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Thursday’s news briefing 

Wildfires are rapidly spreading across Los Angeles, destroying homes and businesses, in the worst fires the county has ever seen. At least 5 people have been killed.

At least five wildfires are raging in Los Angeles and neighbouring counties – three are completely uncontained

The ongoing spat between European leaders and American tech companies continues as well as pushback from Europe on Elon Musk’s continued meddling in European politics.

The chancellor is under pressure as the pound has dropped to its lowest level for more than a year and UK government borrowing costs have continued to rise as concerns about public finances and the economy grow.

Pound sterling continues to sink as UK economy ‘clearly on very shaky ground’

Pound sterling has continued to sell off this morning, and UK government bond yields have ticked higher as UK risk assets remain under pressure.

The pound fell below $1.23 against the dollar in early trade and is currently down 0.7 per cent against the dollar and 0.6 per cent against the euro.

Meanwhile, the domestically focused FTSE 250 index opened lower 0.6 per cent.

The day after 30-year government bond yields reached their highest this century, yesterday 10-year government yields jumped to 4.82 per cent, the highest since August 2008.

https://www.cityam.com/pound-sterling-continue-to-sink-as-uk-economy-clearly-on-very-shaky-ground/

Thursday’s front pages feature images from the rapidly spreading LA wildfires – the worst in Los Angeles history. At least five wildfires are now raging in Los Angeles and parts of its neighbouring counties – three of the blazes are completely uncontained.

Five people are confirmed dead and more than 137,000 people have been evacuated in what has become the most destructive wildfire in LA’s history.

Closer to home, the front pages report on the ongoing impact of the chancellor’s October Budget as the Treasury has been forced to intervene to calm the markets. 

The ongoing spat between European leaders and American tech companies continues to find space on the UK front pages, as well as the pushback from Europe on Elon Musk’s continued meddling in European politics. The incoming US director of counter-terrorism has told Britain to take back UK members of ISIS being held in Syria – including Shamima Begum, offering a key insight into how America plans to deal with its allies.

The stabbing death of a 14-year-old boy in London also makes several tabloid front pages as his mother opens up about how the London teen was groomed by a gang.

‘LA fires spreading’

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‘Fast-moving fires have torn through several neighbourhoods,’ reports The Guardian.

The Guardian features a harrowing image of the LA fires. The paper says the fast-moving wildfires have torn through several LA neighbourhoods. About 70,000 people were ordered to evacuate.

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‘Hollywood stars flee their homes,’ reports the Daily Mail.

The Daily Mail calls it ‘apocalyptic’ and says Hollywood stars have fled their homes – some, including Paris Hilton, have watched their homes burn to the ground.

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‘80,000 people evacuated,’ says The Times.

The Times also carries a dramatic image of the fires, noting that (at the time of writing) 80,000 people had been told to evacuate.

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‘Mass evacuations across Los Angeles,’ notes The Independent.

The Independent has a collage of images of the wildfires, noting that “four separate blazes threatened homes and lives”. The paper says mass evacuations have been ordered as out-of-control wildfires rage across Los Angeles.

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‘Flatlining growth, soaring debt charges and geopolitical tensions could damage plans,’ says the i.

The i newspaper speaks to a panel of “experts” who tell them that there is a “toxic combination” of flatlining growth, soaring debt charges and geopolitical tensions that could wreck her Budget plans. Ben Zaranko from the Institute of Fiscal Studies (IFS) calls it a “generational fiscal challenge”.

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‘Treasury forced to intervene to calm the market mayhem,’ says the Telegraph.

The Daily Telegraph leads with news that the Treasury has been forced to intervene to calm what the paper calls “market mayhem.” A Treasury spokesman said the fiscal rules were “non-negotiable” and there would be an “iron grip” on public finances

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‘Chancellor drawing up emergency spending cuts or tax rises,’ says the Mail.

The Daily Mail says the chancellor is drawing up options for emergency spending cuts or tax rises, because of a risk she will break her own fiscal rules. It says “Treasury sources” acknowledged Reeves could be forced to act as soon as March if borrowing costs continued to rise.

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‘Trump warned the EU will defend its borders,’ says the FT.

The FT leads with European leaders warning the incoming US president Donald Trump not to meddle in European borders, just one day after Trump refused to rule out taking Greenland by force. The paper quotes German Chancellor Olaf Scholz insisting borders must never be moved by force and France’s foreign minister saying the EU would not let another nation attack its borders.

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‘US tells Britain to take Shamima Begum back or risk US friendship,’ says The Times.

The Times leads with calls from Sebastian Gorka, the next US director of counter-terrorism, who has called for Britain to take back UK members of ISIS being held in Syria – including Shamima Begum. He says the US-UK “special relationship” depends on it.

While Trump threatens to invade Canada and his MAGA movement bullies and harasses Canadians and other US allies, Canadians are busy saving USians from burning alive. Canadian air crews in Los Angeles risked their lives to save US civilians. #palisadesfire
 
 
Mister Majestik@MrMajestikness
Let's see how the right wing traitors in the UK, deal with this one? How do they keep being Trump fans and support the return of Shamima Begum #Shamimabegum #Isis #Trump
Fraser Stephen@FraserJStephen
We stripped Shamima Begum of her citizenship and left her overseas with the guy who radicalised and married a 14yo, to the overwhelming glee of the people currently feigning anger over grooming.

Joe Biden says he could have defeated Donald Trump

In an exclusive interview with USA Today, US President Joe Biden expressed confidence that he could have defeated Donald Trump in a potential re-election bid. However, the 82-year-old acknowledged uncertainty

Hollywood Hills evacuated as LA fire spreads

Residents in the Hollywood Hills have been ordered to evacuate as wildfires continue to tear through Los Angeles, posing an “immediate threat to life,” according to the Los Angeles Fire

Price hikes are coming as firms battle Reeves tax raid, Bank of England survey suggests

Inflationary pressures are likely to persist this year as firms prepare to hike prices to combat the effects of Rachel Reeves’ tax-raiding Budget, a survey from the Bank of England suggests.

The Bank’s latest decision maker panel, which surveys finance chiefs around the country, showed that firms’ inflation expectations picked up in December.

Expected price growth in the year ahead increased to four per cent, up from 3.8 per cent the month before. This was the highest level since April last year.

The survey also showed that realised price growth in the year to December increased to four per cent, up from 3.7 per cent the month before.

https://www.cityam.com/price-hikes-are-coming-as-firms-battle-reeves-tax-raid-bank-of-england-survey-suggests/

UK fintech funding races ahead of Europe

According to new figures, the UK’s fintech sector was beaten by only the US on total investment last year despite a sharp fall in funding on 2023 levels.

As global fintech investment fell 20 per cent globally to $43.5bn (£35.2bn), the UK attracted $3.6bn (£2.9bn) of total funding, more than the next five European countries combined, according to data from Innovate Finance.

Despite the sharp fall in new capital coming into the sector, industry figures are hoping for a resurgence in 2025.

“When we’ve been speaking with investors, they’re positive about 2025,” Janine Hirt, CEO of Innovate Finance, told City AM.

UK fintech funding races ahead of Europe
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