UK chancellor Rachel Reeves has made some significant reforms in her latest budget. Notably, she has committed to easing living cost pressures with widespread energy bill support, higher taxes for the most expensive homes, and axing the two-child cap on certain benefits.
Letter from the Chancellor to the Governor
We’ve got mail
Government ministers say they are confident overdue payments will hit farmers’ bank accounts in time to call off disruptive protests planned for the coming week, while they hope to have the payments system tidied up by the end of the year.
The European Bank for Reconstruction and Development (EBRD) Transition Report 2025-26, "Brave Old World," identifies Greece as a rapidly ageing economy facing mounting demographic challenges, necessitating bold policy responses centered on extending working lives, boosting productivity through technology, and facilitating targeted labor mobility.
The budget primary balance was confirmed at a surplus of 10.25 billion euros up to October, compared to a surplus of 13.53 billion euros in the same period a year earlier, according to the final Finance Ministry (MoF) budget execution data released on Tuesday.
Trade turmoil in April 2025 saw a marked change in cross-asset behaviour compared with typical patterns. Notably, the US dollar depreciated strongly while US Treasury yields rose – the opposite of what usually happens in a risk-off environment. This prompted discussions as to whether the safe-haven properties of US dollar-denominated assets might be changing. This is particularly important for euro area financial stability since euro area investors hold US dollar-denominated securities in an amount equivalent to €6 trillion, which represents a significant share of their portfolios.
Plus, lenders take control of a French nursing home group and companies dump crypto holdings
Blackstone and KKR among the groups preparing to take control of Colisée and inject more than €250mn
Keep calm and carry on
