let s start here in the uk where the new chancellor has been holding crunch talks with the prime minister on sunday to thrash out plans on tax and spending. jeremy hunt says his focus is on growth underpinned by stability. the value of the pound has gone up against the dollar in early trading today in asia. we will look at the market numbers in a moment because the new chancellor has the tough task of restoring economic credibility in the financial markets. our international trade correspondent dharshini david explains some of the tough challenges he faces. as international trading resumed for the first time after the chancellor wrapped up an economic strategy launched just one month ago, but his version, will it reassure other financial markets? let s look at those challenges, because this is the cost of new government borrowing, as dictated by the bond markets, which also impact mortgage rates. that rate remained high on friday then it was prior to september s mini budget.
lets now get down to business. the biggest interest rate rise since 1989. that s what we are awaiting from the bank of england in just a few hours time as it battles to control soaring prices. the bank is widely expected to raise its benchmark rate from 2.25% to 3% pushing up the cost of mortgages, credit cards and loans. it comes as america s central bank the us federal reserve raised its main rate by three quarters of a percentage point and warned borrowing costs will have to go higher than many are expecting. michelle fleury has this from new york. this is the fourth time in a row that the us central bank has raised interest rates so aggressively, with another hike possible in december. the rapid pace of increases is in response to prices that have been rising at their fastest pace in four decades. now, as the race to beat inflation continues, the question for everyone is, will mr powell and his colleagues really keep up this pace? in its statement, for the firs
time now to get down to business. let s start here in the uk where prime minister liz truss has been announcing her new cabinet. she has been busy into the late hours. she s decided to give kwasi kwarteng the second most powerful role in downing street after appointing him as new chancellor of the exchequer. mr kwarteng has a tough job on his hands and takes over at a critical time for the uk economy with millions looking to him for help with soaring winter energy bills. so, what about the man himself? he attended the exclusive private school eton college and went on to graduate with a double first from cambridge university in classics and history. kwarteng then went on to work as a columnist for the daily telegraph and a financial analyst at banks, includingjp morgan. more recently, he was appointed as business secretary in 2021, replacing alok sharma in the borisjohnson government. that is a short synopsis. joining me now is fiona cincotta from city index. nice to see you.