FirstFT: Truss says UK recession can be prevented

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Good morning. Liz Truss, leader of the Tory Party, said yesterday that it can prevent a recession if she became prime minister as the Bank of England warned that Britain would face a protracted recession.

The British Foreign Secretary, who has promised immediate tax cuts if she wins, said during a debate with Sky News management that the Bank of England’s projected economic downturn, which could last until next year, could still be prevented.

“We can change the outcome and make the economy more likely to grow,” Liz Truss

Truss vowed to cancel plans by her rival Rishi Sunak, the former chancellor, to increase corporate tax from 19 percent to 25 percent, while eliminating environmental levies on energy bills and raising national insurance.

Sunak trails Trass in all polls of party members, with some pointing to a lead of 30 points or more. But after the debate at Sky News, the audience raised their hands and gave Sunak a big thumbs up.

The televised debate took place on the same day that the central bank raised interest rates sharply by 0.5 percentage points to 1.75 percent, and projected inflation by the end of the year will reach 13 percent.

The gloomy look of the Bank of England The immediate economic outlook came as a shock to analysts, who believe he wants to force a sharp downturn to curb rising inflation.

  • opinion: To cement her authority in office, Truss must appoint a cabinet that represents the full range of Tory views. writes Sebastian Payne.

How well have you been following the news this week? take us quiz. Thank you for reading FirstFT Europe/Africa. Have a nice weekend – Jennifer

1. Ukraine calls for extension of Black Sea grain deal Taras Kachka, Ukraine’s trade representative and deputy economy minister, called for a deal that eases Russia’s blockade of grain exports. applies to other products such as metals after the first successful use of the route.

2. Coinbase Makes a Deal with BlackRock for Access to Cryptocurrency Coinbase has announced a deal with BlackRock that will give the asset manager’s clients more seamless access to digital asset markets, the latest sign of traditional investors. I deal with cryptocurrencies.

3. Visa and Mastercard cut off relations with the advertising division of the owner of Pornhub. Payment networks to stop working with the advertising arm of MindGeek, the owner of Pornhub, after a court decision found that Visa can be held liable for illegal content on a user-generated porn site.

4. Russian court sentenced Britney Griner to nine years in prison The prosecutor’s office sentenced the American basketball player to nine years in prison on charges of drug smuggling, raising the stakes of an alleged prisoner exchange that could involve Russian arms dealer Viktor Bout.

Britney Griner

Russian prosecutors demanded a sentence of nine years and six months for Britney Griner after she pleaded guilty to drug smuggling © Evgenia Novozhenina/Pool/Reuters

5. Wildfires consume nearly all of the 100-year forest carbon stock. According to non-profit research at least 95 percent of all carbon credits set aside for reserve by forestry projects in the United States.

The next day

Erdogan meets with Putin Turkish President Recep Tayyip Erdogan will meet with his Russian counterpart Vladimir Putin in the Black Sea resort of Sochi to discuss military cooperation. (Yahoo)

Economic Data In the UK, the monthly house price index in Halifax is due. Analysts expect job growth in the US in July continued at a high pace, but slower than in June. The Federal Reserve releases consumer credit data. (FT, WSJ)

celebrations In addition to International Beer Day, the streets of Brighton will be strewn with glitter as one of the UK’s biggest pride events begins today. The annual LGBT+ parade will draw thousands of people to the south coast.

What else do we read

Europe and Asia struggle to secure gas supplies Race for block LNG supplies for the winter raises the risk of further price spikes, adding fuel to the cost-of-living crisis. Competition has intensified as Europe seeks to replace natural gas from Russia, increasing pressure on countries such as Japan and South Korea, which are the world’s second and third largest LNG importers.

A line chart of US dollars per million British thermal units showing that gas prices in Europe remain elevated relative to Asia.

Britain’s Anxious Generation Across the country, this year’s students are perhaps the most fragile, underprepared and unfortunate group ever to achieve A-level results. Lucy Kellaway explains why and what schools do for cope with a looming mental health crisis.

In 50 years, will anyone live in central Spain? You might think that climate change would be a top priority in the hot, dry country, but in fact, Spaniards are spending more time arguing about national unity after the trauma of Catalonia’s illegal 2017 independence referendum. Simon Cooper writes that global warming is threat to the most livable country in the world.

Ukrainian refugees hope for the kindness of strangers Since Russia launched a full-scale invasion of Ukraine, more than 6 million people have fled. Hundreds have shared their stories with the Financial Times about the anxiety of fleeing the war zone, the difficulty of adapting to unfamiliar lands, and their hopes for the future. Difficulties, heartache and uncertainty were constant, but there were also good deeds.

Market rally teaches hard lessons Oh, poor fund managers. Why long faces? July was one of the best months of all time. But this may not be the rebound we’ve all been waiting for. Too much money was hidden in a safe hiding place and too little was put on the rise, written by Cathy Martin.

Books

Famous Pakistani-born writer Mohsin Hameed lives in an imaginary homeland that he tries to portray in his books. Have talking to FT about placelessness, “the art of politically engaged art” and his new book The last white man.

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