Truss<\/strong> has told Bloomberg\u2019s Odd Lots podcast<\/a> that it is wrong that unelected central bankers can undermine (as she sees it) elected politicians.<\/p>\n Truss<\/strong>, who was briefly prime minister in September and October 2022, said:<\/p>\n \u201cI think the Bank of England needs to be accountable to politicians. I think the current system doesn\u2019t work. This is why I\u2019m very sympathetic to what Donald Trump is saying about the Fed.\u201d<\/p>\n<\/blockquote>\n In the interview, Truss <\/strong>explains that people who owned assets and capital had done very well from the easy money created by the Bank of England (BoE) since the financial crisis, while that loose policy also made it hard for young people to buy homes.<\/p>\n Given the importance of monetary policy of setting the allocation of assets within society, she argues that it\u2019s wrong that people who make those decisions aren\u2019t accountable to the electorate.<\/p>\n She says:<\/p>\n \u201cIt\u2019s also very difficult, as I found as prime minister, to combine fiscal and monetary policy if you don\u2019t hold one of the levers. So, I think it\u2019s got to change.<\/p>\n I think there is a reckoning coming for the central banks, not just in Britain but also in the United States, also the ECB.<\/p>\n The current system does not work.<\/p>\n<\/blockquote>\n Truss, who lost power after her mini-budget spooked the financial markets, crashing the pound<\/a> and driving up borrowing costs, also claimed the BoE had \u201csabotaged\u201d what she tried to do because she had been a critic of central banks, and wanted the Treasury to have a larger role setting the Bank\u2019s mandate.<\/p>\n \u201cThey didn\u2019t like their power being challenged.\u201d<\/p>\n<\/blockquote>\n Truss has previously blamed the Bank of England for failing to anticipate the market consequences of her budget. Governor Andrew Bailey has rejected that criticism<\/a>, pointing out that the Bank used its intervention tools to stabilise the bond market and protect pension funds.<\/p>\n In her Bloomberg interview, Truss argues that democratically elected leaders shouldn\u2019t \u201ccowtow\u201d, criticises the \u201cfailing economic orthodoxy\u201d and warns that Britain is heading for a \u201cvery, very serious crisis.\u201d<\/p>\n Truss, who lost her parliamentary seat in last year\u2019s general election, says the UK now faces an \u201ceconomic doom loop of higher taxes, lower growth, higher debt, and it\u2019s very difficult now to see the political way out of that.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.29 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Professor: Truss commments are troubling<\/p>\n Professor Costas Milas, of the Management School at the University of Liverpool, is very troubled by Liz truss\u2019s comments about central banks and the conduct of monetary policy.<\/strong><\/p>\n Prof<\/strong> Milas<\/strong> tells us:<\/p>\n Clearly, Trump wants to take full control of US monetary policy and is not shy of saying so. Is it the case of Liz Truss advocating a similar scenario for the UK?<\/p>\n More worryingly, Liz Truss needs to explain how to go about that. In the US, Trump is forcing Fed Governor Lisa Cook out of the Fed with a series of unproved (so far) accusations, at the same time while giving a \u201csignal\u201d that he will follow similar tactics with the remaining Fed Governors.<\/p>\n Is former PM Liz Truss advocating a similar strategy to be pursued by Sir Keir Starmer, or something else in order to bring monetary policy back in the hands of the UK government?<\/p>\n<\/blockquote>\n Share<\/a>Zero farmers would vote Labour again after inheritance tax row, poll finds Keir Starmer enjoyed a boost from the rural community during the 2024 general election after he and environment secretary Steve Reed went on tour of the farming conferences and other countryside events to assure those in attendance that they understood their struggles.<\/strong><\/p>\n But now, that support has evaporated, according to farmers polled by the Country Land and Business Association (CLA).<\/p>\n This is due to fury over the inheritance tax on agricultural assets brought in at last year\u2019s budget<\/a>, which is projected to put some farms out of business when they are passed on.<\/p>\n A survey of 490 farmers and landowners by the rural business group puts Reform UK (36%) just behind the Conservatives (38%) in farmer support, with Labour attracting 0%.<\/p>\n \u201cThe Treasury says these reforms will barely touch rural Britain,\u201d CLA<\/strong> president Victoria<\/strong> Vyvyan<\/strong> said, adding:<\/p>\n \u201cOur polling shows they will force hard choices on farms that have sustained communities for generations \u2013 selling land, laying off workers, shelving future plans.<\/p>\n \u201cRural Labour MPs can see what\u2019s coming. They know it will drain the life from the countryside and strip away the trust of the people who sent them to Westminster.<\/p>\n \u201cIf they support it, their voters won\u2019t forget.\u201d<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Supporters of central bank independence argue that it has played an important role in recent decades in subduing inflation, and persuading investors that governments wouldn\u2019t inflate their debts away.<\/strong><\/p>\n Finland\u2019s central bank chief Olli Rehn (who we heard from earlier<\/a>) has made this point this morning:<\/p>\n ECB’S REHN:<\/p>\n IF FED’S INDEPENDENCE WERE TO CRUMBLE, INFLATION WOULD INEVITABLY PICK UP<\/p>\n \u2014 PiQ (@PiQSuite) August 28, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a005.43 EDT<\/p>\n Liz Truss\u2019s<\/strong> comments show how Trump\u2019s efforts to roll back the decades-old consensus on the value of independent monetary policy has \u201can eager audience in some of the world\u2019s largest economies\u201d, point out Bloomberg.<\/p>\n They add:<\/p>\n In the UK, officials for the populist Reform UK, which has led public opinion polls for months, have suggested they might be willing to rein in some of the BOE\u2019s powers. And Reform\u2019s leader, Nigel Farage \u2014 a long-time Trump supporter \u2014 has privately discussed the possibility of taking back independence from the central bank, Bloomberg reported<\/a> in June, citing people familiar with the discussions.<\/p>\n<\/blockquote>\n Share<\/a>How have you been affected by the rise in food prices?<\/p>\n With UK food inflation now hitting 4.2%, we would like to hear from people on how they feel about food inflation and if it\u2019s affected their shopping habits\u2026.<\/p>\n Share<\/a>Truss: ‘a reckoning is coming’ for central banks<\/p>\n Former UK prime minister Liz Truss is backing Donald Trump in his fight with the Federal Reserve.<\/strong><\/p>\n Truss<\/strong> has told Bloomberg\u2019s Odd Lots podcast<\/a> that it is wrong that unelected central bankers can undermine (as she sees it) elected politicians.<\/p>\n Truss<\/strong>, who was briefly prime minister in September and October 2022, said:<\/p>\n \u201cI think the Bank of England needs to be accountable to politicians. I think the current system doesn\u2019t work. This is why I\u2019m very sympathetic to what Donald Trump is saying about the Fed.\u201d<\/p>\n<\/blockquote>\n In the interview, Truss <\/strong>explains that people who owned assets and capital had done very well from the easy money created by the Bank of England (BoE) since the financial crisis, while that loose policy also made it hard for young people to buy homes.<\/p>\n Given the importance of monetary policy of setting the allocation of assets within society, she argues that it\u2019s wrong that people who make those decisions aren\u2019t accountable to the electorate.<\/p>\n She says:<\/p>\n \u201cIt\u2019s also very difficult, as I found as prime minister, to combine fiscal and monetary policy if you don\u2019t hold one of the levers. So, I think it\u2019s got to change.<\/p>\n I think there is a reckoning coming for the central banks, not just in Britain but also in the United States, also the ECB.<\/p>\n The current system does not work.<\/p>\n<\/blockquote>\n Truss, who lost power after her mini-budget spooked the financial markets, crashing the pound<\/a> and driving up borrowing costs, also claimed the BoE had \u201csabotaged\u201d what she tried to do because she had been a critic of central banks, and wanted the Treasury to have a larger role setting the Bank\u2019s mandate.<\/p>\n \u201cThey didn\u2019t like their power being challenged.\u201d<\/p>\n<\/blockquote>\n Truss has previously blamed the Bank of England for failing to anticipate the market consequences of her budget. Governor Andrew Bailey has rejected that criticism<\/a>, pointing out that the Bank used its intervention tools to stabilise the bond market and protect pension funds.<\/p>\n In her Bloomberg interview, Truss argues that democratically elected leaders shouldn\u2019t \u201ccowtow\u201d, criticises the \u201cfailing economic orthodoxy\u201d and warns that Britain is heading for a \u201cvery, very serious crisis.\u201d<\/p>\n Truss, who lost her parliamentary seat in last year\u2019s general election, says the UK now faces an \u201ceconomic doom loop of higher taxes, lower growth, higher debt, and it\u2019s very difficult now to see the political way out of that.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.29 EDT<\/p>\n Trump’s challenge to Fed independence holds global risk, Finland’s Rehn warns<\/p>\n Finland\u2019s central bank chief has warned that President Donald Trump\u2019s attacks on the US. Federal Reserve have a significant impact on the financial markets and the world economy.<\/strong><\/p>\n Olli<\/strong> Rehn<\/strong> warned in a speech this morning that the Fed\u2019s independence has remained an inviolable principle since the 1980s, but was now under attack, Reuters reports.<\/p>\n Rehn <\/strong>explained:<\/p>\n \u201cNow, however, this principle is wobbling badly. This could have substantial, global knock-on effects on both the financial markets and the real economy.\u201d<\/p>\n<\/blockquote>\n Rehn\u2019s comments follow Donald Trump\u2019s attempt to fire Federal Reserve governor Lisa Cook over unconfirmed allegations of mortgage fraud<\/a>; Cook is refusing to step down, and pledging to sue the Trump administration.<\/p>\n Trump has also repeatedly criticised the Fed, and its chair Jerome Powell, for not cutting US interest rates.<\/p>\n Share<\/a><\/p>\n The FCA\u2019s investigation into Drax<\/a> comes five months after the company\u2019s former top lobbyist accused it of \u201cmisleading the public, government and its regulator\u201d over its sourcing of wood for biomass pellets.<\/strong><\/p>\n In a claim for unfair dismissal, Rowaa Ahmar, Drax\u2019s former head of public affairs, said evidence suggested Drax was \u201cunable to prove that it only sourced sustainable wood for its biomass, and that it was in fact using unsustainable wood\u201d.<\/p>\n More here<\/a>.<\/p>\n Share<\/a><\/p>\n An accounting probe at WH Smith has delayed its former finance chief from joining high street baker Greggs.<\/strong><\/p>\n Greggs<\/strong> has told the City that Robert<\/strong> Moorhead<\/strong> has asked to defer his appointment until Deloitte has conducted its review into a profit overstatement which rocked WH Smith\u2019s<\/strong> share price last week.<\/p>\n WH Smith<\/strong> startled investors on 21 August by slashing its full-year profit forecasts and reveaing it had discovered an overstatement in profits at its US arm.<\/p>\n The problem is due to the \u201caccelerated recognition of supplier income\u201d in the US \u2013 the practice where retailers receive money from their suppliers for, for example, promoting certain products or hitting certain sales targets. Under accounting rules, such income can only be recorded in the financial year it is received.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.59 EDT<\/p>\n Swiss growth slowsThe historic city center of Zurich. Photograph: bluejayphoto\/Getty Images\/iStockphoto<\/p>\n Economic growth in Switzerland has slowed, as the country braces for a bruising hit from Donald Trump\u2019s trade wars.<\/strong><\/p>\n Switzerland\u2019s GDP adjusted for sporting events increased by just 0.1% in the second quarter of this year, down on the 0.7% gorwth recorded in January-March.<\/p>\n Switzerland\u2019s State Secretariat for Economic Affairs (SECO)<\/strong> warned that new tariffs on sales to the US will hurt growth, saying:<\/p>\n After the above-average growth seen in the previous quarter, the anticipated correction has now occurred. Industrial value added and exports declined sharply, whereas the services sector delivered broadbased growth.<\/p>\n An updated economic scenario from SECO shows that, as a result of higher US import tariffs, the Swiss economy is likely to grow more slowly than previously expected, particularly in 2026.<\/p>\n<\/blockquote>\n Trump has set a 39% tariff on Swiss exports to the US, leaving the country scrambling to agree a better trade deal.<\/p>\n Share<\/a>Drax shares tumble 10%<\/p>\n Shares in power generator Drax have tumbled by 10% after it revealed this morning it is being investigated by the City watchdog.<\/strong><\/p>\n Traders drove Drax\u2019s share price down to 630p in early London trading, down from 703.5p last night, following the news that the FCA is probing whether its recent annual reports comply with UK Listing Rules.<\/p>\n As covered earlier (see 7.18am post for more details<\/a>), the investigation appears to centre on Drax\u2019s statements regarding the sourcing of the biomass it uses in its wood-burning power station.<\/p>\n Share<\/a><\/p>\n Over in Manila, the Philippines central bank has cut interest rates despite trade war concerns.<\/strong><\/p>\n The Bangko Sentral ng Pilipinas lowered its overnight target reverse repurchase rate by 25 basis points (a quarter of one percentage point) to 5% today, in line with expectations.<\/p>\n It cut borrowing costs after concluding that inflation expectations remain well-anchored, with inflation forecast to average 1.7% this year.<\/p>\n But, it added:<\/p>\n Meanwhile, possible electricity rate adjustments and higher rice tariffs could raise inflationary pressures over the policy horizon.<\/p>\n The Monetary Board observed that domestic demand has held firm. However, the impact of US policies on global trade and investment continue to weigh on global economic activity. This could temper the outlook for the Philippine economy.<\/p>\n<\/blockquote>\n Share<\/a>Ford first manufacturer to receive UK’s \u00a33,750 EV grant<\/p>\n Back in the car sector, Ford has today become the first manufacturer to be awarded the UK\u2019s full electric car grant of \u00a33,750, cutting the cost paid by consumers.<\/strong><\/p>\n Two Ford models, the Puma Gen-E and e-Tourneo Courier, now qualify for the grant, the Department for Transport has announced.<\/p>\n They are the first to benefit from the full \u00a33,750 subsidy. Another 26 models now get the smaller grant, which knocks \u00a31,500 off their price.<\/p>\n The scheme is meant to make it cheaper and easier to own an electric car.<\/p>\n Transport Secretary Heidi<\/strong> Alexander<\/strong> said:<\/p>\n We\u2019re putting money back in people\u2019s pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to \u00a33,750 on EVs.<\/p>\n Our measures are driving competition in the UK EV market, boosting economic growth and supporting jobs and skills as part of our Plan for Change.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a002.51 EDT<\/p>\n Drax being investigated by FCA over biomass sourcing<\/p>\n Newsflash: UK energy producer Drax is being investigated by the Financial Conduct Authority (FCA).<\/strong><\/p>\n Drax<\/strong> has told the City that it learned on Tuesday that the City watchdog had begun an investigation into \u201chistorical statements regarding Drax\u2019s biomass sourcing and the compliance of Drax\u2019s 2021, 2022 and 2023 Annual Reports with the Listing Rules and Disclosure Guidance and Transparency Rules.\u201d<\/p>\n Drax<\/strong>, which operates a wood-burning power station in North Yorkshire, added that it will cooperate with the FCA\u2019s<\/strong> investigation.<\/p>\n The FCA<\/strong> has confirmed that it has opened an investigation, without giving more information.<\/p>\n The company has faced pressure to disclose full details of its tree consumption; last year it agreed to pay \u00a325m<\/a> for submitting inaccurate data on the sourcing of wood pellets.<\/p>\n Share<\/a><\/p>\n Elsewhere in the auto industry this morning, new data shows that Britain\u2019s car production grew for the second month in a row in July.<\/strong><\/p>\n Car production rose 5.6% in July from last year to 69,127 units, the Society of Motor Manufacturers and Traders (SMMT) reported.<\/p>\n However, total vehicle production dropped by 10.8% at 72,006 units, due to a fall in commercial vehicle manufacturing.<\/p>\n Car production recovery continues in July<\/p>\n \ud83d\ude97 Car production rises for second successive month, up 5.6% in July to 69,127 units. \u2014 SMMT (@SMMT) August 28, 2025<\/a><\/p><\/blockquote>\n Commercial vehicle (CV) output fell -81.1%, reflecting plant restructuring and a bumper month last year, when the sector recorded the best July in 17 years which, when combined, dragged total vehicle production down -10.8% to 72,006 unitshttps:\/\/t.co\/xDdFYQF8sb<\/a> pic.twitter.com\/OgHLWHARGM<\/a><\/p>\n \u2014 SMMT (@SMMT) August 28, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n The European Automobile Manufacturers\u2019 Association are also concerned that European take-up of electric cars is not rising faster.<\/strong><\/p>\n Sigrid de Vries<\/strong>, director general of ACEA<\/strong>, says:<\/p>\n \u201cBattery-electric vehicles still account for just 15.6% of the EU car market. Not only is this well below the level where it needs to be at this point in the transition the share in unevenly distributed across member states.<\/p>\n To accelerate uptake, Europe must continue to expand public recharging infrastructure, secure lower recharging prices, and ensure well-coordinated purchase incentives schemes. The market data demonstrates why a technology-neutral approach must drive this transition.<\/p>\n EVs will lead the charge, but there must also be space for (plug-in) hybrids, range extenders, highly efficient internal combustion-engine (ICE) vehicles, hydrogen and decarbonised fuels.\u201d<\/p>\n<\/blockquote>\n Share<\/a>Introduction: Tesla sales fall 40% across Europe<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/strong><\/p>\n Tesla\u2019s<\/strong> European sales slump has continued, as it faces rising competition in the battery-powered electric car market.<\/p>\n New sales figures released by the European<\/strong> Automobile<\/strong> Manufacturers<\/strong> Association<\/strong> (ACEA<\/strong>) this morning show that Tesla shipments tumbled 40% last month. The company sold 8,837 vehicles across the European Union, the EFTA trade block and the UK in July, down from 14,769 in July 2024.<\/p>\n The sales slump, which began at the start of this year, continued despite the recent revamp of Tesla\u2019s signature Model Y, indicating that the backlash against CEO Elon Musk\u2019s<\/a> political views could still be hurting the company.<\/p>\n Musk\u2019s recent break-up with Donald Trump hasn\u2019t, yet, revived the company\u2019s fortunes. July\u2019s 40% sales fall was worse than the total for 2025 to date, which are down 33% for the January-July period.<\/p>\n Tesla<\/strong> also faces rising competition, particularly from Chinese manufacturers. BYD<\/strong>, the Shenzhen-headquartered carmaker, more than tripled its sales year-on-year in July, up from 4,151 a year earlier to 13,503 last month, a rise of 225%.<\/p>\n This gave BYD<\/strong> a 1.2% market share, higher than Tesla\u2019s<\/strong> 0.8%.<\/p>\n\n
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\ud83d\ude9a Commercial vehicle output falls -81.1% reflecting restructuring and bumper month last year.
\u2b07\ufe0f Total vehicle production down -10.8% in the month to\u2026 pic.twitter.com\/yRgaDdoT9L<\/a><\/p>\n\n
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