reforms, but completely undoing everything that was set forward by kwasi, former uk prime minister and liz truss >> the fiscal plan was plenty to be brought forward today and we are now expecting jeremy hunt to put forward a little bit more of a statement to members of parliament here at the house of commons behind me and that's set to happen at a few hours' time at the same time we

in no way the economic advisory council will in any conflict with the bank of england or the office for budget responsibilitylutely give him that assurance. iwant, to face? i can absolutely give him that assurance. i want, to be frank, to make sure i am getting advice from fantastic institutions like the treasury, the bank of england and the office for budget responsibility, but also advice that is independent of those institutions because that is the way we will get the best result. rupert harrison in particular has enormous experience of running the treasury under george osborne over many years. i think he will make a very important contribution, as will his colleagues on the council, and with respect to the markets he is absolutely right to be cautious about what happens. they go up as well as they go down and no government can control or should seek to control the markets. what we can do is that things within our power, and that is a commitment, a very firm and clear commitment, to fiscal responsibility.— fiscal responsibility. thank you, mr seaker. i fiscal responsibility. thank you, mr speaker- i see _

they have outcast tom scholar, the top civil servant of the treasury, they sidelined the office of budget responsibilitye fiscal watchdog, and throughout kwasi kwarteng's's time as chancellor, he has been almost flippant about the markets. member he said they will react as they will. the other ministers have said what is going on in the markets is due to the international context, the war in ukraine, fed hikes, dollar strength. anyone with a bloomberg terminal can see that there has been a particular effect on top. as i say, it is not just a kwarteng affect, it is very much a truss affect and that leaves the problem even if she cuts kwasi kwarteng out -- out. jonathan: this bond market is back in a big way. we have heard it from a few guests including mohamed el-erian on this program and in the bloomberg business:. vigilantes are back and the vigilantes claimed a couple names already. lisa: and who is next? at one point will you see this imposed restriction in terms of how much debt, number of different nations sell. this comes a time when you have a lot of nations that want to plug fiscal gaps by selli

budget should be reversed because they need to set out a proper plan. we have to have the proper plan. we have to have the proper independent oversight of the office for budget responsibilitygovernment. but are you not in danger of asking for _ government. but are you not in danger of asking for something | government. but are you not in - danger of asking for something that is not deliverable? which is that effectively you are saying, make these changes and do them now, but we know that the process which you're asking for, which involves reference to the office for budget responsibility, something the conservative set up, an independent body to look at this and then go back and say, "your numbers add up, your numbers don't add up, we need to change or not change things", that takes days and weeks. you are putting pressure on them which they can't deliver and that will therefore damage market credibility further, is that really a responsible thing for the government's main opposition party to be doing? you don't want to inherit a mess if you form the next government, do you? but inherit a mess if you form the next government, do you?— government, do you? but this is a cris

tax giveaway remains, and the story remains that we have not had forecasting for the officer of budget responsibilityinable fiscal policy, debt rising over time. from that point of view, it is pretty much as we were. the pound has rallied today. _ pretty much as we were. the pound has rallied today. you _ pretty much as we were. the pound has rallied today. you seem - pretty much as we were. the pound has rallied today. you seem to - pretty much as we were. the pound has rallied today. you seem to be l has rallied today. you seem to be saying the underlying reasons for the fiscal instability are still there. do you think this buys the government breathing space of the market or will the markets be looking to see a lot more answers very quickly? it looking to see a lot more answers very quickly?— very quickly? it seems to have brou . ht very quickly? it seems to have brought a _ very quickly? it seems to have brought a bit _ very quickly? it seems to have brought a bit of— very quickly? it seems to have brought a bit of breathing - very quickly? it seems to have i brought a bit of breathing space, one

organisations like the bank of england, like the office for budget responsibility, like the imf. e criticism stretches way beyond westminster. 0n the other side of the pond, confidence in the uk seems to be melting away. | the idea of cutting taxes on the i super wealthy at a time when... anyway, ijust think... i disagree with the policy, - but it's up to great britain to make that judgment, not me. it is highly unusual for the leader of the free world to speak out like this. jeremy hunt is preparing a menu that has very little sweet on it. instead, he can ask for us to swallow tax rises and public spending cuts. i'm going to be asking every government department to find further efficiency savings. can you today rule out dumping the other tax cuts that liz truss has promised people? i'm not taking anything off the table, i want to keep as many of those tax cuts as i possibly can. work now gets away in earnest on the economic statement due a fortnight tomorrow. but at just five weeks in, many conservatives think the liz truss administration is already beyond repair. peter saull, bb

acknowledgement of problems with the many budget and of course the u—turn that we have been discussing today of the scrapping of the 45p rate. the decision revealed by the office for budget responsibilityof tough decisions which is basically how you make the numbers add up. just to reiterate that we understand that the government is to pull forward its long—awaited debt plan from late novemberfor that although we don't have a specific date to give you at the moment it could certainly occur this month. we will bring you more on that as we get it. and we'll find out how this story and others are covered in tomorrow's front pages at 10:30 and 11:30 this evening in the papers. our guestsjoining me tonight are dame ros altmann, who's a former pensions minister, and the features writer for the independent, james rampton. the uk is facing "a significant risk" of gas shortages this winter, according to the industry regulator, which could have an impact on electricity supplies. ofgem says due to russia's war with ukraine, there is a possibility the uk could enter a "gas supply emergency". this would lead to supplies being cut to power stations which use gas to generate the country's electricity

it is these institutions, of course the independent bank of england, the office for budget responsibility, the engagement of the parliament, the press gives the u.k. a strength in economic policymaking. our message to everybody not just to the u.k., to everybody at this time, fiscal policy should not undermine monetary policy because if it does it, then the task of monetary policy becomes only harder. it translates into the necessity for further increase of rates and tightening financial conditions. don't prolong the pain. make sure that actions are considerate and consistent. i do believe that it is correct to be led by evidence so if the evidence is that there has to be a recalibration, it is right for governments to do so. the bank of england, there was a risk to financial stability. the bank of england addressed it. >> let's go to argentina. reporter: thank you. argentina has passed to reduce on its ims -- imf program but inflation has gone up. what do you think is the best case scenario argentinians can hope for going forward with this program and the imf has been very accommodating

framework which enhances growth in our country including our independent bank of england and office for budget responsibilitywe will have a strong fiscal anchor with debt falling as a proportion of gdp over the medium-term. that is the conservative way. [applause] but today, we face new challenges. and in addressing those new challenges, we will act in a fiscally sustainable and responsible way. that is why shortly we will publish our meeting term fiscal plan, setting out our approach. it will set out how we plan to get debt falling as a percentage of gdp over the medium-term. i have asked the obr to publish a full economic and fiscal forecast alongside our medium-term fiscal plan. there is no path to higher sustainable growth without fiscal responsibility. conservatives have always known this, and we know it still. and it is because we are conservatives that we remain absolutely committed to being serious custodians of the public purse. this is what defines us and separates us from the labour party. conference, to grow the economy, we really need to do things differently. we know that it is our towns and ci