IMF warns of global debt emergency as Reeves grapples with slowing jobs market
A harsh warning came from the IMF this week; Worldwide government debt was predicted to reach the highest level since World War II by the end of the decade. According to analysis in the IMF’s Fiscal Monitor report, total government debt increased faster than expected before the crisis. covid pandemicWhen policymakers step in to protect people and save businesses.
The UK was among the G20 countries, along with the US, China, France, Japan and Canada, whose GDP is expected to exceed 100 percent in the coming years.
The report comes ahead of the government’s autumn budget, in which Chancellor Rachel Reeves is expected to increase the tax burden on families and businesses. Goldman Sachs (GS) analysts said this week that Reeves’ package of tax rises and spending cuts was likely to be around £30bn as the government aims to plug a widening gap in the public finances.
The employment data released on Tuesday will not make life any easier for the Chancellor, who is looking for ways to revive the economy. Official figures showed wage growth slowed and unemployment rose further in the three months to August.
Perhaps Reeves can take inspiration from the work of Joel Mokyr, Philippe Aghion and Peter Howitt, who were awarded the 2025 Nobel Prize in economics this week for “explaining innovation-driven economic growth.”
The awarding body said American, French and Canadian economists “taught us that sustainable growth cannot be taken for granted.” “For most of human history, economic stagnation, not growth, has been the norm. Their work shows that we need to be aware of and counter threats to continued growth.”
Let’s take a look at this and other financial headlines from the last few days.
The Bank of England plans to allow stablecoin issuers to hold accounts directly with the central bank. ·Tanit Boonruen via Getty Images
IMF issues stern warning on global government debt
The International Monetary Fund has warned that government debt worldwide will reach 100% of global economic output by 2029, the highest level since World War II. Vitor Gaspar, head of the fund’s financial affairs department, said public debt levels could rise to as much as 123% of GDP by the end of the decade under an “unfavorable but plausible scenario”.
The IMF has called on governments to support the world economy and make debt more sustainable by shifting spending to growth-friendly areas such as infrastructure and education.
How the ‘Willy Wonka of Marketing’ uses comedy on LinkedIn
In this week’s Behind the Brand episode, we meet the marketing manager who makes LinkedIn laugh. There can’t be too many people with the marketing manager role like Henry Hayes, but a startup in London passion fruit It is doing different things to cut through the noise in an industry dominated by agencies.
“I realized I actually wanted to be the #1 comedy marketer in the world. There’s really a need for that, right?” jokes Hayes, who made a name for himself with viral skits about London stereotypes. “Even though we’re a small company, we’re a bit of a whirlwind beast. If CMOs are only on LinkedIn three times a month, we need to make sure we’re at the top of their news feed.”
Bank of England plans to support stablecoins
The central bank plans to support the UK’s digital asset framework by allowing systemic stablecoin issuers to hold accounts directly with the central bank.
In the comments DC Fintech Week On Wednesday, deputy governor for financial stability Sarah Breeden said the BoE would “play the role of banker” towards large, systemic stablecoin issuers; This was a move aimed at strengthening financial stability and trust in digital money.
“This avoids the problems we are already seeing abroad, where stablecoin issuers have difficulty accessing banking services,” he said.
Worried about an AI bubble forming in the stock markets? How did you vote?
Warnings that an AI bubble is on the horizon are increasing day by day. Many companies that make AI products or provide the infrastructure to support them have achieved sky-high valuations, which industry observers compared to the bursting of the dot-com bubble 25 years ago, which devastated global stock markets.
Not everyone agrees with this pessimistic outlook, but our survey shows that it’s worrying for many of you, our readers.
Home renovations can seriously increase the value of your property. ·Jackyenjoyphotography via Getty Images
Have you ever thought about renovating your home and what could it do to its value? An analysis published this week by Nationwide showed that, all else being equal, a 10% increase in floor space could add 5% to the price of a typical home. The building society found that an extra bathroom could add 4% to the price of a typical home, equating to an increase of £11,300. Find out if it’s worth upgrading your property: Loft conversions can increase the value of a house by £65,700
Government data experts examined the times when most credit card transactions occur and found that afternoons are by far the busiest time for spending. So why should this be the case, and perhaps more importantly, how can you keep your post-lunch spending under control?: 5 reasons why we spend more in the afternoon
Find more personal finance gems Here.
Economic data: Wednesday is a big day for economic updates in the UK with the release of key inflation data. Analysts predict that the annual price increase rate will increase from 3.8% in August to 4% in September.
Attention will turn to the USA on Thursday, where unemployment applications come to the fore. Investors will be watching closely for any weakening in the labor market that could prompt the deadlocked Fed rate-setting committee to lower borrowing costs.
US inflation numbers will be released on a busy Friday, and economists are predicting a slight increase in annual interest rates for September. Also pay attention to S&P’s all-important flash manufacturing and services PMIs.
Company earnings: Elon Musk’s Tesla (TSLA) began its “Fabulous 7” earnings run following record deliveries in the third quarter. Streaming giant Netflix (NFLX) is also due to report earnings, and the company is expected to report another set of strong results.
Additionally, chipmaker Intel (INTC) is scheduled to report third-quarter earnings as the company advances its turnaround strategy.
It’s a busy week for big banks in London; Barclays (BARC.L), Lloyds (LLOY.L) and NatWest (NWG.L) are preparing to report results.
Consumer goods company Unilever (ULVR.L) is another major FTSE-listed company expected to update its performance after a steady first half.
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