Connect with us

Published

on

Jacob Rees-Mogg has declared his confidence in the governor of the Bank of England, but disputed that pension funds are at “systemic” risk.

Speaking to Sky News, the business secretary said “of course” he has confidence in Andrew Bailey, describing him as “respected”.

He questioned, however, whether there was a “systemic problem” with pensions after the Bank of England expanded its market intervention to help pension funds for the second time in two days on Tuesday by buying up index-linked gilts.

Bank confirms market support to end – politics latest

The Bank had warned of a “material risk to UK financial stability” with “fire sales” of assets if it did not act.

The business secretary said that on the whole, pension funds “aren’t at risk”, but added: “Some pension funds have taken some high risk investments.”

He told Sky News that the “rightly independent” Bank intervened to protect these “risky investments”.

More on Bank Of England

The Bank confirmed yesterday that its emergency support operation to protect pension funds would end this week.

Mr Rees-Mogg repeatedly refused to be drawn on whether the Bank was right to signal an end to its market intervention.

“I’m not going to criticise the Bank of England or the governor,” he said. “It is not for me to speculate on what the Bank of England is doing.”

He also insisted to Kay Burley that parts of the economy were in a “good state” as he admitted that after the economic turmoil of recent weeks his own mortgage payments have gone up.

“Mortgage rates have gone up for everyone who has a mortgage, and I have a mortgage,” he said.

“Any floating rate mortgages have gone up.”

Please use Chrome browser for a more accessible video player

Kwarteng’s options for national debt

‘Be careful about forecasts’

Earlier this morning, new Office for National Statistics figures indicated that the economy shrank by 0.3% between July and August, a fall from downwardly revised growth of 0.1% the previous month.

Mr Rees-Mogg urged caution in interpreting them.

“The previous quarter’s figure showed a contraction [and] was then revised to show economic growth. So, be very careful about how you interpret figures immediately after they’re released,” he told Sky News.

“It’s a small amount of a very large economy, but these figures are notorious for being revised afterwards.”

The business secretary also refused to indicate his own view on whether benefits should rise in line with inflation, an issue that has split the Conservative Party.

“We haven’t yet had the inflation figure on which benefits will be set. So, that is something that will be decided once the figure is available,” he said.

“Most predictions, most economic forecasts, turn out to be inaccurate rather than spot on. So, one has got to be careful about forecasts.”

Please use Chrome browser for a more accessible video player

Are we set for another era of austerity?

‘Routine decision-making’

Mr Rees-Mogg said the decision on benefits would be made once inflation figures come out.

“There is a process for making this decision,” he said.

“The statutory instrument has to be laid in November to put through the increase. That will be done in the normal way. This is completely routine governmental decision-making.”

In the Commons on Tuesday Julian Smith, a former cabinet minister, warned Kwasi Kwarteng, the chancellor, that the government must not balance tax cuts “on the back of the poorest people in our country”.

The government has already been forced to abandon plans to scrap the top 45p rate of tax in the face of a threatened revolt.

Click to subscribe to the Sophy Ridge on Sunday podcast

Liz Truss, the prime minister, will face MPs in the Commons on Wednesday for the first time since Mr Kwarteng’s £43bn tax-cutting mini-budget caused economic turmoil.

On Tuesday, the International Monetary Fund warned that Mr Kwarteng’s package of unfunded tax cuts was making it harder for the Bank to get soaring inflation rates under control.

The Institute for Fiscal Studies has warned the chancellor he will have to find £60bn in public spending cuts if he persists with his tax plans.

Continue Reading

World

IDF admits mistakenly identifying Gaza aid workers as threat – after video of attack showed ambulances were marked

Published

on

By

IDF admits mistakenly identifying Gaza aid workers as threat - after video of attack showed ambulances were marked

The IDF has admitted to mistakenly identifying a convoy of aid workers as a threat – following the emergence of a video which proved their ambulances were clearly marked when Israeli troops opened fire on them.

The bodies of 15 aid workers – including eight medics working for the Palestine Red Crescent Society (PRCS) – were found in a “mass grave” after the incident, according to the head of the UN Office for Coordination of Humanitarian Affairs Jonathan Whittall.

The Israeli military originally claimed an investigation found the vehicles did not have any headlights or emergency signals and were therefore targeted as they looked “suspicious”.

But video footage obtained by the PRCS, and verified by Sky News, showed the ambulances and a fire vehicle clearly marked with flashing red lights.

In a briefing from the IDF, they said the ambulances arrived in the Tel Sultan neighbourhood in Rafah shortly after a Hamas police vehicle drove through.

Palestinians mourn medics, who came under Israeli fire while on a rescue mission, after their bodies were recovered, according to the Red Crescent, at Nasser hospital in Khan Younis in the southern Gaza Strip March 31, 2025. REUTERS/Hatem Khaled/File Photo
Image:
Palestinians mourning the medics after their bodies were recovered. Pic: Reuters

An IDF surveillance aircraft was watching the movement of the ambulances and notified troops on the ground. The IDF said it will not be releasing that footage.

When the ambulances arrived, the soldiers opened fire, thinking the medics were a threat, according to the IDF.

The soldiers were surprised by the convoy stopping on the road and several people getting out quickly and running, the IDF claimed, adding the soldiers were unaware the suspects were in fact unarmed medics.

An Israeli military official would not say how far away troops were when they fired on the vehicles.

The IDF acknowledged that its statement claiming that the ambulances had their lights off was incorrect, and was based on the testimony from the soldiers in the incident.

The newly emerged video footage showed that the ambulances were clearly identifiable and had their lights on, the IDF said.

The IDF added that there will be a re-investigation to look into this discrepancy.

The clip is filmed through a vehicle windscreen - with three red light vehicles visible in front
Image:
The clip is filmed through a vehicle windscreen – with three red light vehicles visible in front

Addressing the fact the aid workers’ bodies were buried in a mass grave, the IDF said in its briefing this is an approved and regular practice to prevent wild dogs and other animals from eating the corpses.

The IDF could not explain why the ambulances were also buried.

The IDF said six of the 15 people killed were linked to Hamas, but revealed no detail to support the claim.

Please use Chrome browser for a more accessible video player

Bodies of aid workers found in Gaza

The newly emerged footage of the incident was discovered on a phone belonging to one of the workers who was killed, PRCS president Dr Younis Al Khatib said.

“His phone was found with his body and he recorded the whole event,” he said. “His last words before being shot, ‘Forgive me, mom. I just wanted to help people. I wanted to save lives’.”

Sky News used an aftermath video and satellite imagery to verify the location and timing of the newly emerged footage of the incident.

More from Sky News:
Israeli troops expand Gaza ‘security zone’
What happened to the ceasefire?

Please use Chrome browser for a more accessible video player

Aid worker attacks increasing

It was filmed on 23 March north of Rafah and shows a convoy of marked ambulances and a fire-fighting vehicle travelling south along a road towards the city centre. All the vehicles visible in the convoy have their flashing lights on.

The footage was filmed early in the morning, with a satellite image seen by Sky News taken at 9.48am local time on the same day showing a group of vehicles bunched together off the road.

Continue Reading

World

Volodymyr Zelenskyy takes swipe at US over ‘weak’ comment on Russian attack – as Ukrainian drones strike factory

Published

on

By

Volodymyr Zelenskyy takes swipe at US over 'weak' comment on Russian attack - as Ukrainian drones strike factory

Ukrainian President Volodymyr Zelenskyy has hit out at the US over its “weak” response to lethal Russian attacks on his hometown on Friday.

President Zelenskyy posted a lengthy and emotional statement on X about Russia’s strikes on Kryvyi Rih, which killed 19 people.

Meanwhile Ukrainian drones hit an explosives factory in Russia’s Samara region in an overnight strike, a member of Ukraine’s SBU security service told Reuters.

In his post, President Zelenskyy accused the United States of being “afraid” to name-check Russia in its comment on the attack.

“Unfortunately, the reaction of the American Embassy is unpleasantly surprising: such a strong country, such a strong people – and such a weak reaction,” he wrote on X.

“They are even afraid to say the word “Russian” when talking about the missile that killed children.”

America’s ambassador to Ukraine Bridget Brink had written on X: “Horrified that tonight a ballistic missile struck near a playground and restaurant in Kryvyi Rih.

“More than 50 people injured and 16 killed, including 6 children. This is why the war must end.”

Please use Chrome browser for a more accessible video player

Strike on Zelenskyy’s home city

President Zelenskyy went on in his post to say: “Yes, the war must end. But in order to end it, we must not be afraid to call a spade a spade.

“We must not be afraid to put pressure on the only one who continues this war and ignores all the world’s proposals to end it. We must put pressure on Russia, which chooses to kill children instead of a ceasefire.”

Grandmother ‘burned to death in her home’

Oleksandr Vilkul, head of the city’s defense council, said the missile attack, followed by a drone attack, had killed 19 people, including nine children.

“The Iskander-M missile strike with cluster munitions at the children’s playground in the residential area, to make the shrapnel fly further apart, killed 18 people.

“One grandmother was burnt to death in her house after Shahed’s direct hit.”

Russia’s defence ministry said it had struck a military gathering in a restaurant – an assertion rebutted by the Ukrainian military as misinformation.

“The missile hit right on the street – around ordinary houses, a playground, shops, a restaurant,” President Zelenskyy wrote.

Mr Zelenskyy also detailed the child victims of the attack including “Konstantin, who will be 16 forever” and “Arina, who will also be 7 forever”.

The UK’s chief of the defence staff Sir Tony Radakin said he had met the Ukrainian leader on Friday, along with French armed forces leader General Thierry Burkhard.

“Britain and France are coming together & Europe is stepping up in a way that is real & substantial, with 200 planners from 30 nations working to strengthen Ukraine’s long term security,” Sir Tony wrote.

The UK and France have spearheaded a so-called “coalition of the willing” – a group of countries that have pledged to help Ukraine secure if a ceasefire deal is reached with Russia.

Continue Reading

World

Global markets have given Trump a clear no-confidence vote – and his fickleness is making the problem worse

Published

on

By

Global markets have given Trump a clear no-confidence vote - and his fickleness is making the problem worse

Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.

The damage it will do is obvious: costs for companies will rise, hitting their earnings.

The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.

Tariffs latest: FTSE 100 suffers biggest daily drop since COVID

Financial investors had been gradually re-calibrating their expectations of Donald Trump over the past few months.

Hopes that his actions may not match his rhetoric were dashed on Wednesday as he imposed sweeping tariffs on the US’ trading partners, ratcheting up protectionism to a level not seen in more than a century.

FILE PHOTO: U.S. President Donald Trump holds a "Foreign Trade Barriers" document as he delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo
Image:
On Wednesday, Donald Trump announced global tariffs, ratcheting up protectionism. Pic: Reuters

04 April 2025, Hesse, Frankfurt/Main: Stock exchange traders watch their monitors on the trading floor of the Frankfurt Stock Exchange while the display board with the Dax curve shows falling prices. US President Trump had issued a huge tariff package against trading partners around the world. The European Union and China have already announced countermeasures. Photo by: Arne Dedert/picture-alliance/dpa/AP Images
Image:
Traders at the Frankfurt stock exchange watched the DAX plummet on Friday. Pic: Picture-alliance/dpa/AP

Markets were always going to respond to that but they are also battling with another problem: the lack of certainty when it comes to Trump.

More on Donald Trump

He is a capricious figure and we can only guess his next move. Will he row back? How far is he willing to negotiate and offer concessions?

Read more:
No winners from Trump’s tariff gameshow
Trade war sparks ‘$2.2trn’ global sell-off

These are massive unknowns, which are piled on to uncertainty about how countries will respond.

China has already retaliated and Europe has indicated it will go further.

Aerial view of a ro-ro terminal for vehicle shipment in Yantai in eastern China's Shandong province, Thursday, April 3, 2025. (Chinatopix Via AP) CHINA OUT
Image:
Vehicles destined for export, like these in Yantai in eastern China, face massive US tariffs. Pic: Chinatopix/AP

Cargo containers line a shipping terminal at the Port of Oakland on Thursday, April 3, 2025, in Oakland, Calif. (AP Photo/Noah Berger)
Image:
Container ports like Oakland in California might expect activity to fall. Pic: AP

That will compound the problems for the global economy and undoubtedly send shivers through the markets.

Much is yet to be determined, but if there’s one thing markets hate, it’s uncertainty.

Continue Reading

Trending