Big investors welcome more headroom in UK budget, fret over long-term uncertainties
Reeves delivered a highly anticipated budget that raises taxes and doubles her fiscal margin, known as headroom, to meet Britain’s fiscal targets
International News via Reuters:
Big investors on Wednesday broadly welcomed British finance minister Rachel Reeves’ tax-raising budget that gives her more leeway to meet her fiscal targets, but they warned it may not be enough if growth falters because tax hikes are due to kick in later.
Reeves delivered a highly anticipated budget that raises taxes and doubles her fiscal margin, known as headroom, to meet Britain’s fiscal targets, exceeding market expectations, even as welfare spending rises.
Following the budget announcement, Vanguard’s head of international rates told Reuters he added back to a position favouring British government bonds, known as gilts, after trimming it before the budget, saying the measures would allow the Bank of England to continue cutting rates.
“While it’s not a super positive budget … we have added to positions,” said Ales Koutny, head of international rates at Vanguard, which manages roughly $11 trillion in assets.
Allianz Global Investors maintained a bullish stance, though it had reduced that position pre-budget.
But fund managers at Franklin Templeton, Northern Trust Asset Management, BlueBay Asset Management and Fidelity International said they remained cautious on gilts.
While they said the larger fiscal margin is positive, the asset managers cautioned the outcome of the budget is less certain, as Reeves’ plans increase spending in the short term while much of the 26 billion pounds in tax hikes take effect later.
If economic growth falls short, tax revenues could be lower than anticipated and spending higher, eroding Reeves’ headroom again, the investment managers said.
“With so much of this being back-loaded, we’re not going to know the credibility (of the plans) for some time,” said Dan Farrell, head of international fixed income at Northern Trust Asset Management, who prefers Spanish and Italian government bonds to British ones.
David Zahn, head of European fixed income at Franklin Templeton, which manages $1.5 trillion in assets, said he expected Reeves would have to raise taxes again next year — the third year running following 40 billion pounds in increases last year.
“It’s a missed opportunity, and she’s just chosen to kick the can down the road,” Zahn said.
While long-dated gilt yields posted their biggest one-day fall since September on Wednesday, investors said that was driven more by the Britain’s debt management office cancelling some bond sales.
Investors said it remained to be seen how Labour lawmakers, who forced a U-turn on welfare cuts over the summer, would react to the budget.
“There will be lingering risks, both from the political and the fiscal side going forward,” said Peder Beck-Friis, economist at fixed-income manager PIMCO, which favours five-year gilts.
RBC BlueBay Asset Management’s fixed-income Chief Investment Officer Mark Dowding said he would see further yield declines as an opportunity to take a short position.
He recently contributed to a Reform UK affiliated think-tank report calling for spending cuts in case of a gilt crisis.
The budget boosted sterling , which hit its highest level since late October against the dollar, after recent weakness spurred by pre-budget jitters. Vanguard’s Koutny said he had taken a more positive position on the pound ahead of the budget and Wednesday’s news reinforced that view.
But Mike Riddell, a lead portfolio manager at Fidelity International, said he was bearish on the pound longer term, given expectations of weaker economic growth and more interest rate cuts. However, Wednesday’s sterling rally “is perhaps a bit of a green light for the government,” he said.
Reporting by Dhara Ranasinghe, Yoruk Bahceli and Nell Mackenzie; editing by Amanda Coooper and Cynthia Osterman
Pact agreed in Dubai on civil aviation
The Bermuda Airport Authority (BAA) has signed a Memorandum of Understanding with Dubai Air Navigation Services to advance cooperation in civil aviation. The agreement was signed on November 20, 2025, by Mr. Lester Nelson, CEO of the BAA, and Mr. Khalid Aljabir, Senior Vice President of Operations at Dubai Air Navigation Services, on the sidelines of the Dubai Airshow, in the United Arab Emirates.
The Memorandum of Understanding establishes a programme of collaboration focused on knowledge exchange, capacity building, and the sharing of best practices in the civil aviation sector. The areas of cooperation include the recruitment and development of air traffic control officers, specialized air traffic training, engineering support, and airspace design.
Through this partnership, the BAA seeks to strengthen its recruitment of air navigation professionals, enhance its operational expertise, expand exposure to international standards, and create new opportunities for Bermudians who wish to build careers in aviation.
Minister of Tourism and Transport, Culture and Sport, the Hon. Owen Darrell, stated, “This agreement represents a meaningful step forward for Bermuda. Dubai Air Navigation Services is a global leader in air traffic management and advanced civil aviation systems. This partnership will support the development of Bermudian talent, expand access to world-class training, and strengthen our long-term capacity to deliver safe and modern aviation services.”
Mr. Lester Nelson, CEO of the BAA, commented, “Our engagement with Dubai Air Navigation Services opens the door to a level of expertise that few jurisdictions can access. Their organization has achieved remarkable results in air traffic management and workforce development. This partnership positions Bermuda to learn from proven approaches, to refine our technical capabilities, and to empower a new generation of Bermudians with the skills needed for the aviation sector of the future.”
In addition to Mr. Lester Nelson, the Bermudian delegation at the Dubai Airshow included Ms. Muna Al Riyami, Chief Operations Officer of the BAA, Mr. Phillip Daniel Rogers, Director of the BAA’s Bermuda Weather Services, and Ms. Alexia Hefti, the Government’s Special Representative for the Middle East and Africa.
About the Bermuda Airport Authority: The Bermuda Airport Authority delivers a range of essential air navigation services at the L.F. Wade International Airport (LFWIA) including air traffic control, air traffic engineering, aeronautical information and Bermuda’s Weather Service. The Authority owns the LFWIA, on behalf of the Government of Bermuda and the Authority also oversees the performance of Bermuda Skyport Corporation Limited and its 30-year concession to operate, maintain and redevelop the airport.
About Dubai Air Navigation Services: Dubai Air Navigation Services is the provider of air traffic management for four airports in the United Arab Emirates, including Dubai International Airport, the world’s busiest airport for international passengers. DANS supports an aviation sector that contributes nearly 30 percent of Dubai’s gross domestic product and is preparing for significant growth, with aircraft movements across the UAE projected to reach 1.62 million by 2030. The organization manages complex and high-density airspace and delivers services that support safe and efficient operations on the ground and in the air.
Meetings on airlift ahead of major hotel re-opening
The Minister of Tourism & Transport, Culture & Sport, the Hon. Owen Darrell, JP, MP, recently held a series of successful meetings with senior executives from American Airlines and British Airways to discuss Bermuda’s air service performance, scheduling, and future capacity needs. These discussions were particularly important in anticipation of the reopening of the Fairmont Southampton.
Minister Darrell was joined by members of the Bermuda Air Service Development Team, including Lester Nelson, CEO of the Bermuda Airport Authority; Erin Wright, Acting CEO of the Bermuda Tourism Authority (BTA); William “Billy” Griffith, Acting Chairman of the BTA; and Aaron Adderly, President of Skyport. The team met with American Airlines at the airline’s headquarters in Dallas, Texas, and with British Airways executives in London, United Kingdom.
Minister Darrell also emphasised Bermuda’s strong commitment to its partnerships with both carriers.
The Minister said, “We reinforced our long-standing and valued relationships with both airlines. The meetings were highly productive, and both airlines expressed a strong commitment to continued collaboration.”
Minister Darrell and the Bermuda Air Service Development Team look forward to reconvening with airline partners next year to continue discussions, representing Bermuda’s dedication to ongoing air service development and stakeholder engagement.
Paget Primary to re-open tomorrow
The Ministry of Education is advising the public that Paget Primary School (classes P1–P6) was closed earlier today due to water-related issues.
The principal issued a notice to parents and guardians requesting that students be collected early and apologised for the inconvenience caused.
The matter has since been resolved following close collaboration with technical teams, and the school will reopen tomorrow, Thursday, November 27.
The Ministry thanks parents, guardians, staff, and the wider community for their understanding and cooperation as we continue to prioritise the health and safety of our students.
Opinion: Home ownership requires self-discipline
Statement by Christopher Famous, PLP MP for Constituency No.11, Devonshire East:
“My landlord has given me notice..”
“I can’t find any affordable units…”
Two sentences that are heard fairly often. Definitely too often for some. The reasons may include the following:
- Lack of rental payments
- Sale of property
- Foreclosure of property
- Unresolvable issues
- Need for relatives to move in
- Need for renovations
It is unfair to paint a picture that all landlords are just randomly giving notice or not renewing leases.
We are in a time that many landlords find themselves facing fluctuating mortgage rates and or ever increasing maintenance costs. Even if the property is paid for there are constant items in a house that need attention whether it be plumbing, electrical or structural. The property owners have to find the funds to pay the bank and or service providers.
Realistic costs
“In a recent Pew Research Center survey, 69% of Americans said they were “very concerned” about the cost of housing, up from 61% in April 2023.”
Pewresearch.org
As seen above, the cost of housing is going up in all developed countries.
The unfortunate reality is that despite the Bermuda Government dropping custom duties for construction material from 25% down to 10%, the cost of homeownership still rises. Here are some of the following reasons:
- Mortgage rates fluctuating
- Homeowner insurance rising
- The cost of all skilled labour has risen. eg plumbers are near $100 per hour
- Overseas cost of materials has risen before it even reaches Bermuda
As prime examples:
- the cost of construction in now at $800-$1000 per square foot
- Appliance repairs start at $100 per hour
- Water heater replacement are roughly $1000
- Land tax bills
Property Owner vs Tenant
For those wishing to become property owners vs. renters, the fact is much sacrifice and savings will be needed.
Live with relatives as long as possible to save on paying high rent and pool your resources with those you trust. Ideally, you would need to try and get a mortgage before the age of 40 as banks generally are giving 25 year loan repayments. Put as much as you can aside toward a downpayment and in doing so you are able to show the banks that your saving habits match their criteria.
This will mean sacrificing some of the following:
- Frequent trips
- New cars
- Online shopping
- Buying lunch daily
- Eating out weekly
Don’t take my word for it. Each of us can go through our monthly bank statements and see where we could have cut out some spending. Equally as important, for property owners who are able, it is best to learn some basic maintenance skills such as landscaping minor plumbing, carpentry and painting.
In closing, it is painful to hear the challenges of finding a place to rent. The government, via the Bermuda Housing Corporation (BHC) and the Bermuda Land Management Corporation (BLMC) is doing its part in renovating units and breaking ground on new projects for affordable rentals. The reality is that home ownership requires a lifestyle and lifetime of fiscal and mental discipline.
Princess to serve Thanksgiving dinner at Salvation Army
HAMILTON, Bermuda, November 26th, 2025 – Recently, the team from Hamilton Princess & Beach Club visited the Salvation Army’s North Street Citadel in Hamilton, for their annual Thanksgiving dinner service.
Hotel executives distributed 200 traditional Thanksgiving meals consisting of roasted turkey with gravy, stuffing, glazed Christmas ham, macaroni and cheese, cassava pie, pumpkin rice, green beans, and a vegetarian offering of a chickpea and vegetable curry served with jasmine rice. The dinners all included ginger and sugar cookies, made by the hotel’s pastry chefs.
Tim Morrison, General Manager, Hamilton Princess & Beach Club, said: “This is the sixth year that Hamilton Princess has supported Salvation Army’s ‘Booth’s Bistro Community Meal’ by serving Thanksgiving dinner.
This service is a meaningful opportunity for us to connect with our community and share in the spirit of gratitude.”
Corps Officer, Captain Cathy Esdaille, of The Salvation Army, said: “These partnerships are a true blessing for The Salvation Army. With so many Bermudians struggling under economic pressure and rising daily expenses, we may never realize just how much difference one meal can make in someone’s life.”
Tim Morrison continued: “The annual Salvation Army dinner is one of the hotel’s first events to kick off our festive season of giving, and this year, we are broadening our festive outreach efforts. On Tuesday, December 16th, we will host our inaugural Christmas Wish Breakfast Gift Drive, taking place from 7am to 10am.
Members of the community are invited to donate unwrapped gifts for children and families across Bermuda, with donations distributed through local charity partners including The Gina Spence Program, The Family Centre, and Big Brothers Big Sisters of Bermuda. Each person who donates will be welcomed to enjoy a complimentary buffet breakfast with us, and prepared by the hotel’s culinary elves. We look forward to welcoming everyone for a joyous and meaningful morning, and we extend a heartfelt thanks to all who can participate and help make the festive season a bit brighter for those who wish it.”
Death toll rises to 36 in Hong Kong residential block fire
At least 279 people were still unaccounted for, with several dozen hospitalised
International News via Reuters:
The death toll from a massive fire that ripped through multiple high-rise residential blocks in Hong Kong’s northern Tai Po district has risen to 36, the city’s leader John Lee said early on Thursday.
At least 279 people were still unaccounted for, he added, with several dozen hospitalised.
Reporting by James Pomfret; editing by Mark Heinerich
US Medicare price cuts manageable for most drugmakers, analysts say
Shares of Danish drugmaker Novo Nordisk and Teva Pharmaceuticals rose 5% and 3% respectively after the U.S. government published negotiated prices late on Tuesday
International News via Reuters:
U.S. Medicare price cuts of up to 85% will have a lesser impact on drugmakers than initially feared, with most of the hit already reflected in forecasts, Wall Street analysts said.
Shares of Danish drugmaker Novo Nordisk and Teva Pharmaceuticals rose 5% and 3% respectively after the U.S. government published negotiated prices late on Tuesday.
Novo’s top-selling drug semaglutide, sold as Ozempic for diabetes and Wegovy for weight loss, as well as Teva’s Austedo for Hungtington disease were among the closely watched drugs on the list of prices, which will take effect in 2027.
The announcement and recent White House deals offer clarity on pricing for popular GLP-1 drugs such as Wegovy and Eli Lilly’s Zepbound, which have drawn scrutiny over their costs.
The negotiated price for Novo’s semaglutide is “the final cloud to clear on the drawn-out, but positively resolved GLP-1 pricing debate,” said Bernstein analyst Christian Moore.
The price cuts through the U.S. Medicare health plan come as President Donald Trump’s administration pushes the drug industry to advocate for other wealthy nations, particularly in Europe, to pay more for prescription medicines.
Goldman Sachs said a key question for the first half of 2026 will be whether lower Medicare prices boost Wegovy volumes.
William Blair analysts noted the $274 monthly price for Novo’s semaglutide broadly aligns with recent government deals, but said uncertainty remains over insurance coverage expansion.
FACTORED INTO NOVO, ASTRAZENECA AND GSK FORECASTS
Bernstein analysts said that five of the 15 targeted medicines will become generic by 2027, limiting their exposure to price cuts. The lower prices could even keep patients on the branded therapies longer, boosting volumes, they said.
Analysts agreed that the reductions had been factored into estimates for Novo, AstraZeneca and GSK.
Earlier this month, Novo said it expected a low single-digit impact to global sales if the price cuts were implemented this year. Analysts said that would imply roughly a 6 billion Danish crown ($931 million) sales hit.
AstraZeneca and GSK shares were flat on Wednesday.
GSK said when reporting third-quarter results that any impact from negotiated prices was fully factored into its outlook.
Shore Capital analyst Sean Conroy said the cuts would hit earnings by “low- to mid-hundreds” of millions of pounds or dollars.
Bernstein estimated the impact on Abbie in the range of $100 million to $250 million to sales of its mood disorder drug Vraylar and irritable bowel syndrome medicine Linzess as well as for Amgen’s psoriasis drug Otezla.
($1 = 6.4404 Danish crowns)
Reporting by Bhanvi Satija and Maggie Fick in London, Stine Jacobsen in Copenhagen, Mariam Sunny and Mrinalika Roy in Bengaluru; Editing by Jane Merriman, Jan Harvey and Alexander Smith
Key measures in the budget proposed by UK finance minister Reeves
Reeves’ speech came after the Office for Budget Responsibility unexpectedly published its outlook on its website ahead of Reeves delivering her budget
International News via Reuters:
British finance minister Rachel Reeves delivered her budget statement to parliament on Wednesday, taking more tax from workers, people saving for a pension and investors to give herself more room to meet her borrowing targets.
Reeves’ speech came after the Office for Budget Responsibility unexpectedly published its outlook on its website ahead of Reeves delivering her budget. It later apologised for what it described as a technical error.
Below are the key measures she announced:
INCOME TAX THRESHOLD FREEZE
Britain will freeze the thresholds for paying income tax for three further years from 2028, Reeves said, with the move expected to raise 7.6 billion pounds ($10.1 billion) in 2029/30.
NEW TAX ON EXPENSIVE HOMES
Reeves will introduce a new high-value council tax surcharge in England starting in 2028, with an annual charge of 2,500 pounds for properties valued over 2 million pounds, increasing to 7,500 pounds for properties worth more than 5 million pounds.
This will be collected alongside council tax and is expected to raise over 400 million pounds by 2031 and will be charged on fewer than the top 1% of properties.
FREEZE ON FUEL DUTY RATES
Britain will maintain a freeze on the level of fuel duty rates. Reeves said the temporary 5 pence cut to fuel duty introduced during the COVID-19 pandemic, which will come to an end in April next year, will be extended until September 2026. Successive governments have kept fuel duty frozen since 2011, fearful of protests by drivers. The duty is a big revenue-raiser, bringing in around 25 billion pounds a year.
TWO-CHILD WELFARE CAP
The two-child limit on welfare payments will be removed from April, Reeves said. The two-child welfare cap, introduced by the Conservative government in 2017, means many low-income families do not receive further benefits when they have a third child or subsequent children.
The OBR said scrapping the cap would cost 3.1 billion pounds in 2029-30.
NEW ELECTRIC CARS CHARGE
A new mileage-based charge for electric and plug-in hybrid vehicles would take effect in April 2028, a measure expected to raise 1.4 billion pounds. The OBR said the new levy was intended to offset roughly a quarter of the 0.6% of GDP in revenue expected to be lost from fuel duty by 2050 due to the shift to electric vehicles. It would be set at about half the fuel duty rate currently paid by petrol car drivers.
Reeves said the mileage tax for electric vehicles would be 3 pence per mile, while plug-in hybrid cars will incur a charge of 1.5 pence per mile.
DIVIDEND TAX RATES
The government will increase tax rates on dividends by 2 percentage points, Reeves said. The rate of dividend tax from April next year will increase to 10.75% for the basic rate of tax and to 35.75% for the higher rates of tax, the OBR said.
CHANGES TO COMMERCIAL PROPERTY TAXES
Reeves said changes to commercial property taxes, or business rates, will increase rates for high-value properties, while permanently lowering tax rates for over 750,000 retail, hospitality, and leisure properties. The reductions would be funded by higher rates on properties valued at 500,000 pounds or more, including warehouses used by online giants.
GAMBLING, ALCOHOL
There will be increased duties on gambling in a move which will raise an estimated 1.1 billion pounds for the government by 2029-30. Reeves said she would also raise alcohol duties in line with inflation.
‘MOTABILITY’ SCHEME
The so-called ‘motability’ scheme, which allows people with disabilities to lease cars using state funding, is set to be reformed in order to curb what Reeves described as “generous” taxpayer subsidies.
PENSION PERK SLASHED
The government will cap the amount of money that can be shifted into pensions before National Insurance is charged to employers and staff at 2,000 pounds a year from 2029, a move expected to raise an extra 4.7 billion pounds in 2029/30.
TAX-FREE SAVING ALLOWANCE CUT
The annual, tax-free limit for cash investments in an Individual Savings Account will be reduced from 20,000 pounds to 12,000 pounds for most savers from April 2027, though over-65s will keep the full allowance.
ENERGY BILLS REDUCTION
Britain will remove 150 pounds a year on average from energy bills by moving costs to general taxation and cutting a scheme to help pay for home improvements from April next year.
($1 = 0.7557 pounds)
Reporting by Catarina Demony; additional reporting by Sam TabahritiEditing by William James, Sarah Young and Ed Osmond
Venture Global accuses Shell of campaign to harm LNG business
Venture Global has faced arbitration claims from Shell, BP and other European buyers alleging contract breaches after the company sold LNG on the spot market during the 2022 energy crisis
International News via Reuters:
U.S. LNG producer Venture Global accused Shell of waging a “three-year campaign” to damage its business after Shell appealed an arbitration loss, according to a staff note confirmed by Reuters on Wednesday.
Venture Global has faced arbitration claims from Shell, BP and other European buyers alleging contract breaches after the company sold LNG on the spot market during the 2022 energy crisis.
The email from Venture Global’s co-founders, Michael Sabel and Robert Pender, criticized as “misguided” a decision by Shell to challenge the unanimous ruling and added that Venture Global would continue to defend itself.
Venture Global and Shell did not immediately respond to a Reuters request for comment.
The decision should be a concern to Shell’s board of directors and its shareholders, the Venture Global co-founders added in their email.
“To be very clear, this action relies on completely baseless claims and is an unfortunate continuation of their three-year campaign to damage Venture Global,” the company told employees.
First reported by the Financial Times, the note was confirmed to Reuters by a company source who spoke on condition of anonymity.
It also highlighted recent supply deals worth $28 billion with customers in Greece, Japan and Spain, saying the company was on track to become the world’s largest LNG producer.
Shell launched a challenge in New York state court this month to overturn the arbitration ruling.
Separately, Shell was ordered to pay Venture’s legal fees following a recent loss in arbitration LNG supply claims.
Both cases centered on Venture Global’s failure to deliver LNG under long-term contracts while selling cargoes on the spot market as prices surged after Russia’s 2022 invasion of Ukraine.
In August, Venture Global won a case against Shell at the International Chamber of Commerce but lost another against BP in October, which is seeking damages of more than $1 billion.
Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Janane Venkatraman and Clarence Fernandez
Bermuda’s junior golfers dominate club championships and challenges
The past weekend proved a fantastic showcase for Bermuda’s emerging golf talent, with several junior players clinching major titles across the island, underscoring the strength of the island’s youth programmes.
Seventeen-year-old Oliver Betschart captured the biggest headline by winning the Port Royal Club Championship for the second time in his young career. Equally impressive was 16-year-old Arman Newton, who secured the title at the Tucker’s Point Club Championship.
Juniors also dominated the gross divisions at the Thanksgiving Challenge on the Hill:
- Seventeen-year-old Johnny Bart secured the victory in the Blue Division.
- Twelve-year-old Lewis MacFarlane was crowned the champion of the White Division, highlighting talent in the younger age brackets.
Adding to the family’s success, 14-year-old Darina Betschart put in a superb performance at the Port Royal Club Championship, finishing as the runner-up in the Ladies Division against senior competition. The weekend’s results signal a bright future for competitive golf in Bermuda.
