The race to be the next leader of Britain's ruling-Conservative Party and the country's prime minister is into its final leg, with the September outcome likely to shape the fortunes of sterling, gilts and UK stocks in coming months.
The contest between foreign minister Liz Truss and former finance minister Rishi Sunak to succeed Boris Johnson has centred on clear policy dividing lines.
Sunak has vowed to control inflation and accused his rival of pushing for unfunded tax cuts that only fuel price pressures. Truss has said her priority is to kickstart growth and the tax cuts she plans to do will not be inflationary.
Here's a look at some of the assets that could emerge as likely winners and losers.
STERLING RESPITE?
The pound could be a short-term winner. If either candidate embarks on tax cuts, the economy could get a short-term boost and the Bank of England (BoE) may be inclined to keep hiking rates to ward off further price pressures. Read full story
The sterling has slid 10% against the dollar this year. That's partly because the BoE has hiked at a slower pace than the Federal Reserve, even with Thursday's big rate hike.
A BoE more determined to raise rates because of looser fiscal policy should help the sterling.
But its longer-term fortunes will be tied to the economy. The BoE has just warned of a recession with a peak-to-trough fall in output of 2.1%.
If lower taxes fail to stimulate growth as Truss predicts, and worsens government finances, the sterling could struggle. Her proposal to review BoE independence could also weigh. Any greater government role in monetary policy would hurt confidence in Britain's economy.
GILTS GROUNDED
British government bonds, or gilts, are in the losers' camp for now. Investors sense the outcome, especially if Truss wins, will lead to more fiscal stimulus, higher inflation and rates.
Citi forecasts a further net fiscal boost of 40 billion pounds ($49 billion) over the coming 12 months, adding 0.8 percentage points (PPS) to economic growth by the end of 2023 and 0.4 PPS to underlying inflation by 2024.
ING economist James Smith said that 30 billion pounds of tax cuts, as proposed by Truss, would likely require an extra 25-50 bps of BoE tightening.
Higher rates for longer could further lift 10-year gilt yields, already up almost 100 bps this year to 1.92% GB10YT=RR.
LEVELLING UP THE FTSE
Higher bond yields could hurt equities, especially growth stocks, said Investec chief economist Philip Shaw, noting the difficulty in making sector-specific conclusions just yet.
"For example, hypothetically are we looking at more levelling up? If we are, perhaps infrastructure stocks could get a boost, but we were hearing Truss was trying to cut salaries outside London, which doesn't exactly signal a commitment to levelling up," he said.
Truss has backtracked on a pledge to introduce regional pay boards. Johnson's "levelling up" agenda to reduce regional inequalities helped his 2019 election win.
Truss' promise to halt an increase in corporation tax also means stock markets might welcome a Truss victory over a Sunak one, although the outlook for the economy will likely remain the bigger driver.
The FTSE 100 is up just 0.9% in 2022 but has outperformed European shares which are down 10%.
DEFENCE, RENEWABLES, INSURERS
Some sectors were in focus as the contest plays out.
AJ Bell's head of investment analysis Laith Khalaf said Truss' plans to raise defence spending to 3% of economic growth could give defence stocks "a little pump".
Focus on security spending following Russia's invasion of Ukraine has helped lift the FTSE 350 aerospace and defence sub-index. FTNMX502010 almost 15% this year, versus a broader 1.8% drop for the FTSE 350.FTLC.
Khalaf added that a Sunak victory could boost the renewable sector given Sunak's "full-throated commitment to net zero".
Truss has said she will review how Britain will reach its 2050 net zero targets to see how it can be done in a more "market-friendly" way. Read full story
Finally, insurers such as Aviva AV.L and Legal & General could be among the winners.
Truss has said she wants to reform Solvency II rules, a legacy of EU membership, which govern the number of capital insurers need to hold against their investments.
Insurers are lobbying to hold less capital against riskier assets such as infrastructure, a change which they say will help them fund economic growth.
INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.
At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.
Bhatt was born in 1984 in Poquoson, Virginia, to immigrant parents from Gujarat, India. His father, an aerospace engineer, worked at NASA. He grew up in a household where English was a second language and money was limited. He later attended Stanford University, where he studied physics and earned a master’s degree in mathematics.
In 2013, Bhatt co-founded Robinhood with Vlad Tenev, a fellow Stanford graduate. The platform introduced commission-free stock trading to retail investors in the United States and later expanded into retirement accounts and high-yield savings products. The company gained widespread attention during the Covid-19 pandemic, when trading activity surged around so-called meme stocks.
Robinhood went public in 2021 at the height of the retail investing boom. Bhatt served as co-CEO with Tenev until 2020, when he moved into the role of chief creative officer. In 2024, he stepped down from his executive position but continues to serve on Robinhood’s board of directors while retaining his 6 per cent stake.
Robinhood’s stock has seen significant gains over the past year, rising by about 400 per cent. The increase has been linked to a boost in cryptocurrency-related sales, new products such as individual retirement accounts and high-yield savings, and a strong performance in 2024, when the company reported USD 3 billion (£2.2 billion) in revenue.
Bhatt’s recognition in the Forbes 400 list underscores the continuing influence of technology entrepreneurs in the American financial sector. His career reflects the trajectory of several Indian-origin leaders in the United States, who have made a mark in technology and finance in recent years.
Forbes’ annual ranking of the 400 wealthiest Americans is based on estimates of net worth, which include publicly disclosed stakes in companies, real estate holdings, and other assets. Bhatt joins the ranks of young billionaires who have built fortunes through technology-driven ventures.
In addition to his role with Robinhood, Bhatt has been noted for his early life influences. Growing up in Virginia, he was exposed to science and technology through his father’s aerospace career. His academic path at Stanford provided the foundation to pursue entrepreneurial opportunities in financial technology.
Robinhood, under the leadership of Bhatt and Tenev, has changed how millions of Americans approach investing by lowering barriers to entry. While Bhatt is no longer in an executive role, his continued stake in the company keeps him closely tied to its growth and future direction.
Bhatt’s inclusion in the 2025 Forbes 400 as one of the youngest billionaires highlights his role in shaping retail investing and signals the growing presence of Indian-origin entrepreneurs in the US technology and finance industries.
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Starmer dismissed Mandelson on Thursday after reading emails published by Bloomberg in which Mandelson defended Jeffrey Epstein following his 2008 conviction. (Photo: Getty Images)
A CABINET minister has said Peter Mandelson should not have been made UK ambassador to the US, as criticism mounted over prime minister Keir Starmer’s judgment in appointing him.
Douglas Alexander, the Scotland secretary, told the BBC that Mandelson’s appointment was seen as “high-risk, high-reward” but that newly revealed emails changed the situation.
“If Keir knew then what we know now, he would not have made that appointment,” he later told LBC.
Starmer dismissed Mandelson on Thursday after reading emails published by Bloomberg in which Mandelson defended Jeffrey Epstein following his 2008 conviction. Mandelson wrote to Epstein: “I think the world of you and I feel hopeless and furious about what has happened … Your friends stay with you and love you.”
Stephen Doughty, the Foreign Office minister, told MPs the messages showed Mandelson’s relationship with Epstein was “materially different from that known at the time of his appointment.”
Mandelson, who admitted during vetting that he had maintained links with Epstein and regretted doing so, is said to feel ill-treated.
Labour MPs criticised the handling of the affair. Paula Barker said the delay in removing Mandelson had “eroded trust,” Charlotte Nichols said he should “never have been appointed,” and Sadik Al-Hassan questioned the vetting process.
The episode has drawn wider scrutiny of Starmer’s decision-making. It comes after deputy prime minister Angela Rayner resigned last week over unpaid stamp duty. Some MPs turned attention to Morgan McSweeney, Starmer’s chief of staff, who played a role in Mandelson’s appointment.
In a letter to staff, Mandelson said being ambassador was “the privilege of my life” and he regretted the circumstances of his departure. James Roscoe, his deputy, will serve as acting ambassador.
The Financial Times reported that Global Counsel, the lobbying firm co-founded by Mandelson, is preparing to cut ties with him.
TWO Conservative MPs have launched a petition to stop Leicester City Council cutting back this year's Diwali celebrations.
Shivani Raja, MP for Leicester East, and Neil O'Brien, who represents nearby Harborough, Oadby and Wigston, started the Change.org petition on Wednesday (10) after the council announced plans to remove key elements from the October 20 event.
Safety experts have decided to cut the stage show, Diwali Village and fireworks from this year's celebrations on Belgrave Road, known as Leicester's Golden Mile. The changes follow concerns about crowd safety after 55,000 people attended last year's event.
Under the new plans, the festival will keep its lights display of more than 6,000 bulbs and the Wheel of Light. However, there will be no fireworks, Diwali Village at Cossington Park, food stalls, cultural performances, rides or activities.
The council will still close Belgrave Road so people can visit restaurants and shops safely.
"Let's not allow this festival to become a shadow of its former self," the petition said. The MPs want the council to bring back the full Diwali experience and work with community leaders and the Belgrave Business Association to create a safe plan that keeps the traditions.
A Safety Advisory Group made up of police and emergency services said the extra activities "compromise public safety".
Leicester City mayor Sir Peter Soulsby said last week: "I completely understand and share the great desire to make Leicester's Diwali celebrations as good as can be. I thought that some of the suggestions put forward by the local community were achievable, but the Safety Advisory Group has rejected them all. I'm disappointed that as a result there won't be any additional activities, and I hope this is something the SAG will review next year."
The council said it needs to prevent "potentially dangerous crowd massing" seen in the past two years. The MPs had earlier written to Leicestershire Police asking them to reconsider the restrictions, arguing that the decision "will undermine the unique atmosphere that makes these celebrations so special and could damage Leicester's reputation as a centre for multicultural celebration".
They suggested police should provide more officers instead of cutting the festival.
Graham Callister, the council's head of festivals, events and cultural policy, said scaling back would create "additional space needed – and more importantly, less congestion – to safely welcome the crowds".
Councillor Vi Dempster explained: "Unfortunately, Leicester's annual Diwali festival has become a victim of its own success. We're being strongly advised by our emergency service partners and crowd control experts that it cannot continue safely in its current format due to the unrestricted and growing crowd numbers that it attracts, and that's a warning we must take extremely seriously."
The Leicester Diwali celebration is often described as one of the biggest outside India and has run on the Golden Mile for over 40 years.
(PTI)
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Chandra Nagamallaiah (R) was stabbed and beheaded on duty; Yordanis Cobos-Martinez was arrested and charged for the killing.
A STAFF MEMBER at Downtown Suites Dallas, US, was killed on Wednesday (10) morning. Chandra Nagamallaiah, 50, was stabbed and beheaded on duty in front of his wife and son, according to reports.
Yordanis Cobos-Martinez, 37, was arrested and charged in the killing, which reportedly stemmed from an argument over a broken washing machine, media reports said, citing the Dallas Police Department.
Police responded to a stabbing at Downtown Suites around 9am and the officers found Cobos-Martinez covered in blood and armed with a machete, the report said. He allegedly struck Nagamallaiah multiple times with a bladed weapon and beheaded him. Dallas Fire-Rescue found the victim dead at the scene.
Cobos-Martinez was charged with capital murder and allegedly admitted in a recorded interview to killing Nagamallaiah with a machete, according to the affidavit cited by NBC 5.
A witness told police she and Cobos-Martinez were cleaning a room when Nagamallaiah told him not to use a broken washing machine, according to the affidavit.
Cobos-Martinez allegedly grew angry that Nagamallaiah asked the witness to translate instead of speaking to him directly, the affidavit stated. Surveillance video also showed Cobos-Martinez leaving the room, returning with a machete and attacking Nagamallaiah.
The victim’s wife and son tried to fight off Cobos-Martinez, who was allegedly searching Nagamallaiah’s pockets during the attack. Nagamallaiah tried to escape but fell, said witness Stephanie Elliott.
“He just kept hitting him until he decapitated him,” Elliott said. “I could not believe anybody would do another human being that way.”
"Our hearts are absolutely broken for the victim's family, who witnessed this unimaginable act of violence," said Kamalesh “KP” Patel, AAHOA chairman. "Hotels are not just workplaces for our members and their teams – they are homes, businesses and community spaces. The brutality of this crime is beyond comprehension and our thoughts and prayers are with the loved ones, the property owners, and all staff who are grieving this senseless loss."
AAHOA president and CEO Laura Lee Blake called it one of the most horrific crimes to impact a hotel workplace in recent memory.
“Our hotelier community is devastated and we stand united with our members and their teams during this incredibly painful time,” Blake said. “No one should ever face such violence while simply doing their job.”
The association is providing resources to help hoteliers and staff manage difficult situations, including guidance on handling confrontational guests, de-escalating conflicts and strengthening hotel security.
"We are committed to advocating for enhanced security measures and the implementation of comprehensive safety protocols to protect members of our community," Patel said. "We encourage AAHOA members and the industry to reach out for support or resources you may need during this time. AAHOA is dedicated to creating a platform where concerns can be raised and solutions collaboratively developed. Let us use this moment to reinforce our commitment to each other's safety and well-being, continuing to foster a professional environment that preserves and upholds the integrity and resilience of our industry."
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Residents sit in a rescue boat as they evacuate following monsoon rains and rising water levels in the Chenab River, in Basti Khan Bela, on the outskirts of Jalalpur Pirwala, Punjab province, Pakistan, September 10, 2025. REUTERS/Quratulain Asim
OVER two million people have been forced to leave their homes as devastating floods continue to sweep across Pakistan's eastern regions, authorities announced.
The worst-hit area is Punjab province, where more than two million residents have been evacuated. An additional 150,000 people have fled Sindh province, according to national disaster management chief Inam Haider Malik, who warned that the "number may rise over the coming days".
The flooding has claimed at least 946 lives across Pakistan since late June, with monsoon rains and swollen rivers wreaking havoc throughout the country. Punjab province alone has recorded 97 deaths.
The emergency response has faced tragic setbacks. On Thursday (11), nine people died when a rescue boat capsized near the historic city of Multan whilst carrying flood victims to safety. The boat had successfully rescued 24 people from flooded villages before it overturned, though the remaining 15 passengers were pulled from the water alive.
This follows another boat accident earlier this week, when five people died in a similar incident on the outskirts of Jalalpur Pirwala city.
Rescue teams are going door-to-door to relocate villagers and their livestock using small boats, but these vessels must navigate dangerous strong currents. Officials say the rescue work is "tough because people are not cooperating", as many residents refuse to leave without their animals - often their main source of income.
The floods have submerged over 4,500 villages in Punjab province alone, affecting more than 4.4 million people since late August. Punjab, home to half of Pakistan's 240 million population, is considered the country's breadbasket, making the agricultural damage particularly severe.
Many families initially chose to stay at home to protect their property despite the flood risks. However, with large areas of farmland and houses destroyed, the human cost continues to mount in a country where 40 per cent of residents live below the poverty line.
The international community has begun responding to the crisis. This week, the United Nations allocated $5 million to support Pakistan's flood response, whilst the US State Department approved funding and deployed disaster response personnel.
Pakistan's National Disaster Management Authority has delivered tonnes of relief supplies, including blankets, tents and water filtration devices to flood-affected areas in Punjab.
Facing the scale of the disaster, Pakistani authorities declared a climate emergency this week. Prime minister Shehbaz Sharif has ordered officials to develop a 300-day plan to address the challenges posed by climate change.
Pakistan's geography makes it extremely vulnerable to climate change impacts, with the country facing both extreme heat and torrential rains. Melting glaciers have also created new lakes at risk of dangerous outbursts.
Malik said it would take weeks for floodwaters to recede before "rehabilitation work" could begin on thousands of damaged villages and fields.
The current floods echo Pakistan's 2022 disaster, when months of heavy rain killed more than 1,700 people and affected over 30 million in one of the deadliest flood events in history.