Tuesday, 18 February 2025
The Mighty Headlines
Economics: UK Government considers freezing income tax thresholds
Business: A third of UK businesses looking to reduce employee numbers
Markets: European defence shares rise by up to 20 per cent
Foreign Affairs: Hamas prepared to give up governing Gaza
Security and intelligence: UK calls for US backstop to Ukrainian peace deal
Domestic politics: UK Treasury looking at spending cuts of 5 or 11 per cent
The Mighty Stats
FTSE = 8,768.01 (up 0.41 per cent)
S&P 500 = US markets closed yesterday for a public holiday
Nasdaq = US markets closed yesterday for a public holiday
CAC40 = 8,189.13 (up 0.13 per cent)
£1 = $1.26 / €1.20
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The Mighty Detail
Economics: The UK Treasury is said to be considering freezing income tax thresholds at the Budget next month. A freeze in the thresholds could raise up to £4 billion a year. The £9.9 billion of flexibility that the Government previously had in its finances has been reduced because of poor economic growth.
Business: New research suggests that around a third of UK businesses are looking to reduce their number of employees. A total of 42 per cent also said they would increase prices. Their decisions are reported as being linked to the increase in the minimum wage and in national insurance announced at the Budget last October.
Markets: Shares in European defence companies rose by as much as 20 per cent during trading yesterday. This comes as traders anticipate an increase in European defence spending as the US retreats from European defence commitments. Shares in BAE Systems rose by nearly 8 percent. Shares in German arms maker Rheinmetall rose by over 14 per cent and shares in Thyssenkrupp rose by nearly 20 per cent.
Foreign Affairs: It is being reported that Hamas is prepared to hand over the governing of Gaza to the Palestinian Authority as the US leads talks to extend the ceasefire. Israeli Prime Minister Netanyahu said, however, that there would be “neither Hamas nor the Palestinian Authority” in Gaza when the war ends and that he was committed to President Trump’s plan of relocating Gaza residents.
Security and intelligence: Following a meeting of European leaders in Paris, UK Prime Minister Sir Keir Starmer has said a Ukrainian peace agreement would require a “US backstop” to prevent future Russian attacks. Separately, the US’s Ukraine Envoy, Keith Kellogg, said yesterday that no-one would impose a peace deal on Ukraine.
Domestic politics: The UK Treasury is asking Government departments to model reductions in public spending as part of a Spending Review due in June. The two models would see departments outside of Health, Education and Defence face spending cuts of around 5 per cent or 11 per cent over three years. The extra money could be invested in defence.
The Mighty Calendar
What’s happening today?
China’s Foreign Minister Wang Yi chairs UN Security Council meeting
UK average earnings data (December)
UK employment data (December)
Canada CPI inflation data (January)
Japan trade data (January)
Lookahead to tomorrow
President Trump expected to attend Saudi Arabia investment summit in Florida
UK CPI inflation data (January)
US new home construction data (January)
Company results from: HSBC, Glencore, BAE, Rio Tinto, Carrefour
The Mighty Finale
🌤️Weather today
A sunny day everywhere in England! High of 7C and low of 1C in London. Light rain in Belfast. Sleet in Edinburgh.
✏️Life coaching quote of the day
“The purpose of life is to live it, to taste experience to the utmost, to reach out eagerly and without fear for newer and richer experience.” – Eleanor Roosevelt, diplomat and activist
Mighty takeaway: Don’t pass on new opportunities. They may not come again.
That’s it for this morning. Thanks for reading and we’ll see you tomorrow.
Adios!
The Mighty Memo team