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Liz Truss faces new rebellion over benefits payments

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Liz Truss faces new rebellion over benefits payments

Liz Truss is braced for a contemporary rebel over her financial plans with senior Conservative MPs threatening to vote towards the UK prime minister if she decides to chop advantages in actual phrases subsequent spring.

Truss is taking a look at elevating advantages consistent with common earnings progress slightly than inflation, a controversial transfer that has raised considerations over the impact on the price of residing disaster.

Common earnings progress together with bonuses was 5.5 per cent between Could and July, in line with the latest figures from the Workplace for Nationwide Statistics, whereas inflation is sort of twice as excessive, at about 10 per cent.

The transfer is a part of an try by the federal government to tighten public spending to reassure monetary markets after sterling and gilt costs fell within the aftermath of its “mini” Funds final month, which featured £45bn of unfunded tax cuts.

However Truss, who has already been pressured into one U-turn this week — dropping her controversial scrapping of the highest 45p price of earnings tax — is now beneath strain from some MPs to vary course on her advantages plan.

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Penny Mordaunt, chief of the Home of Commons, grew to become the primary cupboard minister to talk out towards the coverage in an interview on Tuesday morning. Mordaunt mentioned it “is smart” to extend advantages consistent with inflation.

“I’ve at all times supported — whether or not it’s pensions, whether or not it’s our welfare system — retaining tempo with inflation. It is smart to take action. That’s what I voted for earlier than,” Mordaunt informed Occasions Radio.

“We wish to make it possible for persons are taken care of and that individuals pays their payments. We’re not about attempting to assist folks with one hand and take away with one other.”

Requested about the advantages problem, Truss mentioned in a pre-recorded interview on Radio 4 on Tuesday morning that the federal government must make choices to convey down debt as a proportion of GDP. “I’m very dedicated to supporting probably the most susceptible,” she mentioned, mentioning that the federal government was giving £1,200 funds to tens of millions of low-income households to assist with rising gas payments.

“However we now have to have a look at these points within the spherical, we now have to be fiscally accountable, and I’m completely dedicated to doing that,” she mentioned.

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Downing Avenue believes it might not be truthful to provide folks on advantages will increase of 10 per cent when wages in the private and non-private sector are rising far more slowly.

Nevertheless, Truss has dedicated to retaining the pension “triple lock” beneath which pensioners will see funds rise by whichever is highest out of inflation, common earnings progress or 2.5 per cent. “When persons are on a set earnings like pensions, it’s fairly laborious to regulate. I feel there’s a unique scenario for people who find themselves within the place to work,” she informed LBC.

Damian Inexperienced, former deputy prime minister, mentioned that he and different MPs wouldn’t vote for the advantages coverage within the Home of Commons.

“No, I wouldn’t approve of it. And no, I don’t assume it might get by parliament,” he informed LBC.

“And I feel what we’ve learnt over the previous 24 hours is that the federal government has gone into listening mode and realises which you could’t simply push by the whole lot you may want. And I hope that that lesson is properly realized for the longer term.”

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There are 5.7mn folks receiving common credit score, the principle profit cost, in England, Scotland and Wales. The Institute for Fiscal Research, a think-tank, has estimated it might value £7bn subsequent yr to hyperlink UC to inflation slightly than earnings

Mel Stride, chair of the Treasury choose committee, informed the BBC he didn’t know if he might vote for the true phrases advantages cuts. “I’d have to see all the main points, I’d have to see it within the spherical, however I’d need to assume lengthy and laborious about that,” he mentioned.

The final uprating to advantages was solely 3.1 per cent in April as a result of inflation had been low the earlier September, Stride identified.

“So we’re coming off the again really of a type of fairly a robust real-terms squeeze on these advantages already so I feel that can be a very powerful name to make,” he mentioned.

Truss mentioned she had been proper to reverse the scrapping of the 45p tax price as a result of it was “changing into a distraction” on condition that it was solely a small a part of a bundle that additionally included tens of billions of kilos of expenditure on serving to folks with vitality payments.

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UK markets have steadied following the federal government’s U-turn on Monday. The pound rose 0.6 per cent on Tuesday to its highest level in a fortnight towards the greenback, touching $1.14. The yield on 10-year authorities debt, which rises when costs fall, fell by 0.09 proportion factors to three.86 per cent, as merchants look forward to extra particulars on how the federal government will fund its fiscal plans.

Further reporting by Delphine Strauss and Ian Johnston

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Microsoft hires DeepMind co-founder Mustafa Suleyman to run new consumer AI unit

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Microsoft hires DeepMind co-founder Mustafa Suleyman to run new consumer AI unit

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Microsoft has hired Mustafa Suleyman, the co-founder of Google’s DeepMind and chief executive of artificial intelligence start-up Inflection, to run a new consumer AI unit.

Suleyman, a British entrepreneur who co-founded DeepMind in London in 2010, will report to Microsoft chief executive Satya Nadella, the company announced on Tuesday. He will launch a division of Microsoft that brings consumer-facing products including Microsoft’s Copilot, Bing, Edge and GenAI under one team called Microsoft AI.

It is the latest move by Microsoft to capitalise on the boom in generative AI. It has invested $13bn in OpenAI, the maker of ChatGPT, and rapidly integrated its technology into Microsoft products.

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Microsoft’s investment in OpenAI has given it an early lead in Silicon Valley’s race to deploy AI, leaving its biggest rival, Google, struggling to catch up. It also has invested in other AI start-ups, including French developer Mistral.

It has been rolling out an AI assistant in its products such as Windows, Office software and cyber security tools. Suleyman’s unit will work on projects including integrating an AI version of Copilot into its Windows operating system and enhancing the use of generative AI in its Bing search engine.

Nadella said in a statement on Tuesday: “I’ve known Mustafa for several years and have greatly admired him as a founder of both DeepMind and Inflection, and as a visionary, product maker and builder of pioneering teams that go after bold missions.”

DeepMind was acquired by Google in 2014 for $500mn, one of the first large bets by a big tech company on a start-up AI lab. The company faced controversy a few years later over some of its projects, including its work for the UK healthcare sector, which was found by a government watchdog to have been granted inappropriate access to patient records.

Suleyman, who was the main public face for the company, was placed on leave in 2019. DeepMind workers had complained that he had an overly aggressive management style. Addressing staff complaints at the time, Suleyman said: “I really screwed up. I was very demanding and pretty relentless.”

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He moved to Google months later, where he led AI product management. In 2022 he joined Silicon Valley venture capital firm Greylock and launched Inflection later that year.

Microsoft will also hire most of Inflection’s staff, including Karén Simonyan, co-founder and chief scientist of Inflection, who will be chief scientist of the AI group. Microsoft did not clarify the number of employees moving over but said it included AI engineers, researchers and large language model builders who have designed and co-authored “many of the most important contributions in advancing AI over the last five years”.

Inflection, a rival to OpenAI, will switch its focus from its consumer chatbot, Pi, and instead move to sell enterprise AI software to businesses, according to a statement on its website. Sean White, who has held various technology roles, has joined as its new chief executive.

Inflection’s third co-founder, Reid Hoffman, the founder and executive chair of LinkedIn, will remain on Inflection’s board. Inflection had raised $1.3bn in June, valuing the group at about $4bn, in one of the largest fundraisings by an AI start-up amid an explosion of interest in the sector.

The new unit marks a big organisational shift at Microsoft. Mikhail Parakhin, its president of web services, will move along with his entire team to report to Suleyman.

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“We have a real shot to build technology that was once thought impossible and that lives up to our mission to ensure the benefits of AI reach every person and organisation on the planet, safely and responsibly,” Nadella said.

Competition regulators in the US and Europe have been scrutinising the relationship between Microsoft and OpenAI amid a broader inquiry into AI investments.

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Threats, debt and Trump's advances: 'Stormy' doc examines the life of Stormy Daniels

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Threats, debt and Trump's advances: 'Stormy' doc examines the life of Stormy Daniels

Stormy Daniels from the Peacock documentary Stormy.

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Stormy Daniels from the Peacock documentary Stormy.

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The new documentary Stormy begins in 2023 — around the time former President Donald Trump was indicted over hush-money payments made during his 2016 presidential campaign.

Stormy Daniels, who was paid by Trump’s lawyer Michael Cohen to keep quiet about their alleged previous affair, watches the news unfold on TV and then says, “Let’s go,” before she walks off screen.

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Stormy chronicles Daniels’ life from her childhood in Baton Rouge, La., to her rise as an adult film actor and then, in the opinion of some, a feminist hero. It also gives viewers a glimpse into how she went from friend to foe of a celebrity businessman who became president of the United States.

“I am here today to tell my story and even if I just change a few people’s minds, it’s fine. If not, at least my daughter can look back on this and know the truth,” she said in the film.

Trump’s criminal trial over the hush-money payments has been delayed until mid-April. He faces 34 felony counts, alleging he falsified New York business records to conceal damaging information before the 2016 presidential election. Trump denies the allegations that he had an affair with Daniels and has pleaded not guilty to all counts.

On Monday, a judge rejected Trump’s bid to block Cohen and Daniels — whose legal name is Stephanie Clifford — from testifying. The trial date will be set at a hearing on March 25.

The film, released Monday on Peacock, mainly captures Daniels’ life between 2018 and 2023. Here are the main takeaways from the documentary:

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1. Daniels explains why she didn’t say no to Trump’s advances back in 2006

Daniels alleged that she was abused by a neighbor in Louisiana when she was 9 years old. She did not go into further detail except to say that the man, whom she did not name, had abused other young girls and has since died.

Later in the film, as Daniels explained why she did not refuse Trump’s advances when the two met in 2006, she said, “I didn’t say no because I just, I was 9 years old again.” At the time, Daniels was in her 20s and Trump was 60.

Though she described the alleged affair as consensual, Daniels said she did not want to have sex with Trump.

“To this day, I blame myself and I have not forgiven myself because I didn’t shut his a** down in that moment, so maybe make him pause before he tried it with someone else,” she said. “The hardest part about all of this is I feel like I am partially responsible for every woman that could have come after me.”

2. Threats against Daniels have become more disturbing

Throughout the film, Daniels is forced to navigate insults and threats hurled at her and her family.

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But she described herself as having thick skin. In one scene from 2018, Daniels joked that she was disappointed she could not find any hate comments on Twitter after she had received a key to West Hollywood from the city’s mayor.

Fast forward to this past year, after Trump’s indictment, Daniels said the hate comments had become more intense and disturbing.

“Back in 2018, there was stuff like ‘liar, s***, gold digger,’ ” she said. “This time around, it is very different. It is direct threats. It is ‘I’m going to come to your house and slit your throat.’ “

Daniels added that she did not feel protected by the justice system, and accused it of ignoring her concerns about her safety.

3. Daniels says her ‘soul is so tired’ but she is willing to testify against Trump

Amid the six-year conflict with Trump, Daniels’ marriage ended, her relationship with her daughter became strained, and she felt her safety was constantly jeopardized.

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But with Trump about to go on trial, Daniels said she’s willing to testify in court against the former president.

“I’m more prepared with my legal knowledge but I’m also tired. Like, my soul is so tired,” she said. “I won’t give up because I’m telling the truth. And I kind of don’t even know if it matters anymore.”

4. Daniels owes Trump over $600,000 in attorney fees

Near the end of the documentary, it’s clear that Daniels also suffered financially as a result of her years-long legal battle against Trump.

In 2018, Daniels sued Trump for defamation. The suit was based on a tweet Trump wrote that year, which suggested Daniels had lied about being threatened in 2011 to not speak out about her alleged previous affair with Trump.

A federal judge later dismissed the suit and ordered Daniels to pay the then-president’s legal fees.

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Daniels appealed but lost. She now owes Trump over $600,000 in attorney fees. The film asserts that Daniels is afraid she may lose her home.

5. Seth Rogen and Jimmy Kimmel speak on Daniels’ behalf

Among the people who appeared in the documentary were actor Seth Rogen and late-night TV host Jimmy Kimmel.

Rogen, who worked with Daniels on the 2007 film Knocked Up, recalled talking with her about Trump. At the time, Daniels said she was communicating with Trump about possibly being on his former reality TV show Celebrity Apprentice.

“She didn’t realize she would one day be at the center of this giant thing as she was messing around with some game show host,” Rogen said. “She’s someone who made an enemy of the most powerful guy on the planet and didn’t, like, cower.”

Kimmel invited Daniels to his show in 2018, when Daniels’ nondisclosure agreement about her previous affair with Trump was still in effect.

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Kimmel described Daniels as having a good sense of humor but also afraid of violating her NDA. He nodded to this during their interview, in which he brought out puppets to reenact her interactions with Trump.

“She told the truth and she paid a price for that,” Kimmel said in the film. “It’s not something that just goes away.”

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Calpers to invest more than $30bn in private markets

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Calpers to invest more than $30bn in private markets

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Calpers, the US’s biggest public pension plan, is to increase its holdings in private markets by more than $30bn and reduce its allocation to stock markets and bonds in an effort to improve returns.

A proposal to increase the $483bn fund’s positions in assets such as private equity and private credit from 33 per cent of the plan to 40 per cent was approved on Monday, according to an announcement by the fund and notes from its board meeting. 

The formal approval comes two years after Calpers admitted that a decision to put its private equity programme on hold for 10 years had cost it up to $18bn in returns.

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However, a review of its investment policy found that, despite the gains it had already missed, private equity was still the asset class with the highest expected long-term total return.

“Strong and ongoing growth in private equity returns is behind this measured and appropriate increase,” said Calpers trustee David Miller, chair of the investment committee. 

“Market conditions are evolving and the investment team needs latitude to deploy capital intelligently to keep the fund on track for sustainable returns.”

According to analysis published by Calpers alongside its board notes, private equity was the top-performing asset class in the decade to June 30 2023, with annualised returns of 11.8 per cent. That compares with 8.9 per cent from public equities and 2.4 per cent from fixed income. The documents did not disclose if the figures took account of fees.

The portfolio shake-up, which was confirmed after a scheduled asset allocation review, will bring the California-based plan into line with other big retirement systems in the US, including Calstrs, which has just over 40 per cent of its portfolio in private markets.

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As part of the move, Calpers will increase its bet on private equity from 13 per cent to 17 per cent of its portfolio, although this could potentially rise as high as 22 per cent.

At the same time, it is pulling back from investing in stock markets, with its allocation to equities set to fall from 42 per cent to 37 per cent of its portfolio. It will also trim its allocation to fixed income from 30 per cent to 28 per cent.

In 2021, Calpers’ board approved an expansion into private assets including private equity, real assets and private debt, from 21 per cent to 33 per cent of the portfolio, and also gave itself the ability to borrow money to invest in assets that would help diversify its holdings.

Last year the Financial Times reported that Calpers was planning a multibillion-dollar move into international venture capital, as the fund moved towards investing in riskier assets to drive returns.

The fund also reported a return of 10.3 per cent last year. It is yet to announce a replacement for chief investment officer Nicole Musicco, who resigned last year after 18 months in the role.

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