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Britain’s PM delays fiscal statement to Nov 17

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PM

Uk new PM Rishi Sunak on Wednesday, 26 October postponed the announcement of a plan to repair the nation’s public finances until November 17, two-and-a-half weeks later than originally planned.

Finance Minister Jeremy Hunt announced the move in a televised statement, saying it was prudent to delay the plan to ensure it took into account the latest economic forecasts.

“The prime minister and I have decided that it is wise to make that statement on the 17th of November,” Hunt said.

The plan is expected to set out how the government will plug a budget shortfall of as much as 40 billion pounds ($45.88 billion).

Britain’s credibility in financial markets was shaken last month when former PM Liz Truss announced a string of unfunded tax cuts, triggering a bond market rout so severe the Bank of England had to intervene and Truss was forced into a U-turn and eventually resigned.

“Our number one priority is economic stability and restoring confidence that the United Kingdom is a country that pays its way and for that reason, the medium-term fiscal plan is extremely important,” Hunt said.

“I want to confirm that it will demonstrate debt falling over the medium term.”

British government bonds extended their losses on confirmation of the delay. Long-dated gilt yields hit new session highs as they rose 12-13 basis points on the day. Sterling was little changed by the announcement.

Prior on Wednesday, Sunak gathered his cabinet for the first time, a day after he took over from Truss with a promise to fix his predecessor’s mistakes and stabilize the economy.

The budget plan delay will complicate the Bank of England’s job next week when it is due to publish forecasts for the economy without knowing the details of the government’s fiscal plans, as well as take its latest monetary policy decision.

The BoE is expected to raise interest rates again – probably to 3.0pc from 2.25pc now on November 3.

 

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Economy

Tesla shareholders voting yes for Musk’s $56 bln pay package, CEO says on X

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Tesla shareholders are voting to approve a $56 billion pay package for Elon Musk and to move the electric vehicle maker’s legal home to Texas, Musk said on social media platform X on Wednesday, adding that passage was by wide margins.

Shareholders of the electric-car maker are voting on a proposal to ratify CEO Musk’s 2018 incentive package, valued at up to $56 billion at the time and the largest in US corporate history, after a Delaware judge voided the plan approved by its board “beholden” to Musk.

The result will be announced at a meeting on Thursday.

A person familiar with the preliminary tally confirmed Musk’s post, and said that a combination of big institutional investors and retail investor got the ‘yes’ result over the line.

Shareholders, however, are allowed to change their vote up to the start of the annual meeting.

Tesla shareholders also cast ballots on other proposals including the move of Tesla’s legal headquarters from Delaware to Texas, as well as the re-election of two board members: Musk’s brother Kimbal Musk and James Murdoch.

Musk referred to the resolutions on his pay package and the move in his tweet, thanking shareholders for their support.

Some investors viewed the vote on Musk’s pay as a test of confidence in his leadership. While he is undoubtedly Tesla’s driving force, and is credited with much of its success, the company has recently seen slowing sales and profits.

The board said the world’s richest person deserves the package, because he hit all the ambitious targets on market value, revenue and profitability.

The pay package is also needed to keep Musk devoted to Tesla, the board said, even though the Delaware judge said the 2018 pay plan failed to make sure that Musk committed a substantial amount of time to Tesla.

Musk has threatened to build AI and robotics products outside Tesla, if he fails to gain enough voting control, which requires the 2018 pay package to be approved.

Some large shareholders including Norway’s sovereign wealth fund and California’s two largest pension funds have said they will vote against the compensation, saying the pay is excessive.

Tesla has been drumming up support for Musk’s pay package, especially from retail investors, who make up an unusually high percentage of its ownership base but who often do not vote.

Company executives have posted messages on X, saying Musk is critical to Tesla’s success. Tesla has run social media ads, and Musk has promised a personal tour of Tesla’s factory in Texas to some shareholders who cast votes.

COURT BATTLE

The same package was previously rejected by a Delaware judge who invalidated it as an “unfathomable sum” granted by a conflicted board with close personal and financial ties to its top executive.

The board held the shareholder vote as a way to bolster its appeal of the ruling, in which the judge cited the board’s failure to fully inform shareholders before approving the pay package in 2018.

Musk has to wait months or years to get his pay package restored as appeals wind their way up to Delaware’s Supreme Court.

Tesla could also face more litigation from some shareholders. One of them this month filed a lawsuit challenging the upcoming shareholder vote on Musk’s pay package and the change of domicile.

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Fire in Mangaf Workers’ Accommodation Claims 41 Lives

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mangaf kuwait fire

A devastating fire broke out early Wednesday in a building housing workers in Mangaf, southern Kuwait, resulting in the deaths of at least 41 people, according to Deputy Prime Minister Sheikh Fahad Yusuf Saud Al-Sabah.

During his visit to the site, Sheikh Fahad, who also oversees the interior and defense ministries, criticized real estate owners for their violations and greed, attributing these factors to the tragic incident.

“Unfortunately, the greed of real estate owners is what leads to these matters,” Sheikh Fahad stated.

The blaze was reported to authorities at 6:00 a.m. local time (0300 GMT), according to Major General Eid Rashed Hamad.

“The building was used to house a large number of workers. Dozens were rescued, but sadly, many succumbed to smoke inhalation,” a senior police commander informed state television.

He further emphasized the longstanding warnings against overcrowding in worker accommodations, though he did not specify the workers’ occupations or nationalities.

The fire has been contained, and authorities are currently investigating its cause, officials said.

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Baltimore shipping lane fully reopens after bridge collapse

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The Baltimore shipping lane blocked for more than two months after a cargo ship collided with a major bridge in
March, sending it crashing into the water, fully reopened on Monday, authorities said.

The US Army Corps of Engineers, along with Navy salvage divers, restored the channel to its original dimensions by removing about 50,000 tons of debris from the Patapsco River, a statement from the Key Bridge Response Unified Command said.

The riverbed was certified as safe for transit on Monday.

“We are proud of the unified efforts that fully reopened the Federal Channel to port operations,” said Lieutenant General Scott Spellmon, commanding general of the Army Corps of Engineers.

“The partnerships that endured through this response made this pivotal mission successful.”

On March 26, the Singapore-flagged M/V Dali lost power and plowed into a support column of the Francis Scott Key Bridge, causing it to collapse and killing six road workers who had been filling potholes overnight.

The 106,000-ton ship had been headed for Sri Lanka at the time of the accident.

The US National Transportation Safety Board (NTSB), which is investigating the incident along with the FBI, has said the ship had two electricity blackouts in the moments before the disaster.

The Dali was refloated last month and towed back into port.

The port of Baltimore is one of America’s busiest ports and a key hub for the auto industry, handling almost 850,000 autos and light trucks last year — more than any other US port, according to state figures.

The full reopening of the shipping channel will allow for two-way traffic, Monday’s statement said.

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