EM LATAM CREDIT: Mexico: Industrial Production Beats Expectations - Neutral

Delivering the Spending Review, Chancellor of the Exchequer Rachel Reeves confirms reforms to the 'green book', which indicates how the Treasury calculates the 'value' of gov't investment. Reeves: "I am today publishing the conclusion of the review of the Treasury’s Green book, the government’s manual for assessing value for money. Our new Green Book will support place-based business cases and make sure no region has Treasury guidance wielded against them."

• Reeves: "This spending review provides the largest settlements in real terms since devolution was introduced: With £52bn for Scotland; £20bn for Northern Ireland, by the end of the spending review period; And £23bn for Wales."
• Confirms extension of GBP3 bus fare cap until at least March 2027.
• Reeves on crime and policing: "we are investing £7bn to fund 14,000 new prison places... …and putting up to £700m per year into reform of the probation system. Today, I will do more. I am increasing police spending power by an average 2.3% per year in real terms over the spending review period… "

Much of what Chancellor Reeves has mentioned had already been reported ahead of the spending review, making for little market reaction.

• What’s more, we noted that this wouldn’t be a major fiscal event ahead of time, with more focus on the political implications.
• Gilt curve holds bear steeper on the day, while major GBP FX pairs are little changed since she started speaking. BoE pricing steady, showing ~47bp of cuts through year-end.