Crypto News: The London Rush: Budget judges weigh in

Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

Rachel Reeves' inaugural budget may have ended copious amounts of speculation, but there is still a lot to digest. While you (we hope) had a cuppa after her nearly two hour-long speech, we hit the phones to chat to a bunch of the UK's top CEOs.

Nick Mackenzie, CEO of pub group Greene King, said the reduction in draught duty — while welcome — "is a drop in the ocean compared with the cost impact" of changes to national insurance. He urged Reeves to "help reduce the cost of doing business."

Co-op CEO Shirine Khoury-Haq said similar, noting yesterday's announcements "will have a significant impact on our business in the coming years". Housing CEOs, from Barratt Redrow to Hayfield, are cautious about changes to stamp duty and Andy Palmer, the former CEO of Aston Martin, thought not raising fuel duty was a missed opportunity.

Ultimately it comes down to growth. As Anne Glover, CEO of Amadeus Capital Partners, put it: the private sector is inevitably disappointed about tax rises, but "what really matters now is making it easier for entrepreneurs to set up and grow their companies in the UK."

Take a look at the market reaction yesterday and the picture was murky. While stocks and gilts ended with relatively small moves, intraday volatility was, as Markets Today's David Goodman says below, "wild."

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Shell joined BP by keeping the pace of its share buybacks – that's despite a backdrop of weaker earnings and lower oil prices. Profit fell less than expected due to rising sales volumes of natural gas.

Ocado named Adam Warby as its chair designate, replacing Rick Haythornthwaite who is stepping down to focus on his role at NatWest. Warby comes from a software background, and is a senior advisor for KKR.

Panadol maker Haleon delivered a reassuring set of third-quarter results, with sales in line with expectations. Oral health was a particular highlight of the quarter, driven in part by Sensodyne.

China's economy shows signs of stabilising after bold stimulus push.
Israel to host Biden envoys, consider proposal to end conflict in Lebanon.
Argentina's Milei fires foreign minister after pro-Cuba vote at the UN.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Anyone coming in today who wasn't glued to their screens throughout yesterday budget (I've heard rumours such people exist), might be forgiven for thinking the market took the fiscal statement in its stride.

UK 10-year gilt yields closed just four basis points higher on the day — an outcome you suspect Rachel Reeves would have been pretty happy with going into Wednesday — and even two-year yields rose just six basis points.

But that final result masks some pretty wild intraday swings, that, for a short while at least, stirred some memories of Liz Truss and 2022.

The strange thing was the ferocious moves, which saw yields spike more than 20 basis points in a matter of minutes, didn't kick off until after Reeves had sat down.

Ironically, while Truss was punished for overlooking the OBR a few years ago, it was the watchdog's verdict this time round that sparked the mini-selloff, with traders only really picking up on the borrowing and inflation implications of the budget once they saw it in black and white.

Ultimately, though, the moves this time didn't last. Even so, the bond vigilantes out there have still made their message clear — the UK is very much still on the fiscal tightrope and Reeves has very limited room for error if she wants to keep markets on side.

— David Goodman

Check Bloomberg UK's Markets Today blog for updates all day.

October Nationwide House Price data lands at 7am tomorrow, and is expected to fall slightly.

Later in the morning will be the October forecast for UK manufacturing PMI, which is predicted to stay level.

Happy Halloween, I'm Sarah from Pursuits. Now, I'm more of a treat than a trick person, so here are three of my top pastries in London this spooky season:

Honey butter toast at Arome

A thick slice of fluffy Japanese milk bread with a crust of crunchy honey in an ideal balance of textures and sweetness. This bakery mixes traditional French baking with Asian styles and flavors.

Bacon & maple pastry at Pophams

Enclosed in a gorgeous laminated crust, the streaky bacon and maple bun is the kind of treat to boost spirits after getting up early on a cold morning. The North London chain also serves great seasonal pastries.

Feta & honey swirl at Dusty Knuckle

This is a sticky, flaky masterpiece that perfectly combines sweet and savory notes. The bakery itself is one of London's best, just off of an unassuming street in Dalston.

An array of pastries at Arome.

— Sarah Rappaport

Starbucks' CEO has promised to bring back three age-old traditions to reboot the struggling coffee chain and make it feel less like a fast food experience. Ceramic mugs and condiment bars to self-pour milk and sugar will both return, as well as what third, famous touch featured in many movies?

Photographer: Andrey Rudakov/Bloomberg

[Yesterday's answer: Elon Musk put the chances that AI "goes bad" at 10% to 20%.]

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