Reeves warns tax raid will crimp growth

Thanks for joining us. The Chancellor has been warned that increasing capital gains tax in the Budget could generate less revenue and harm economic growth.

Economists at the Center for Policy Studies (CPS) said potential tax rises could lead to “an exodus of wealthy investors, entrepreneurs and job creators from the UK”.

5 things to start the day

1) Reeves warns of over £50bn ‘debt fiddle’ | Chancellor promises changes to Budget amid investor fears over borrowing spree

2) Reeves donated an additional £50bn to himself. This is where he can spend it | Changes to debt rules will allow Chancellor to boost investment across various sectors

3) Heat from data centers and factories to heat thousands of homes | Government wants heat networks to cut city center carbon emissions

4) Liverpool scaffolder who founded the protein shake company was earning a salary of £62 million | Ex-worker sells 19 of Applied Nutrition-listed shares on London stock exchange

5) Ambrose Evans-Pritchard: Trump’s nostalgia for 19th century tariffs has worrying consequences for the world | Former president’s trade team is playing with global fire

What happened in one night

Asian stocks were mostly higher except for Japan, where investors await Sunday’s election results.

Japanese Prime Minister Shigeru Ishiba, who took office just weeks ago, called for a snap general election to boost support as the ruling Liberal Democrats grapple with a political financing scandal.

Recent turmoil has increased uncertainty in markets and complicated the Bank of Japan’s efforts to move away from long-term near-zero interest rates.

Core inflation in Japan’s capital was 1.8 percent in October, below the central bank’s 2 percent target for the first time in five months, the government said. This strengthened expectations that the central bank will not change the interest rate at the policy meeting to be held next week.

Tokyo’s Nikkei 225 index lost 1 percent to 37,771.79, while the Japanese yen gained value against the US dollar.

The Hong Kong Hang Seng index increased by 1.1 percent to 20,720.60 points, and the Shanghai Composite index increased by 0.8 percent to 3,307.14 points.

China’s central bank kept its medium-term lending interest rate unchanged at 2 percent. The bank also provided 700 billion yuan (£75.8 billion) in one-year medium-term lending facilities to financial institutions, the bank said.

On the other hand, South Korea’s Kospi index increased by 0.3 percent to 2,590.30 points, and Australia’s S&P/ASX 200 index increased by 0.1 percent to 8,216.50 points. Taiwan’s Taiex index rose 0.3%.

On Wall Street, the Dow Jones Industrial Average decreased by 0.3 percent to 42,374.36 points, the S&P 500 index increased by 0.2 percent to 5,809.86 points and the Nasdaq Composite increased by 0.8 percent to 18,415.49 points.

In the bond market, the yield on 10-year U.S. Treasury notes fell to 4.217% from 4.231% late Wednesday. It rose from 3,623 percent on September 16.

Yields have been rising in recent weeks as both candidates in the U.S. presidential election are willing to spend money that will increase the budget deficit, according to Mark Malek, chief investment officer at SiebertNXT in New York.