Business

Markets reacted positively to the British government’s decision to scrap most of its unfunded tax cuts. The yield on 30-year gilts fell back to around 4.2%, still higher than it was just before the mini-budget spooked investors in late September. The pound traded around $1.12, not far off its lows in recent days. Jeremy Hunt, the new chancellor, is reportedly mulling windfall taxes on banks and energy companies to help plug a fiscal gap still worth tens of billions of pounds. Big cuts to public spending are also in the offing.