The chancellor is set to defend the measures proposed in her recent Budget announcement, the G7 is converging once again and the new-look European Commission is set to be confirmed in this week’s trade news.
Budget back in focus
Chancellor Rachel Reeves’ recent Budget will be back on the agenda today (25 November), as she delivers a speech to the Confederation of British Industry (CBI) at its annual conference, arguing that she had “no choice” but to implement some of its measures.
The Guardian reported ahead of the speech that Rain Newton-Smith, director general of the CBI, is likely to say that “almost two-thirds of firms told us this Budget will damage UK investment”.
“Tax rises like this must never again be simply done to business. That’s the road to unintended consequences.”
Reeves is also set to say that “I do not plan to have another Budget like this”, adding that she has “wiped the slate clean” and will not aim for further tax rises.
New-look EU Commission
The European Parliament will vote on its new college of commissioners on Wednesday (27 November), following a series of three-hour interviews of the candidates by specialist EU committees over the past week.
Politico reports that Maroš Šefčovič, the current trade commissioner who is seeking to continue in the role, was careful to state that he would be strong on the EU’s relationship with China, despite the good Chinese relationship of the man who nominated him to the post, Slovakian prime minister Robert Fico. Fico met with Xi Jinping, the Chinese leader, last week.
Šefčovič remained evasive on the detail of how he would face down trade challenges from China, Politico notes, as well as whether the bloc could implement a new trade defence instrument to counter cheap Chinese imports.
Bank of England report
The Bank of England’s biannual Financial Stability Report will be published on Friday, presenting the views of the bank’s Financial Policy Committee on “the stability of the UK financial system and what it is doing to remove or reduce any risks to it”.
The previous report, published in June, emphasised persistent geopolitical risks. It said:
“The global economy is facing several challenges, including the continued adjustment to higher interest rates, and higher debt payments for businesses and households.
“Geopolitical risks remain high and there is policy uncertainty associated with elections set to take place globally. This could make the global economic outlook less certain and lead to financial market volatility.”
The report noted that commodity prices and supply chains remained vulnerable to geopolitical shocks and the next report is likely to provide further insight on the relationship between geopolitics, trade and UK finance.
It added that some firms may struggle with higher borrowing costs as a result of higher interest rates, when compared with previous years.
G7 meeting
The Group of Seven (G7) nations meet again today in Italy, marking the final visit of current US Secretary of State Anthony Blinken before he is replaced under the incoming Donald Trump administration, Reuters reports.
Representatives from the seven nations pledged to maintain the current programme of export controls and sanctions on Russia as part of discussions over the invasion of Ukraine.
Other dates for the diary
Monday: Bank of England deputy monetary policy governor Clare Lombardelli delivers speech
Tuesday: US Federal Open Markets Committee meeting minutes published
Wednesday: US Q3 GDP figures
Thursday: German inflation data
Friday: Euro area inflation stats
Saturday: China manufacturing PMIs
Sunday: Ursula von der Leyen’s second term as European Commission president begins
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