FT News Briefing McCarthy ousted as US House Speaker
Oct 4, 2023
Kevin McCarthy's unexpected ouster as Speaker of the House sends shockwaves through U.S. politics, igniting discussions about the future of Republican leadership. Meanwhile, the bond market feels the heat as yields soar to a 16-year high. Internationally, tensions rise as India demands Canada withdraw its diplomats, creating a diplomatic standoff. Additionally, the struggles of China's Evergrande property group raise questions about its $300 billion debt crisis and the broader implications for investors.
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Historic Removal
- Kevin McCarthy's ousting marks a historic first for the U.S. House of Representatives.
- This unprecedented removal highlights the deep political divisions within the Republican party.
Legislative Impasse
- The House of Representatives is currently without a Speaker, halting all legislative processes.
- This vacancy prevents any further action on critical issues like government funding and aid for Ukraine.
Market Sell-Off
- U.S. stocks and bonds experienced significant sell-offs, with the Nasdaq down nearly 2%.
- The 30-year U.S. Treasury yield hit a 16-year high amid market realization of sustained higher interest rates.