DOOM: UK 2-year bond yields at Truss panic levels

[AtW]

Corp tax is paid on profits and business investment reduces profit so level of CTax not an issue there. Also a good businessman aims for a zero profit scenario which proves they've maximised use of income. In any case you should be salting £60K for each Director into executive pensions to minimise profit

Yes, it “just” reduces profits level - so lower dividends unless costs are cut, and investment can be easiest to cut, shares market on top - if dividends get cut many big firms will take a drop and the ugly pension issues will resurface etc - stupid Tory Chunts fooked the economy for good, on top of Brexit as well, chunts the lot of them.

[Snooky]

Yes but as all companies are their own entity they should all maximise use of revenue to build and improve. Shareholders may like dividends but they also like rising stock prices and get value both ways. As a shareholder I prefer my investments to be in successful companies investing in their future rather than companies being gutted to increase shareholder (more usually board member) wealth

You're a teeny tiny minority stakeholder compared to the global corporates who make up the majority of equity investments and who want a combination of share price growth and income stream. Pension funds, insurance companies etc need cashflow as well as assets but don't want it all to come from selling investments.

[tazdevil]

I guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.

Yes but as all companies are their own entity they should all maximise use of revenue to build and improve. Shareholders may like dividends but they also like rising stock prices and get value both ways. As a shareholder I prefer my investments to be in successful companies investing in their future rather than companies being gutted to increase shareholder (more usually board member) wealth

[JustKeepSwimming]

I guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.

Sure they would if their share increased in value.

[Snooky]

a good businessman aims for a zero profit scenario which proves they've maximised use of income

I guess you're referring specifically to contractor companies because I don't think shareholders of many larger companies would appreciate a "zero profit" strategy.

[tazdevil]

Corp tax is paid on profits and business investment reduces profit so level of CTax not an issue there. Also a good businessman aims for a zero profit scenario which proves they've maximised use of income. In any case you should be salting £60K for each Director into executive pensions to minimise profit

[AtW]

Corp tax is up from 19% to 25% = less money for investment, higher interest rates = businesses must increase profitability to pay more dividends (and dividend taxes up also), otherwise why risk capital when some banks already pay 3%+?

Thank you pro-business low-tax Tory Scum party

[SueEllen]

I'm waiting for Labour to win and then hand out loads of cash to people and see how it all falls apart. Tories must be relieved in a way as they won't have to clean up this spiral mess.

Labour will do what Bliar did when he won - not change anything for their first term to stop the markets crashing. I mean they saw what Truss could do within 50 days.

[dsc]

Interest rates to the moon!

I'm waiting for Labour to win and then hand out loads of cash to people and see how it all falls apart. Tories must be relieved in a way as they won't have to clean up this spiral mess.

[dsc]

If only that were true about the IT jobs market and rates. High interest rates are destroying demand for new IT projects. Companies paying more debt interest have less money to waste on expensive IT projects.

Also the FTSE 250 is still in a bear market, down over 20% from all time highs. Im looking for a breakout above 21,000 as a signal the worst might be behind us. Probably not going to happen anytime soon if they keep on raising rates.

Not just IT, any investment will suffer, which is why I'm surprised the job market is doing well. Pensioners picking up perm jobs to survive? or is it just summer jobs pushing the numbers up?

[Fraidycat]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

If only that were true about the IT jobs market and rates. High interest rates are destroying demand for new IT projects. Companies paying more debt interest have less money to waste on expensive IT projects.

Also the FTSE 250 is still in a bear market, down over 20% from all time highs. Im looking for a breakout above 21,000 as a signal the worst might be behind us. Probably not going to happen anytime soon if they keep on raising rates.

[jamesbrown]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

Interest rates to the moon!

[dsc]

Just read that the job market in the UK is doing great, salaries going up, employment going up, I'm guessing interest rates will just carry on then as we'll most likely see further price increases across the board?

[TestMangler]

“Expectations that UK interest rates will keep rising are driving up the British government’s short-term borrowing costs ABOVE levels seen in Liz Truss’s brief premiership.

That’s bad news for people who looking to take out a mortgage, or remortage, soon.

The yield, or interest rate, on UK two-year government bonds has hit 4.73% this morning, up from 4.62% last night, after this morning’s jobs report showed regular pay growing at the fastest rate on record.

That is slightly higher than the peak seen in the turmoil after last autumn’s mini-budget, when chancellor Kwasi Kwarteng’s plan for unfunded tax cuts spooked the markets.
”

https://www.theguardian.com/business...0862658b7a4758

Wo under Sunak we get same tulip minus lower taxes that Truss pushed for

yeah, but labour......

[AtW]

“Expectations that UK interest rates will keep rising are driving up the British government’s short-term borrowing costs ABOVE levels seen in Liz Truss’s brief premiership.

That’s bad news for people who looking to take out a mortgage, or remortage, soon.

The yield, or interest rate, on UK two-year government bonds has hit 4.73% this morning, up from 4.62% last night, after this morning’s jobs report showed regular pay growing at the fastest rate on record.

That is slightly higher than the peak seen in the turmoil after last autumn’s mini-budget, when chancellor Kwasi Kwarteng’s plan for unfunded tax cuts spooked the markets.
”

https://www.theguardian.com/business...0862658b7a4758

Wo under Sunak we get same tulip minus lower taxes that Truss pushed for