Introduction:

In today’s episode, we explore three critical financial developments shaping the global economic landscape. First, the UK Conservative Party has unveiled an ambitious £47 billion plan to cut public spending over five years, targeting welfare, aid, and civil service reductions. We’ll discuss how this strategy triggers a ‘fiscal credibility race,’ pressures the opposition’s spending stance, and influences UK borrowing costs and the pound. Next, we examine the impact of the recent US government shutdown on hourly contract workers who are left without back pay, creating a ‘shadow labor shock.’ This hidden wave of job losses could distort economic data and potentially mislead the Federal Reserve’s interest rate decisions. Finally, we break down the implications of President Trump’s new tax legislation, the ‘One Big Beautiful Bill Act,’ which overhauls small business deductions, promotes domestic R&D, and may lead to a ‘CapEx cliff.’ We’ll analyze how these changes rewrite business investment rules and what they mean for inflation and US competitiveness.

Content and Timestamp:

00:00:34 Conservatives Propose £47 Billion Public Spending Cuts Amidst Economic Strain

00:05:48 Government Shutdown: "I Could Lose Everything" - Contract Workers Face Financial Ruin

00:12:09 Trump's 'One Big Beautiful Bill' Offers Major Tax Benefits for Small Businesses

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