after liz truss's mini budget that sent mortgage rates soaring and the stability that businesses needr doing business in britain. the big factor here is, of course, what's happening in the white house. with the likelihood of tariffs being levied on g7 and western allies if donald trump tries to levy them on europe and the uk. will the uk retaliate like they did last time? let's not get ahead of ourselves. no tariffs have been levied on the uk. and i look forward to working with the trump administration and the new us treasury secretary when he's confirmed shortly. i mean, americans are notjust using trade tariffs economically, they're using them as diplomatic leverage over greenland and things like that. is there... i mean, this is a different thing, isn't it, that you need to respond strongly to. when president trump was last president of the united states? trade between the uk and the us increased. i have no doubt that that can happen again in the interests of both of our economies. a 26—year—old man has admitted murdering three members of the family of the bbc racing commentator, j

the bedrock of stability that families need after the liz truss— families need after the liz truss mini budgetage rate soaring and the stability businesses needs so they— stability businesses needs so they understand the cost of capital _ they understand the cost of capital to doing business in brilaih _ capital to doing business in britain. , ., , britain. the big factor here is what's happening _ britain. the big factor here is what's happening in - britain. the big factor here is what's happening in the - britain. the big factor here is| what's happening in the white house with the likelihood of tariffs being levied on g7 and western allies. if donald trump tries to levy them will the uk retaliate?— tries to levy them will the uk retaliate? �* , ., ., ., retaliate? let's not get ahead of ourselves. _ retaliate? let's not get ahead of ourselves. no _ retaliate? let's not get ahead of ourselves. no tariffs - retaliate? let's not get ahead of ourselves. no tariffs have i of ourselves. no tariffs have been — of ourselves. no tariffs have been levied on the uk and i look— been levied on the uk a

him that part of this was the inheritance this government is having to deal with from the liz truss mini budgethi sunak�*s government. this is what he said in response to that criticism. the first thing we did in the government— the first thing we did in the government was— the first thing we did in the government was to - the first thing we did in the government was to talk - the first thing we did in the government was to talk the economy— government was to talk the economy down,. _ government was to talk the economy down,. they- government was to talk the economy down,. they then | government was to talk the - economy down,. they then ramped up economy down,. they then ramped up all— economy down,. they then ramped up all these — economy down,. they then ramped up all these taxes _ economy down,. they then ramped up all these taxes on _ economy down,. they then ramped up all these taxes on business - up all these taxes on business which — up all these taxes on business which has _ up all these taxes on business which has had _ up all these taxes on business which has had the _ up all these t

with liz truss in the mini budget. markets will react if they think you are likely to accelerate inflation. you will see that in interest rates, movements, spreads, and so forth. i don't have the nt is the right word, but i do think it's a right way to attribute policy when you think about inflation. investors and traders will be walking -- watching for heightened inflation risk if they decide the trump republican policies are likely to push inflation up. scarlet: do you see the 10 year going up as t. rowe price has warned? stephanie: anything is possible, but i'm not looking to see that sharp of a movement. scarlet: stephanie, always appreciate you joining us, thank you for coming into the studio. stephanie kelton, stony brook or. coming up, new alternative to cable after fumo in disney announced they would combine live tv business sees -- businesses. this is bloomberg. ♪ so, what are you thinking? i'm thinking... (speaking to self) about our honeymoon. what about africa? safari? hot air balloon ride? swim with elepha

. and mortgage truss mini budget which sent borro spiralling ford mortgage truss mini budget which sent economy and foundationsofrour'ecohomyrahd �* the finances that repair the public finances that we inherited. to restore and create the stability and create the for growth and conditions for growth and investment. i set out a conditions for growth and inves rules. i set out a a; conditions for growth and inves rules which out a a; fiscal rules which are non—negotiable and will always be met. we began to be met, we beganto rebuild our and our the start pro-ramme of reform. i 7 reform. i capped the —| and are rate of corporation tax and are extended our generous capital —=e for77 duration of allowances for the duration of this parliament as the cbi and z 777366 77 are; 7 77 7 777173c7c77 are; at 7 777173c7c77 are; for.7and 7 "we 77 are; for.7and | the bcc have called for. and i protected working people, after a,,,, of living a cost of living crisis. by freezing fuel with freeaing'tuelrrduty with no their national income tax or 7 wcme taxvat. insurance, income tax or vat. but taking the r

they highlight a report stating the economy, they say, actually grew faster after the mini—budget. trussnding that sir keir starmer stops repeating the claim or face further legal action. farmers are voicing their frustrations and protesting outside this week's oxford farming conference, with the government facing mounting criticism over their policies. concerns are growing about tax changes and a lack of support, with many in the agricultural community saying they feel overlooked. in his speech to the conference earlier, the environment secretary, steve reed, unveiled labour's long term vision, including a 25 year farming roadmap focusing on, he says, boosting profitability and ensuring food security. his speech follows strong backlash, though, from farmers over last year's budget, which included and introduced inheritance tax for agricultural businesses worth more than £1 million. weather, news and travel chaos continues to sweep across the uk as heavy snow and winds have caused widespread disruption. temperatures plunged to —11 c last night, with more snow and ice warnings still in pl

liz truss's mini—budget the conservatives mini—budget crashed, the economy sent mortgage rates spirallingut pensions in peril. i will never play fast and loose with the public finances because when you do so, you put family finances at risk in their clamour to cut taxes for the richest. they crushed the economy. >> well, she doesn't really have a clue, does she.7 read >> well, she doesn't really have a clue, does she? read rachel is now facing a government debt crisis all of her very own last week. the cost of borrowing reached the highest level it has been this century, surpassing the days of the truss—kwarteng mini—budget. debt to gdp is now over 100%. that means our debt is larger than our economy. for the first time since the 1960s, which is all a bit of a problem because we've found that the gilt market is the ultimate measure of confidence, and confidence is evaporating. and instead of focusing on her job and answering questions at home to reassure the markets over the weekend, she swanned off to red china to perform a ceremonial kowtow in the hope that it would yield a paltry £600

the dispute focuses on the aftermath of truss's mini—budget in september 2022, which of course causedt turmoil but did not lead to an economic crash, according to her team. they highlight a report stating the economy actually, they say, grew faster after the mini—budget. liz truss is now demanding that starmer stops repeating the claims or face further legal action. and turning to the latest developments in los angeles, where they are battling a most, the most destructive wildfires in its history. with six blazes now raging out of control and five lives sadly lost, high winds of up to 100 miles an hour have spread flames across more than 26,000 acres and forcing more than 137 evacuations. it's also left hollywood streets in gridlock under thick smoke. firefighters face water shortages, taking supplies from swimming pools, while the mayor has defended cutting £17 million from fire budgets last summer. overnight, new fires also erupted in hollywood hills and in acton, with more evacuations now underway. royal news and the princess of wales is celebrating her 43rd birthday today, after p

everyone will remember, of course, that after liz truss's mini—budget, whether or not you believe thatwas caused by the mini—budget, inflation rates jumped very high, causing a lot of mortgage pain for people. it's not looking like it's going to jump that high again, but we are expecting a little uptick. >> why do you say that? it's not very far away is it. it's i mean it's more of a slow motion thing than it was. >> yeah. it's definitely not a pretty picture at the moment. and there'll be a lot of concern in the markets that rachel reevesis in the markets that rachel reeves is in action on a number of issues, particularly around employers. and i from the budget, which is a huge pressure point on lots and lots of small and large employers will not will not help. yeah. >> isn't this all about confidence? doesn't the economy operate on confidence. and you know, we borrow money. we lend money. we do things because we have some degree of confidence. and i just got this feeling there was that speech that starmer gave. the things can only get worse. i mean, they both look miserable. there's

what's been going on with the economy is any worse than liz truss's mini—budget of 2022.ord walney, the government's independent adviser on political violence and disruption, will be with me to discuss the latest on the grooming gangs, child rape scandal and why labour is still blocking a national inquiry. and we'll be looking ahead to president elect trump's upcoming inauguration and also reflecting on the devastating wildfires in los angeles, with jennifer ewing of the republican overseas group. another 90 minutes of punchy british politics lies ahead. don't go anywhere. but first, let's delve now into the sunday papers with former conservative special adviser james price, who joins me this morning. james, lovely to see you. good morning. right. great story on the front of the mail on sunday by the political edhon on sunday by the political editor, glen owen and his deputy, anna mikhailova, musk and cummings in plot to sabotage uk politics. so this is the suggestion that behind every elon musk tweet is dominic cummings, formerly or best known perhaps as boris johnson's

how does this compare to the bond market, the reaction to liz truss�*s mini budget in 2022?e chart here. the rise in recent weeks was not as sharp as in 2022 but of course now it is at a higher level thanit course now it is at a higher level than it was back then. so why does this matter? essentially, this blue line determines the rate at which the uk government can borrow money and the rate it has to pay on its debt bill. so the rise in this sense the budget last year is estimated to debt bill. so the rise in this sense the budget last year is estimé blue o this matter? essentially, this blue line determines the rate at which the uk government can borrow money and the rate it has to pay on its debt bill. so the rise in this sense the budget last year is estimated to be projected to cost the uk government an extra £10 billion a year by the end of the parliament on its debt bill. don't forget that rachel reeves in her budget gave herself only about £10 billion of headroom against her physical rules. so unless this picture changes, rachel reeves could be faced with a choice of

in what way is labour any different from liz truss and her own mini—budget when it comes to borrowingts? now they're the highest level they have been for 27 years. so isn't rachel reeves guilty? in labour parlance of quotes crashing the economy? >> that letter that liz truss wrote to the prime minister asking for an apology should have been a letter that she wrote to every mortgage holder and householder in this country apologising for what she did. when you've seen what has happenedin when you've seen what has happened in the trends over the last week, they are mimicked by what is happening in the us and elsewhere. we are in line with what liz truss did was unique to our country here. now. our plan for change, of course, involves fixing the fundamentals of the economy, which is what we saw in the budget. but we've crucially, if we're going to break this desperate cycle that we've inherited of high taxes and low growth, we have to start investing in the industries of the future. we're doing that by housebuilding. we're doing that by investing in the energy sector for the future. and w

truss's lawyers have issued a cease and desist letter, calling the claim false and blaming it for damaging her re—election prospects. the dispute centres on her 2022 mini—budgetich caused market turmoil, though her team points to a report showing economic growth afterwards. >> rachel reeves has pushed this country to the brink of economic crisis through high taxes, high regulation and disastrous net zero policies. when i tried to fix these problems back in 2022, i was undermined by the economic establishment and i was forced to reverse the policies before they were even implemented. i was blamed for the ldi crisis, which the bank of england has subsequently admitted was their fault. >> downing street says the prime minister stands by his remarks, urging critics to ask the public about the impact on mortgages and inflation. now everton have sacked their manager, sean dyche, with immediate effect. in a statement, the liverpool based football club said under 18 seconds head coach and former player leighton baines and club captain seamus coleman will take charge of first team affairs on an interim basis. it's the second sacking of a premier league coach in under

truss's lawyers have issued a cease and desist letter, calling the claim false and blaming it for damaging her re—election prospects. the dispute centres on her 2022 mini—budgeth caused market turmoil, though her team points to a report showing economic growth afterward. downing street says the prime minister stands by his remarks, urging critics to ask the public about the impact on mortgages and inflation. and travel chaos continues across the uk as heavy snow and winds cause widespread disruption. temperatures plunged to —11 degrees overnight, with more snow and ice warnings in place affecting rail lines and airports. manchester airport was forced to close both its runways, and transport for wales has shut several rail lines due to damage from the weather. the health security agency has also extended its cold weather alert until sunday, warning of serious health risks. those are the latest gb news headlines. more in half an hour for the very latest gb news direct smartphone. >> sign up to news alerts by scanning the qr code or go to gbnews.com/alerts. >> thank you sophia. welcome to the show. we've got an absolute cracker ahead yesterday where our biggest

truss's lawyers have issued a cease and desist letter, calling the claim false and blaming it for damaging her re—election prospects. the dispute centres on her 2022 mini—budgetused market turmoil, though her team points to a report showing economic growth afterward. >> rachel reeves has pushed this country to the brink of economic crisis through high taxes, high regulation and disastrous net zero policies. when i tried to fix these problems back in 2022, i was undermined by the economic establishment and i was forced to reverse the policies before they were even implemented. i was blamed for the ldi crisis, which the bank of england has subsequently admitted was their fault. >> but downing street says the prime minister stands by his remarks, urging critics to ask the public about the impact on mortgages and inflation. those are the latest gb news headlines. now it's back to matt for the very latest gb news direct to your smartphone, sign up to news alerts by scanning the qr code or go to gbnews.com/alerts. >> welcome back to state of the nafion >> welcome back to state of the nation with me, matt goodwin. now, i said it would happen. and today it happened fo