Rachel Reeves will not be investigated over pre-budget briefing, FCA says

The potential initial public offering (IPO) of Fannie Mae and Freddie Mac has sparked discussions among key investors, including John Paulson and Bill Ackman, regarding how the structure of the offering will impact their financial outcomes. The Treasury's involvement is also crucial in determining the success of this IPO, which could reshape the landscape of government-sponsored enterprises.

Kevin Hassett, a prominent economic advisor to former President Trump, has emerged as a leading candidate for the Federal Reserve chair, emphasizing the role of tariffs in boosting Treasury revenues. Meanwhile, Treasury Secretary Scott Bessent has expressed concerns about the national debt, likening it to a 'shrinking ice cube.'

The Society of Independent Brewers and Associates has urged Chancellor Rachel Reeves to reconsider recent changes to business rates, warning that these adjustments could jeopardize the survival of community pubs across the UK. In an open letter, the trade group expressed deep concern over the potential negative impact on the hospitality sector following the government's decisions.

The UK economy has faced significant challenges, including austerity measures, Brexit, the pandemic, and rising energy costs, leading to widespread dissatisfaction among citizens regarding income, home ownership, and public services. Recent polling indicates a decline in trust towards Labour's economic leadership, particularly under Chancellor Rachel Reeves, who has been criticized for her handling of the economy.

UK investors withdrew £3 billion from equity funds in November, driven by uncertainty ahead of Chancellor Rachel Reeves's budget announcement. This trend of daily outflows reversed after the budget revealed measures that were less severe than anticipated, prompting renewed interest in stocks.

An investigation into pre-Budget leaks has been initiated, as Chancellor Rachel Reeves expressed her full support for a review of security processes leading up to the Budget announcement. This comes after significant market reactions to early disclosures of key budget measures.

Scott Bessent is being considered to lead the National Economic Council while continuing his role as Treasury Secretary, as reported by Bloomberg. This potential dual role highlights the administration's strategy to streamline economic policy leadership amid ongoing economic challenges.

Treasury yields have declined as recent data indicates a rapid weakening in U.S. employment, supporting expectations for a third consecutive interest rate cut by the Federal Reserve next week. This trend is underscored by a reported drop in private payrolls, which fell by 32,000 jobs in November, raising concerns about the labor market's health.