Investors turned against the Reeves Budget after a late U‑turn on an income tax rise sent gilt yields higher. Many questioned fiscal credibility, saying pre‑Budget signals misled them. The shift threatens higher debt‑servicing costs and could complicate the government’s growth plans.

Michael Burry will shut his fund and return capital, arguing valuations—particularly in tech—are too high and out of step with fundamentals. The disclosure came as shares fell, with AI-linked stocks under pressure, sharpening doubts about the durability of this year’s rally.

An attempt by No 10 to head off a potential leadership challenge has misfired, intensifying pressure on the PM. Briefings seen as an effort by allies to undermine Health Sec Wes Streeting angered MPs and ministers, prompting calls for an apology as Starmer vowed to fight any contest.

UK unemployment rose to 5%, above forecasts, piling pressure on Reeves ahead of the Budget. Wage growth cooled, easing inflation risks and lifting gilts on hopes of BoE rate cuts. Business groups urged protection from tax rises as households face weaker pay momentum.