Mark Carney, the Canadian-born former governor of the Bank of England, defended a decade of austerity in the UK after 2010 by saying that the country existed on the “kindness of strangers”. Kwasi Kwarteng, who was dismissed last week as the country’s chancellor of the exchequer after 38 calamitous days in the job, will go down in history as a reckless gambler with this cosy arrangement.
A product of Eton public school and Cambridge University, Mr Kwarteng tested the UK bargain with international capital to destruction. It should not have been like that. Apart from anything else, Mr Kwarteng has a doctoral thesis in the 1695 re-coinage crisis that crashed the markets the year after the Bank of England was established.
It has happened again despite the historian’s knowledge of banking, and it will take the UK years to recover what’s been lost in these weeks.
After the late September “mini-budget” that triggered the run on the pound and the crisis in UK government gilts, I spotted Norman Lamont, the last Conservative chancellor to be sacked for crashing the pound, on a London street. Now Lord Lamont, the Conservative peer looked chipper. In three decades from now, it is entirely possible that the demeanour of Mr Kwarteng will be equally sanguine. While none of us can be harbingers of fate, I’m fairly certain of it.
Despite the historian’s knowledge of banking, and it will take the UK years to recover what’s been lost
Which makes the moral hazard imposed by ideologues such as Mr Kwarteng for the wealth and well-being of the country all the more unpalatable. The dismissed chancellor was bumptious in power. He did none of the groundwork necessary to accomplish his ambitious attempt to reframe the UK economic model. While grounded in economic history, Mr Kwarteng and his boss, Prime Minister Liz Truss, took the view that the markets would respond positively to their announcement.
The pair had appalling timing. An inflation spiral was already causing tremors throughout global markets. The cost of energy had soared as a result of the Ukraine war. Food commodity markets were similarly blighted and feeding inflation into general prices as well.
Brexit has proved a running handicap on British trade, as firms in Europe are quietly quitting on UK customers. The pound, which was already weak, has become enfeebled. Mr Carney was quoted in a newspaper last weekend estimating that in 2016, the British economy was 90 per cent the size of Germany’s. Now six years later, it has fallen to below 70 per cent.
The Truss-Kwarteng duo came in and gave the markets special reasons to deliver further rebukes. In keeping the 2016 Brexit spirit that the country "was fed up with experts", Mr Kwarteng failed to back up his £47 billion ($52.5bn) worth of future tax cuts with benchmarking figures from the Office for Budget Responsibility. It turned out that Britain has a good, robust system of providing market transparency on its public finances. The Kwarteng method triggered unforeseen impacts on the government bond markets, in particular a debt bomb in the pensions sector that could yet go global.
The Institute for Government, a leading London-based think tank, has already published a "lessons learned" note on the calamitous chancellor. Its director, Hannah White, points out that, in making the moves that she did, Ms Truss was less interested in recognising the value of independent institutions and that she was in a “strategy designed to deflect criticism that the government has been responsible for rising interest rates”.
The UK government package had a core component of capping energy bills that, in a difficult situation, could reduce household spending on power bills from £6,000 this year to £2,500. That pledge was likely to be far costlier than the tax cuts but also served as the reason why the tax cuts were unaffordable. Now, the strategy has been completely destroyed because people are looking at monthly increases in the thousands on their mortgage bills. The crunch in what every home has to pay has started this month and, by February or March, will be truly toxic for people’s finances.
New Chancellor and former foreign secretary, Jeremy Hunt, is acting already like he will have total scope to restore the benchmarking to the public finances. In his first set of interviews, he said taxes would have to go up. He may even be tempted to try to target the energy package, reducing its scope so that the well-off are not eligible. Unless mortgage payments come back down to, on average, double what people were paying in June this year, such tinkering would be politically impossible.
Further, Chatham House, another London-based think tank, says that until now foreign policy was made with “no consideration the UK’s ability to borrow in the markets”. In a note last week, its director said this is a luxury that the country can no longer enjoy. A worsening of trade relations with the EU would be punished afresh by the markets. Similarly, a tougher line on China that bleeds into economic relations with the East Asian giant is now not a tenable option.
Killing of Qassem Suleimani
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
A German university was a good fit for the family budget
Annual fees for the Technical University of Munich - £600
Shared rental accommodation per month depending on the location ranges between £200-600
The family had budgeted for food, books, travel, living expenses - £20,000 annually
Overall costs in Germany are lower than the family estimated
As proof that the student has the ability to take care of expenses, international students must open a blocked account with about £8,640
Students are permitted to withdraw £720 per month
UFC%20in%20Abu%20Dhabi
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The Greatest Royal Rumble card as it stands
50-man Royal Rumble
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Casket match The Undertaker v Chris Jericho
John Cena v Triple H
Matches to be announced
WWE World Heavyweight Championship, Raw Tag Team Championship, United States Championship and the Cruiserweight Championship are all due to be defended
Retirement funds heavily invested in equities at a risky time
Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.
Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.
The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.
The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.
Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.
The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.
• Bloomberg
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20WallyGPT%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2014%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESaeid%20and%20Sami%20Hejazi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3Cbr%3E%3Cstrong%3EInvestment%20raised%3A%20%3C%2Fstrong%3E%247.1%20million%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%20round%3C%2Fp%3E%0A
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
I Care A Lot
Directed by: J Blakeson
Starring: Rosamund Pike, Peter Dinklage
3/5 stars
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Results:
5pm: Maiden (PA) Dh80,000 2,200m | Winner: AF Al Montaqem, Bernardo Pinheiro (jockey), Ernst Oertel (trainer)
5.30pm: Maiden (PA) Dh80,000 1,200m | Winner: Daber W’Rsan, Connor Beasley, Jaci Wickham
6pm: Handicap (PA) Dh85,000 1,600m | Winner: Bainoona, Fabrice Veron, Eric Lemartinel
6.30pm: Handicap (PA) Dh80,000 1,600m | Winner: AF Makerah, Antonio Fresu, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 | Winner: AF Motaghatres, Antonio Fresu, Ernst Oertel
7.30pm: Handicap (TB) Dh90,000 1,600m | Winner: Tafakhor, Ronan Whelan, Ali Rashid Al Raihe
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Racecard
%3Cp%3E%0D5pm%3A%20Al%20Maha%20Stables%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%201%2C400m%0D%3Cbr%3E5.30pm%3A%20Al%20Anoud%20Stables%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C200m%0D%3Cbr%3E6pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%201%2C400m%0D%3Cbr%3E6.30pm%3A%20Arabian%20Triple%20Crown%20Round%202%20%E2%80%93%20Group%203%20(PA)%20Dh%20300%2C000%20(T)%202%2C200m%0D%3Cbr%3E7pm%3A%20Liwa%20Oasis%20%E2%80%93%20Group%202%20(PA)%20Dh300%2C000%20(T)%201%2C400m%0D%3Cbr%3E7.30pm%3A%20Dames%20Stables%20%E2%80%93%20Handicap%20(TB)%20Dh80%2C000%20(T)%201%2C400m%3C%2Fp%3E%0A
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
more from Janine di Giovanni
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
