Pound, FTSE 100 tumble as IMF, Moody’s warn of Kwarteng tax cuts – live updates

Zgood morning.

The pound slipped back into the red after two major interventions last night reignited investor concerns over tax cuts in the UK budget.

In an extraordinary development, the IMF called on Prime Minister Liz Truss to reverse her economic policy – pointing in particular to the decision to scrap the higher rate of income tax.

Ratings agency Moody’s also warned that the policies risk “permanently weakening the UK’s debt affordability”, the strongest suggestion yet that the country faces a downgrade.

The pound, which fell to an all-time low against the dollar earlier this week, fell back below $1.07.

5 things to start your day with

1) IMF urges Truss to reverse top tax cut in rare interventions A highly unusual move by the world’s lender of last resort condemned by senior Tories as increasing pressure on the prime minister and chancellor

2) Building societies under pressure as borrowing costs skyrocket Smaller lenders are more exposed to fluctuations in wholesale interest rates than larger main banks, which lend outside their deposit bases.

3) The bank signaled a “significant” response to the shocks BoE chief economist Huw Pill was speaking as long-term borrowing costs hit their highest level since 2002.

4) Fears of job cuts as MailOnline and Daily Mail merge operations It comes as the publisher tries to create a digital future for titles that often overlap and compete.

5) Christmas shopping mayhem is brewing as Royal Mail staff plan 19 days of outings Union leaders have launched a major escalation in their industrial dispute with Royal Mail, warning of major disruption to deliveries

What happened in one night

Sterling fell again this morning, losing nearly 1 percent against the dollar to $1.0634.

Asia resumed its downward trend, with Tokyo, Hong Kong and Seoul down more than 2%, while Shanghai, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta were also down.

It’s due today

  • Economy: BRC Shop Price Index (UK), Crude Oil Stocks (US), Upcoming Home Sales (US), Gross Domestic Product (US)
  • Corporate: Boohoo, Everyman Media (Intermediate)

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