Billions for no-deal Brexit
Sajid Javid, the Chancellor of the Exchequer, said to the Tory party conference yesterday that he would pump billions of pounds into the UK economy in the event of a no-deal Brexit. He also admitted that he could not say how much a no-deal Brexit would cost the British economy.
The independent Office for Budget Responsibility said that a no-deal Brexit would cost around £30bn in lost revenue for the government, but it could be much higher than this. Mr Javid said that the government was still pursuing a deal.
Saudi Aramco to pay $75bn dividend
As the Saudi Arabia state oil company prepares to trade publicly, it promised to pay investors a massive dividend. The Saudi government, led by Crown Prince Mohammed bin Salman, is hoping that Saudi Aramco will be worth $2trn when it debuts next year. That will be nearly double the value of the next most valuable company, Microsoft.
Saudi Aramco is also overhauling how much money it pays the Saudi state. 15% of the price of a barrel of oil will go to the government when its worth less than $70, rising to 45% below $100, and 80% over $100.
Chinese manufacturing falls
China’s manufacturing sector shrank in September, the fifth month in a row. Though a fall was expected, the contraction was smaller than predicted. The official manufacturing purchasing managers’ index was 49.8. Anything less than 50 indicates a contraction. August’s PMI was 49.5
Manufacturing is falling because of the trade war with America, as well as falling domestic demand. China starts to celebrate 70 years of the People’s Republic today.
President Trump’s lawyer subpoenaed
Rudy Giuliani, President Trump’s personal lawyer, was subpoenaed by the House Intelligence Committee over his role in the conversation President Trump had with his Ukrainian counterpart. Mr Giuliani had been named in the call by President Trump.
Australian authorities have also confirmed that President Trump had asked Scott Morrison, Australia’s prime minister, to help investigate how the Mueller investigation began in 2016. President Trump faces impeachment over the scandal.
Consumers sue Volkswagen
The German carmaker is being brought to court in a class-action lawsuit. Nearly 500,000 consumers are banding together to get reparations out of Volkswagen after it covered up the true emissions figures of its diesel cars. Dieselgate could cost VW as much as €30bn in fines and buybacks.
Last week, the current and one former CEO of VW were indicted over the scandal, along with the current chairman. The allegations say the three men knew about the scandal before it broke and tried to cover it up.