EU CONSUMER CYCLICALS: VF Corp: stock continues to rally

• Something that is possibly a little more fuzzy than expected is Reeves refusing to rule out tax increases on working people.
• There has been lots of coverage of the specific tax pledges (income tax, NIC, VAT) but refusing to rule out the increases on working people does seem to slightly further increase the prospect of income tax increases at basic rate (rather than just higher rate / threshold-based).

UK Chancellor Reeves touches on well-trodden subjects in her initial comments.

• She highlighted an awareness of potential fiscal moves that could spur inflation and indicated her intention to pave the way for further interest rate cuts by the BoE.
• There was no reiteration of the manifesto pledge to not hike the big 3 taxes or not to increase taxes on working people.
• Q&A has begun.
• Gilt futures traded as high as 93.98, piercing initial resistance at 93.96, before a retrace to 93.65 on the lack of fresh information.
• Next resistance at 94.00. Extension through there would deepen the bullish technical theme and switch focus to projection resistance at 94.24 & 94.60.
• Yields 2-3bp lower, 3-4bp off session lows, Curve flatter.
• October yield lows still intact across the curve.

Reeves: "We were elected on a commitment to put country before party and national interest before political calculation, and whatever challenges come our way, whatever challenges come my way, we will not be swayed from that at the budget this year, I will continue to build the strong foundations to secure Britain's future for a fairer Britain, a more prosperous Britain, a Britain with an economy that works for everyone."

• She was asked about her manifesto commitments in response but did not answer the question and pointed to setting out individual policies in the Budget. She does add though that: "As Chancellor, I have to face the world as it is not the world that I want it to be. And when challenges come our way, the only question is how to respond to them, not whether to respond or not."
• She was asked a follow up on whether she will raise taxes on working people. She answers by talking about challenges.
• As expected, there is no ruling out of any measures in this speech / Q&A.