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U.K. Treasury chief Jeremy Hunt on Monday reversed most of an economic package announced by the government just weeks ago, including a planned cut to income tax . In a bid to soothe turbulent financial markets, Hunt said he was scrapping “almost all” the tax cuts announced last month and signaled public spending cuts are on the way. He also scaled back a cap on energy prices designed to help households pay their bills. It will now be reviewed in April rather than lasting two years. “It is a deeply held Conservative value — a value that I share — that people should keep more of the money that they earn,” Hunt said. “But at a time when markets are rightly demanding commitments to sustainable public finances, it is not right to borrow to fund this tax cut.” Hunt was appointed Friday after Prime Minister Liz Truss fired Kwasi Kwarteng, who spent less than six weeks in the Treasury job. Truss and Kwarteng jointly came up with a Sept. 23 announcement of 45 billion pounds ($50 billion) in unf...

Analysts are concerned about a knock-on effect to the U.K.'s shadow banking sector in the event of a sudden rise in interest rates. Photo by Richard Baker | In Pictures | Getty Images LONDON — After last week's chaos in British bond markets following the government's Sep. 23 "mini-budget," analysts are sounding the alarm on the country's shadow banking sector. The Bank of England was forced to intervene in the long-dated bond market after a steep sell-off of U.K. government bonds — known as "gilts" — threatened the country's financial stability. related investing news This isn't the market bottom, Morgan Stanley says, naming 3 things that have to happen first Weizhen Tan a day ago Credit Suisse divides Wall Street as JPMorgan calls bank's capital 'healthy’ while others have doubts Hugh Son 3 days ago The panic was focused in particular on pension funds, which hold substantial amounts of gilts, while a sudden rise in interest ra...