Now this is interesting…. Scotland’s devolved government is planning to issue its first ever bond.
SNP leader Humza Yousaf has revealed that Scotland will raise money on international bond markets for the first time, to fund infrastructure spending.
Yousaf, who became leader of the pro-independence party in March, says the move would help demonstrate the country’s credibility.
Humza Yousaf tells #SNP23 that the Scottish government will go to the international bond market for the first time “in our own right”, and issue Scotland’s first ever bond.
— Ian Fraser (@Ian_Fraser) October 17, 2023
Cue some predictable puns:
"Scotland's first ever bond", eh? pic.twitter.com/paUM99VM2y
— Robert Hutton (@RobDotHutton) October 17, 2023
It’s an fascinating issue, though. In 2015, before the most recent independence referendum, the question of who would own Britain’s national debt, if Scotland left the UK, came up.
The UK Treasury concluded that the continuing UK Government would in all circumstances honour the contractual terms of the debt issued by the UK Government.
An independent Scottish state would become responsible for a fair and proportionate share of the UK’s current liabilities – so would need to issue new debt to meet that obligation.
Closing post
Time to recap
UK workers are finally enjoying inflation-beating pay rises, according to the latest official data.
Real regular pay rose by 0.7% per year in June-August, while total pay (including bonuses) was 0.8% higher.
In nominal terms, regular pay growth in the quarter slowed slightly to 7.8% from 7.9% a month earlier, while total pay growth weakened to 8.1% from 8.5%.
The report also showed a fall in payrolled employment, and a drop in vacancies – which economists say may encourage the Bank of England to leave interest rates on hold again in November.
Victoria Scholar, head of investment at interactive investor, explains:
Although today’s figures don’t paint a full picture of the state of the UK labour market, the fall in job vacancies and slight drop in wage growth suggests that signs of slack continue to emerge, highlighting the fragility of the economy as elevated inflation and the Bank of England’s stream of rate hikes take their toll.
With vacancies continuing to decline, businesses are clearly becoming much more cautious about their hiring plans, less willing to take on the fixed costs of full-time staff as a time of economic uncertainty. At the same time, wage growth remains strong by historic standards, something the central bank will be paying close attention to in terms of its fight against inflation.”
It’s also been a day of bad news for job losses, in the UK and beyond.
Rolls-Royce plans to cut up to 2,500 jobs as part of a move to a simpler organisation “that is fit for the future”, according to its new chief executive.
KPMG is cutting around 110 jobs at its UK business amid a slowdown in dealmaking in the City.
UK workers could also be hit by the failure of Swedish electric lorry startup Volta Truck, which filed for bankrupcy protection this morning.
In another blow to UK factories, the Swedish bearings maker SKF has confirmed that it will close its site in Luton, which employs about 300 people.
While in Australia, 1,000 jobs are being cut by Glencore as it shuts its copper-mining plant on Mount Isa.
MPs have heard that the push to roll back hybrid working and force workers back to their office desks is forcing some women to quit jobs in the City.
In the banking sector, Goldman Sachs has reported a 33% drop in earnings in the last quarter.
Shares in chipmaker Nvidia have tumbled almost 5% after the White House announced new restrictions on exporting AI chips to China.
A jump in US retail sales has indicated America’s consumer spending is stronger than expected.
