Thursday morning news briefing: Insider tells of mini-Budget red flags

Morning briefing
Morning briefing

There are growing fears that the fallout from the mini-Budget could deepen a recession rather than boost growth as was its intention.

After the Bank of England was forced to launch a £65 billion emergency bailout as Britain's pension funds were at the centre of the financial crisis, pressure is mounting on Chancellor Kwasi Kwarteng to take more action to reassure markets.

Now The Telegraph can disclose that one of Prime Minister Liz Truss's most prominent economic supporters and informal advisers warned government figures of the danger of spooking the markets.

Gerard Lyons, the chief economic strategist at Netwealth Investments, said he had repeatedly raised the red flag to government figures about the impact the mini-Budget, much of which he backs, could have on markets.

Ms Truss and Mr Kwarteng are planning to speak publicly for the first time in days today when they give brief TV interviews.

In a further attempt at reassurance, the Treasury let it be known it will be sending letters to all government department heads to tell them they must find efficiencies.

Political editor Ben Riley-Smith reports on growing Tory despair over the turmoil, which is likely to overshadow the Conservative Party's annual conference on Sunday.

The president of the World Bank this morning warned of recession in Europe as the pound and euro again fell against the dollar overnight.

David Malpass said in a speech it could take years for global energy production to recover from the supply crisis triggered by Russia's invasion of Ukraine.

Following yesterday's rally, the pound was down again to below $1.08 in early trading. Follow the latest.

And Richard Evans explains what the Bank's intervention means for your pension.

Hurricane Ian batters Florida as 2m without power

Florida has been hit by one of the most powerful storms in US history, with hurricane Ian unleashing 150mph winds, torrential rain and knocking out the power for more than two million people – as some residents were told "the worst is yet to come".

The Category 4 hurricane barrelled onshore last night and shot towards the city of Fort Myers, where cars were submerged, power lines downed and roads turned into rivers.

In nearby Naples, dramatic videos showed entire homes being swept away in flooding, as storm surges of up to 18 feet forced water onshore.

Now, the 140-mile wide system is crawling inland towards Orlando at just 9mph, which is seeing towns and cities suffer sustained punishment.

Track the path of the storm with US correspondent Jamie Johnson, who has the latest videos and pictures from Florida.

Don't put a tiara on my sculpture, Queen told artist

Queen Elizabeth II asked a royal sculptor to depict her without her tiara so the bust would be "the same" as the Duke of Edinburgh's alongside it, the artist has revealed ahead of a new exhibition.

Meanwhile, a statue of the late monarch will not be placed on Trafalgar Square's fourth plinth in the foreseeable future, Sadiq Khan's office has said.

There have been calls for a monument to be placed on the vacant plinth, which has been used to showcase contemporary art since 1999.

But the London mayor's office said it would continue to be reserved for modern art commissions.

Today's political cartoon

Vladimir Putin's isolated position is the subject of Blower's cartoon today. Matt is away, but view his latest work.

Also in the news: This morning's other headlines

Royal security | The Duke and Duchess of Sussex were protected during their visit to Britain by a bodyguard who has been convicted of domestic violence. The couple, who made private security arrangements for their trip to the UK, were photographed being driven by Pere Daobry. The ex-Metropolitan Police firearms officer has previously been convicted of assault for attacking his then-wife. As Patrick Sawer reports, the Duchess in particular has been a vocal advocate for women's rights.

Around the world: Ukrainian forces close in

Russian forces in the Donetsk region town of Lyman are on the brink of encirclement following Ukrainian gains to their north and east, pro-Russian military bloggers have said. The claims could not be immediately verified, but the reported Ukrainian gains appeared to match images and videos released on social media by Ukrainian soldiers. Senior foreign correspondent Roland Oliphant explains how the fall of the town would be another military setback for Russia.

An alleged Russian spy captured near the Donets river - NICOLE TUNG/NEW YORK TIMES
An alleged Russian spy captured near the Donets river - NICOLE TUNG/NEW YORK TIMES

Comment and analysis

Sport briefing: Chelsea in race to sign Bellingham

Chelsea are desperately trying to play catch-up in the race to sign England midfielder Jude Bellingham next summer. Matt Law understands the Todd Boehly-Clearlake Capital ownership have already attempted to make inroads into the Bellingham camp, despite being told that Real Madrid and Liverpool are ahead of them. Meanwhile, football's hidden sleeping pills crisis is revealed in an interview with Ryan Cresswell, who says the drugs would have killed him and are still rife.

Editor's choice

  1. Broken blue line | How British policing lost its way and trust crumbled

  2. First orders | Why 6pm is now the trendiest time to book a restaurant

  3. Keep Talking by David Dimbleby | Off the leash, after a lifetime at the BBC

Business briefing: Trade and travel at risk next year

Britain will suffer "rapid and significant detrimental impact on trade and travel" with Europe if Brussels refuses to soften new border checks due to come in next year, the boss of the Port of Dover has warned. Biometric identity controls are to be introduced next May, replacing the "wet stamping" of passports, which was brought in after Britain left the EU. As Oliver Gill reports, experts have warned of 17-mile tailbacks.

Travel: Europe's most charming capital

Bern is a Swiss metropolis that is slower and arguably more picturesque than its bustling city break counterparts, with history and character to boot. William Cook describes how its perfectly preserved medieval old town is almost ridiculously picturesque – with barely a tourist in sight.

Tonight's dinner

Indian-spiced mussel, coconut and lentil soup | Chilli and turmeric add a lovely warmth to this dish by Diana Henry.

And finally... for this morning's downtime

Return to Windsor | After the magnificent pomp of her funeral, Queen Elizabeth II lies at rest with her husband and close family in the tiniest royal annexe at Windsor Castle. As the property reopens to the public today, Sophie Campbell explains 10 things not to miss on a visit – and how to impress your companions along the way.

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