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Stocks rise, dollar dips and gold roars higher; investors eye US government shutdown

Gold roared to another high, powered by the dip in the dollar and by investor concerns about the possible ramifications of a U.S. government shutdown

International News via Reuters:

Global stocks rose on Monday while the dollar eased as investors braced for a possible shutdown of the U.S. government, which could in turn delay publication of the September payrolls report and a raft of other key data.

Gold roared to another high, powered by the dip in the dollar and by investor concerns about the possible ramifications of a U.S. government shutdown.

President Donald Trump will meet with the top Democratic and Republican leaders in Congress later on Monday to discuss extending government funding. Without a deal, a shutdown would begin from Wednesday, which is also when new U.S. tariffs on heavy trucks, patented drugs and other items go into effect.

A protracted closure could leave the Federal Reserve flying blind on the economy when it meets on October 29. 

“If the shutdown lasts beyond the Fed meeting, the Fed will rely on private data for its policy decisions,” analysts at BofA wrote in a note. “On the margin, we think this may lower the likelihood of an October cut, but only marginally.”

The MSCI All-World index was up 0.16%, while in Europe, the STOXX 600 rose 0.3%, heading for a gain of 1.1% in September, marking its third straight month of increases.

Meanwhile, markets imply a 90% chance of a Fed cut in October, with around a 65% probability of another in December.

The BofA analysts estimated a shutdown would subtract only a slight 0.1 percentage point from economic growth for every week it lasted, while noting the impact on financial markets had been minimal in the past. 

They cautioned that should the government use the closure to lay off workers permanently, then it could have a more meaningful impact on payrolls and consumer confidence.

There is also much uncertainty about what might happen at a meeting of U.S. generals and admirals in Quantico, Virginia, on Tuesday, called by Defense Secretary Pete Hegseth, which Trump will reportedly attend.

Q4 USUALLY GOOD FOR STOCKS

Otherwise, analysts expected equities to be supported by buying for the new quarter, which historically tends to be a positive one for stocks. The S&P 500 has gained 74% of the time in fourth quarters. 

S&P 500 futures gained 0.5%, while Nasdaq futures were up 0.6%, having eased modestly last week. 

In bond markets, 10-year Treasuries found support at 4.16%, having been pressured last week by a run of upbeat U.S. economic data that led investors to pare back expectations for how low Fed rates might ultimately go.

A host of central bank speakers are on the diary this week, with at least five from both the Fed and the European Central Bank appearing on Monday alone.

Australia’s central bank meets on Tuesday and is widely expected to hold rates at 3.65%, having already eased three times this year. 

The dollar index slipped back 0.2% to 97.952, having benefited last week from the batch of better economic news.

“Our forecast for the U.S. dollar to weaken further heading into year-end is built on the assumption the Fed will deliver two further 25-basis point cuts by the end of this year as the labour market remains weak,” MUFG strategist Lee Hardman said.

The euro rose 0.1% to $1.1709, but was still in the lower half of its recent $1.1646 to $1.1918 range.

The dollar fell 0.6% to 148.61 yen, after rallying just over 1% last week and away from the September low around 145.50.    

In commodity markets, gold resumed its climb to reach a fresh all-time high at $3,819 an ounce.

Oil prices slipped as crude started to flow through a pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in 2-1/2 years. 

Reuters reported OPEC+ will likely approve another oil production increase of at least 137,000 barrels per day at its meeting next Sunday.

Brent dropped 1.13% to $69.34 a barrel, while U.S. crude eased 1.4% to $64.77 per barrel.

Additional reporting by Wayne Cole in Sydney; Editing by Shri Navaratnam and Jamie Freed

Eight dead and 17 missing as Typhoon Bualoi hits Vietnam

Bualoi had moved along the country’s northern central coastline before making landfall early on Monday, causing waves as high as eight metres, the national weather agency said

International News via Reuters:

Typhoon Bualoi tore through Vietnam’s coast on Monday, killing eight people and leaving 17 others missing as strong winds and rain damaged houses, knocked out power and flooded roads before the storm lost some strength as it headed towards Laos.

Bualoi had moved along the country’s northern central coastline before making landfall early on Monday, causing waves as high as eight metres, the national weather agency said.

Seventeen fishermen were missing after huge waves hit two fishing boats off Quang Tri province, while another fishing boat lost contact during the storm, the government’s disaster management agency said. 

“I stayed awake the whole night fearing the door would be pulled off by strong winds,” said Ho Van Quynh from Nghe An province. His neighbours said they spent the night trying to protect their homes as the power to their apartment building went out.

“I’ve witnessed many storms, and this is one of the strongest,” said 45-year-old Nguyen Tuan Vinh. 

Strong winds killed eight people and injured seven others in Ninh Binh province, the Vietnam News Agency reported.

One person died after being caught in floodwater in Hue city, and another was killed by a falling tree in Thanh Hoa province, the disaster management agency said.

By 11:00 a.m. (0400 GMT), the typhoon was moving over Nghe An province into Laos, with maximum wind speeds weakening to 74 kph (46 mph) from 117 kph when it made landfall, the weather agency said.

Bualoi has so far damaged 245 houses, inundated nearly 1,400 hectares of rice and other crops, and cut off access to several areas, the disaster management agency said in a report. 

No major damage to industrial properties was mentioned in the report, though there are some large factories in or near Bualoi’s path, including those owned by Foxconn, Luxshare, Formosa Plastics and Vinfast. 

Ahead of the typhoon hitting, the government had evacuated more than 28,500 people, while hundreds of flights were cancelled or delayed as four airports in central provinces were closed.

The cyclone has triggered heavy rains across most of Vietnam since Saturday, and authorities have warned of the risk of severe floods and landslides. 

Rainfall in several parts of the country was forecast to hit 500 millimetres from Sunday night through Tuesday, according to the weather agency. 

With a long coastline facing the South China Sea, Vietnam is prone to typhoons that are often formed east of the Philippines,  where at least 10 people died after Bualoi hit there last week.

Reporting by Khanh Vu in Hanoi and Thinh Nguyen in Nghe An; Editing by John Mair and Saad Sayeed

Tata Motors-owned JLR begins phased manufacturing restart post cyberattack

This comes a day after Britain said it will back JLR with a $2 billion loan guarantee to help support its supply chain in the wake of a production shutdown after the attack

International News via Reuters:

Jaguar Land Rover (JLR), owned by India’s Tata Motors, said on Monday that it will resume some of its manufacturing operations in the coming days, as the luxury carmaker begins a phased recovery following a cyberattack earlier this month.

This comes a day after Britain said it will back JLR with a $2 billion loan guarantee to help support its supply chain in the wake of a production shutdown after the attack.

The company has three factories in Britain that manufacture a total of about 1,000 cars per day. It is losing at least 50 million pounds ($68 million) a week after the shutdown of its factories, according to the BBC, with many of its 33,000 staff told to stay at home.

Last week, JLR said it had told suppliers some systems were online, including the ones that control the supply of parts worldwide and the financial system that controlled the wholesale of vehicles. It also said that its capacity to process invoices had increased.

Reporting by Urvi Dugar; Editing by Sonia Cheema

London stocks rally as healthcare leads gains; US government shutdown in focus

The benchmark FTSE 100 was up 0.6% at 09:36 GMT, while the domestically focused FTSE 250 rose 0.6%

International News via Reuters:

London stocks rose on Monday, with healthcare shares leading broad-based gains, while investors focused on a potential U.S. government shutdown that could delay key economic data.

The benchmark FTSE 100 was up 0.6% at 09:36 GMT, while the domestically focused FTSE 250 rose 0.6%.

Healthcare stocks climbed 1%, with pharmaceutical giant GSK’s shares rising 2.3% following an announcement that CEO Emma Walmsley will step down in December and be replaced by company insider Luke Miels.

“It seems that investors believe having a new man at the helm, someone who understands the business inside and out, could deliver fresh impetus to a business which is now on the right foot,” said Danni Hewson, head of financial analysis at AJ Bell.

Meanwhile, heavyweight AstraZeneca rose 1% after revealing plans to directly list on the New York Stock Exchange, though the company emphasized it will maintain its London listing and headquarters.

Precious metal miners advanced 2.2% as gold prices continued to hit new records. The rally in gold has been fueled by increasing expectations of U.S. rate cuts and growing concerns about a potential government shutdown, which has enhanced demand for safe-haven assets.

President Donald Trump is scheduled to meet with congressional Democratic and Republican leadership later in the day to discuss extending government funding.

Without an agreement, a shutdown would commence on Wednesday, potentially disrupting the release of key economic data, including the closely watched September non-farm payrolls report later this week.

On the domestic front, surveys published on Monday indicated that Britain’s labour market is showing additional signs of cooling, while businesses remain pessimistic about their prospects in the coming months, highlighting ongoing economic challenges.

Looking ahead, investors will be closely monitoring second-quarter GDP data, due on Tuesday, to better assess the current state of the UK economy.

Reporting by Ragini Mathur in Bengaluru; Editing by Sonia Cheema

Bermuda under tropical storm watch

Emergency Measures Organisation to meet Monday; residents advised to review plans and stay alert

Image from the Bermuda Weather Service

Government press release:

A Tropical Storm Watch is now in effect for Bermuda, in advance of Hurricane Humberto, according to the Bermuda Weather Service (BWS). 

And the Ministry of National Security advised that the Emergency Measures Organisation (EMO) will convene a meeting tomorrow (September 29), to assess the latest developments surrounding Hurricane Humberto, which is currently a powerful Category 4 hurricane.

Over the weekend, Humberto reached Category 5 status, and the Government and the BWS, continue to monitor Humberto closely, as it poses a threat to the island.

In addition to Humberto, the EMO and the BWS are also tracking Tropical Storm Imelda which formed today and is located south of Bermuda. Imelda is currently bringing severe wind and rain across central Bahamas and may influence local conditions in the coming week. 

According to the latest BWS synopsis, Bermuda can expect conditions to gradually deteriorate late on Monday, with strengthening winds, building southeasterly swells, hazardous seas and rip currents as Humberto passes to our west Tuesday afternoon. 

Today, the Minister of National Security, the Hon. Michael Weeks, JP, MP, urged residents to take preparedness seriously, saying, “The Government and the Emergency Measures Organisation are fully engaged, and guided by the Bermuda Weather Service to ensure residents have the latest and most accurate information. We have had some near misses this season regarding severe storms, so it’s important not to become complacent. Hurricane Humberto is a dangerous storm, and with another system developing to our south, every household in Bermuda should take the necessary steps to be prepared. Review your emergency plans, secure your property, and stay tuned to official updates.”

The Minister notes that further advisories will be issued following the EMO meeting. The public is encouraged to monitor official channels and remain vigilant.

Late drama for Goater’s Aston Villa; Smith’s Rhode Island earn crucial point

Goater’s Villa women hold Arsenal; Smith’s Rhode Island grind out draw

It was a mixture of fortunes for Bermudian coaches and players in professional football, with Shaun Goater’s Aston Villa Women securing a dramatic point in the Women’s Super League, while Khano Smith’s Rhode Island FC held strong in the USL Championship.

Goater’s Villa Hold Arsenal

At the Emirates Stadium, Shaun Goater, the Aston Villa Women’s Assistant Coach, saw his side secure a valuable point in the Women’s Super League, holding title contenders Arsenal to a 2-2 draw.

After going down in the match, Lucy Parker’s late equaliser earned the point for the visitors, meaning Villa have now picked up their second point of the young season. The result means Arsenal have failed to win their last two WSL matches, a major boost for Goater’s team against one of the league’s powerhouses.

Smith’s Rhode Island Grind Out Road Draw

Across the Atlantic, Rhode Island FC, managed by Bermudian Khano Smith, secured a hard-fought 2-2 draw against El Paso Locomotive FC at Southwest University Park. The dramatic four-goal thriller saw Smith’s side take a valuable road point, extending their unbeaten run to three straight results and keeping them positioned above the playoff line in the Eastern Conference standings.

Mixed Fortunes in Women’s Football

Elsewhere, the weekend brought a mix of results for Bermudian players in the women’s leagues:

  • Leilanni Nesbeth was an unused substitute as her Chicago Stars FC teammates fell to a heavy 4-1 defeat against the first-place Kansas City Current in the NWSL.
  • Goalkeeper coach Dashun Cooper’s QPR Women suffered a difficult day, being defeated 6-0 by Watford FC Women.
  • Jasmine Spence and her Newport Pagnell Town Women’s team went down 1-0 to New Bradwell St. Peter FC.
  • However, there was a successful end to the month for Jahni Simmons and her Coventry Sphinx Ladies teammates. Despite a long away trip to Leek Town, they came away with a vital 3-2 win at the Football Community Stadium, capping a positive period for the squad.

Exclusive-OPEC+ plans another oil output hike in November, sources say

OPEC+ has reversed its strategy of output cuts from April and has already raised quotas by more than 2.5 million barrels per day

International News via Reuters:

OPEC+ will likely approve another oil production increase of at least 137,000 barrels per day at its meeting next Sunday, as rising oil prices encourage the group to try to further regain market share, three sources familiar with the talks said.

OPEC+ has reversed its strategy of output cuts from April and has already raised quotas by more than 2.5 million barrels per day, representing about 2.4% of world demand, to boost market share and after coming under pressure from U.S. President Donald Trump to lower oil prices.

Eight OPEC+ countries will hold an online meeting on October 5 to decide on November output. OPEC+ pumps about half of the world’s oil and includes the Organization of the Petroleum Exporting Countries plus Russia and other allies.

OPEC headquarters and authorities in Saudi Arabia did not immediately respond to requests for comment.

WHAT HAVE OIL PRICES BEEN DOING?

Oil prices have fallen from over $80 per barrel at the start of the year but have mostly traded in a narrow range of $60-$70 per barrel since OPEC began production increases in April.

On Friday, prices rose to their highest since August 1, hitting levels above $70 per barrel, supported by Ukrainian drone attacks on Russia’s energy infrastructure which disrupted refining and shipments from one of the world’s biggest oil exporters.

The group’s total output reductions amounted at their peak to 5.85 million bpd, made up of three different elements – voluntary cuts of 2.2 million bpd, plus 1.65 million bpd by eight members, and another 2.0 million bpd by the whole group.

FURTHER INCREASE TO BE DISCUSSED

The eight producers plan to fully unwind one element of those cuts – 2.2 million bpd – by the end of September. For October, they started removing a second layer, of 1.65 million bpd, with an increase of 137,000 bpd.

OPEC+ also gave the United Arab Emirates approval to boost production by 300,000 bpd between April and September.

The November increase to be discussed on October 5 will amount to at least 137,000 bpd, equal to the October hike, the three sources said. A final decision has not been made, the sources said.

OPEC+ hikes have fallen short of the pledged amounts because most members are pumping at capacity, analysts have said.

OPEC+’s third group-wide layer of cuts of 2 million bpd is due to last until the end of 2026.

Reporting by Olesya Astakhova and Ahmad Ghaddar; Additional reporting by Maha El Dahan; Editing by Alex Lawler, Dmitry Zhdannikov and David Holmes

Seychelles presidential vote going to runoff, electoral commission says

Ramkalawan had been looking to block a comeback by the party that previously dominated politics for four decades in Africa’s wealthiest country per capita

International News via Reuters:

The Seychelles presidential election will go to a runoff between opposition leader Patrick Herminie and incumbent President Wavel Ramkalawan after no clear winner emerged in the first round of voting, the electoral commission said on Sunday.

Ramkalawan had been looking to block a comeback by the party that previously dominated politics for four decades in Africa’s wealthiest country per capita.

The western Indian Ocean archipelago is a magnet for investment and security cooperation with China, Gulf nations and India.

Herminie, head of the United Seychelles (US) party, secured 48.8% of the vote, while Ramkalawan, of the Linyon Demokratik Seselwa (LDS), followed closely with 46.4%, the electoral commission said.

Neither candidate surpassed the 50% threshold required for an outright victory in the first round.

The US party also made significant gains in the National Assembly, winning 15 constituency seats and an additional four seats through proportional representation, giving it a clear parliamentary majority. 

LDS won 11 constituency seats and four proportional seats, leaving the ruling party behind its main rival in the legislative chamber.

In the presidential race, the two front-runners will now face off in a decisive second round scheduled to be held from October 9 to 11.

The winner will be handed a five-year mandate.

Nearly 82% of registered voters participated in the first round, which was held from Thursday to Saturday, the electoral commission said.

Reporting by Gabriel Robert-Gironcelle; Writing by Portia Crowe; Editing by Andrew Cawthorne

BELCO activates hurricane plan as Humberto nears 

Utility urges residents to prepare as it monitors storm forecasts; restoration crews ready to respond if outages occur

BELCO press release: 

Bermuda Electric Light Company Limited (BELCO) today advised residents that it is closely monitoring the forecasts associated with both Major Hurricane Humberto and Tropical Depression Nine and any potential impacts to the island.

Major Hurricane Humberto is forecast to pass to Bermuda’s west sometime late on the evening of Tuesday, September 30/ early morning of Wednesday, October 1.

BELCO’s Crisis Management Team (CMT) has met to review all preparation protocols and in the event that the storm does impact the island, BELCO stands ready to respond.

BELCO’s Hurricane Plan has been enacted to coordinate preparations ahead of any potential impacts from Hurricane Humberto. Through this process, critical spares are strategically placed in the western and eastern ends of the island and crew assignments are developed to ensure rapid response.

Should Bermuda be impacted by Humberto and it results in power outages, restoration crews will start work as soon as it is declared safe to do so and will continue to work until every customer has had power restored.

The public can get updates on any storm-related outages on BELCO’s website and social media pages, inclusive of Facebook, X and Instagram.

While the time for arranging a scheduled power outage with BELCO for tree trimming prior to any potential impacts from Humberto has passed, customers are reminded that the most important action residents can take to prepare is to ensure that trees on their property are clear of power lines. Ensuring that vegetation on private property remains 10 feet away from power lines is the sole responsibility of property owners. Property owners can call (295-5111) or email (treetrimming@belco.bm) three weeks in advance to schedule a power shutdown in order to trim safely.

BELCO Managing Director Shelly Leman said: “Bermuda was fortunate to have escaped any impacts from Hurricane Gabrielle but I urge the community to not let their guard down. BELCO is monitoring the progress of Major Hurricane Humberto carefully and taking the appropriate action to be prepared should the storm impact Bermuda. I urge residents to prepare now for potential storm conditions and encourage all residents and businesses in Bermuda to review their own hurricane safety plans as well as tips and advice on the BELCO website and social media channels to keep their family and property safe should we be impacted by Major Hurricane Humberto.”

Opinion: Birds, nature & a new chapter for conservation in Bermuda 

NAB Third Sector Spotlight: Bermuda Audubon Society

Images supplied

Written by Heather Bottelli, President of the Bermuda Audubon Society and Janice Hetzel, past President of the Bermuda Audubon Society 

Bermuda is home to some of the most unique ecosystems in the Atlantic and has provided food and shelter to more than 400 bird species. From the haunting call of the Cahow to the flash of a Bluebird across a garden, these natural treasures shape our sense of place and connect us to the wider world. 

But this beauty is under threat. Wetlands are vanishing, woodlands are shrinking, and development pressures are accelerating. As a small island, we can’t afford to lose the open spaces that protect our biodiversity, store carbon and give us room to breathe. 

Across North America, bird populations have dropped by 29% since 1970, and one-third of U.S. bird species are now at risk. Bermuda lies directly on critical migratory pathways, hosting 44% of these vulnerable species at some point in their journey. The habitats we protect on our island have global significance. 

Since 1954, the Bermuda Audubon Society has worked to conserve Bermuda’s birdlife and natural habitats for the benefit of all. We are a volunteer-driven organisation, and our focus has grown beyond bird conservation to embrace habitat restoration, environmental education and community science. Why? Because the health of our environment is inseparable from the well-being of our people. 

Spending just two hours a week in nature has been shown to improve physical and mental health – benefits comparable to regular exercise. In other words, protecting the environment isn’t just good for wildlife; it’s good for all of us. 

Here’s how we’re making our vision a reality: 

Protecting Wild Spaces 

We care for more than 75 acres of nature reserves, including 24 acres safeguarded with the Bermuda National Trust through the Buy Back Bermuda initiative. These wetlands and woodlands are biodiversity hotspots – home to rare species and natural defenses against flooding and erosion. 

Restoring Bird Populations 

We protect the birds that define Bermuda’s natural heritage. We sell and install Longtail Igloos and Bluebird nest boxes, and the Bermuda Bluebird Society, under our umbrella, monitors nearly 200 nest boxes across 26 sites. Every sighting matters: our citizen scientists record their observations in eBird, a global database that tracks bird populations worldwide. Bermuda has logged 401 species, with around 200 recorded annually. 

Inspiring the Next Generation 

We bring Bermudians closer to nature through birdwatching walks, offshore boat tours, lectures and school visits. Our annual Paget Island Bird Camp celebrates migration season, while trips to Nonsuch Island give participants unforgettable encounters with young Cahows and Longtail chicks. Online, our social channels reach thousands more—because when people connect with nature, they’re more likely to protect it. 

Advocacy 

We speak up when nature is at risk – scrutinising development proposals, defending protected areas, and pushing for better care of our national parks. With Bermuda’s open spaces under constant pressure, advocacy is not optional, it’s essential. 

What’s Next 

We’re entering a new era. To reflect the breadth of our mission, we are working towards changing our name to Birds & Nature Bermuda. This new name captures the full scope of our work and our commitment to inclusivity, education, and environmental stewardship. It also allows us to move beyond the troubling legacy of John James Audubon, whose name is linked to racism and slavery. We remain the same passionate organisation – just with a name that better reflects who we are, what we do and who we serve. We welcome you to join us. 

The transition to Birds & Nature Bermuda will take time. We are working through the legal, financial, and operational requirements before finalising the change. Watch for updates to our website, social media, and signage in the coming months.   

We invite you to follow along, get involved, become a member and help ensure that Bermuda remains a beautiful island where birds, nature, and people will all thrive – today and for generations to come.  For more information, email us at info@audubon.bm or visit our website at www.audubon.bm.   


This op-ed is part of the Third Sector Spotlight Series, a collective media campaign coordinated by the Nonprofit Alliance of Bermuda. This campaign aims to raise awareness of the value, impact and contributions of Bermuda’s nonprofit sector.

Vietnam evacuates thousands, shuts airports as Typhoon Bualoi nears

The typhoon was generating winds of up to 133 km/h (83 mph) as of 1000 GMT and is forecast to make landfall in central Vietnam around 0100 on Monday

International News via Reuters:

Vietnam closed airports and evacuated thousands of people in areas under storm threat on Sunday, as intensifying Typhoon Bualoi barrelled towards the country, days after causing at least 10 deaths and widespread flooding in the Philippines.

The typhoon was generating winds of up to 133 km/h (83 mph) as of 1000 GMT and is forecast to make landfall in central Vietnam around 0100 on Monday, slowing as it nears the coast, state-run Thanh Nien newspaper reported.

“This is a rapidly moving storm – nearly twice the average speed – with strong intensity and a broad area of impact,” the national weather forecast agency said.

“It is capable of triggering multiple natural disasters simultaneously, including powerful winds, heavy rainfall, flooding, flash floods, landslides, and coastal inundation.”

Northern and central provinces may see up to 600 mm of rain through October 1, with rivers rising by 9 meters and risks of flooding and landslides, it said.

Authorities in the central province of Ha Tinh have started to evacuate more than 15,000 people, the government said, adding thousands of troops were standing ready.

Residents in Vinh, capital of Nghe An province where the typhoon is expected to make landfall, were rushing to secure homes, tie down boats, and stack sandbags or water-filled sacks on rooftops.

“We already suffered from losses from recent Typhoon Kajiki this year and haven’t recovered yet,” said Bui Thi Tuyet, a 41-year-old resident. “Over the last 20 years living here, I have not felt this terrified because of storms.”

Vietnam suspended operations at four coastal airports from Sunday, including Da Nang International Airport, and adjusted the departure time of several flights, the Civil Aviation Authority said.

Schools in the typhoon-affected area will be closed on Monday, with closures potentially extended if necessary, according to news site VnExpress.

Heavy rain has already caused flooding in Hue and Quang Tri, the government said.

With a long coastline facing the South China Sea, Vietnam is prone to typhoons that are often deadly. Last year, Typhoon Yagi killed around 300 people and caused $3.3 billion of property damage.

Reporting by Thinh Nguyen and Phuong NguyenEditing by Kim Coghill and Peter Graff

UK’s Starmer urges Labour party to unite for ‘fight of our lives’

The next national election is not due until 2029, but with Reform surging in popularity, Starmer is seeking a positive narrative

International News via Reuters:

British Prime Minister Keir Starmer urged his Labour Party on Sunday to stop “navel gazing” and unite against Reform UK, accusing the rising populist party of planning a “racist policy” of mass deportation if it wins power.

Labour is well behind Reform in opinion polls, and Starmer kicked off its annual conference in the city of Liverpool by exhorting members to focus their anger on that party, led by Brexit campaigner Nigel Farage, not his own leadership.

“We have got the fight of our lives ahead of us, because we’ve got to take on Reform. We’ve got to beat them, and so now is not the time for introspection or navel gazing,” he told BBC News. “We need to be in that fight united.”

UK PM DEFENDS EFFORTS TO TACKLE ILLEGAL IMMIGRATION

The next national election is not due until 2029, but with Reform surging in popularity, Starmer is seeking a positive narrative after difficult weeks when his deputy leader and his ambassador to the U.S. were forced to quit.

The conference gives him a chance to rally Labour and redirect the frustrations of critics who want him replaced, including the mayor of Manchester, Andy Burnham.

But it is a tough battle.

Starmer and his finance minister, Rachel Reeves, are under pressure inside the party to increase spending, and relax self-imposed fiscal rules that aim to balance day-to-day expenditure with tax revenue by 2029. But the government is expected to raise taxes in a budget on November 26 to adhere to the rules.

“The budget is an absolutely critical point of us knowing whether direction is going to change,” said Sharon Graham, head of Unite, one of Britain’s biggest trade unions.

“We should stop dancing around our handbag and do that (change the fiscal rules). If that budget is essentially nothing … I think we’ve got a real problem on our hands, because without the money to make the change, then nothing is going to change.”

STARMER CRITICISED BY LABOUR LEFT AND RIGHT

But while leftist party members criticise Starmer for failing to improve living standards as he promised at last year’s election, centrists fear the markets could punish the government if it raises spending.

Reform UK’s central policy is restricting immigration, one of voters’ main concerns.

Starmer turned his fire on Farage’s party.

“It is one thing to say we’re going to remove illegal migrants, people who have no right to be here. I’m up for that,” he said.

“It is a completely different thing to say we are going to reach in to people who are lawfully here and start removing them … I do think that it’s a racist policy, I do think it is immoral.”

According to the polling firm Ipsos, only 13% of voters are satisfied with Starmer while 79% are dissatisfied – the worst score of any prime minister since it started collecting the data in 1977.

Starmer said he was not simply ignoring criticism and would be judged by three things: improvement in living standards, better public services, and whether people felt safe in their homes.

Reporting by Elizabeth Piper and Andrew MacAskill; Editing by David Holmes and Kevin Liffey