The rapid selling of gilts, as the government bonds are known, matters because when the price goes down, the yield – what it pays out as interest – goes up.

That means borrowing costs for the government are increased and, as has been a constant theme throughout the year already, the chancellor does not have a lot of head room for any additional expenses.

The sell-off today was the biggest since October 2022 and the mini budget which effectively cost Liz Truss her job as prime minister.

Michelle Lawson, director at Lawson Financial, said: “One things the markets hate is uncertainty. There is more flip-flopping from this government than a beach on a summer’s day. The damage they are doing to the economy, public pockets and consumer confidence is a great concern and the markets are reacting as a result.”

After that PMQs session and Rachel Reeves reaction, traders immediately sold off 10-year government bonds – known as gilts – to send the yield soaring in little more than an hour.

That came after Keir Starmer apparently dodged the question of whether Ms Reeves’ job as chancellor was safe.

A Labour comment later said “The chancellor is going nowhere. She has the prime minister’s full backing.”

That appears to have at least stemmed the tide, with the yield on 10-year bonds dropping back slightly from 4.67 per cent to 4.62 per cent over the past hour.

Chancellor Rachel Reeves appeared to cry in the Commons as Sir Keir Starmer declined to guarantee she would remain in place until the election.

The Prime Minister faced MPs after being forced to scrap key planks of his welfare reforms, leaving an almost £5 billion black hole in Ms Reeves’ spending plans and fuelling speculation she could be forced to hike taxes.

Tory leader Kemi Badenoch said Ms Reeves looked “absolutely miserable” and challenged the Prime Minister to say whether the Chancellor would keep her job until the next election.

Sir Keir dodged the question about whether Ms Reeves would be in place for the remainder of the Parliament, saying Mrs Badenoch “certainly won’t”.

President Trump has been full of soundbites again recently and most are regarding trade tariffs once more.

The approaching end of his 90-day pause in theory means blanket levels of levies will come into play again for those who have not yet agreed trade deals.

But the president wouldn’t confirm whether or not he’d extend that deadline when asked.

US stocks are set to slightly fall today upon opening, no doubt in part due to that investor uncertainty.

Futures show the Nasdaq 100 down 0.2 per cent, the S&P 500 totally flat and the Dow Jones just about up at 0.1 per cent.

Recently, news broke of London Stock Exchange-listed precision equipment firm Spectris recommending a takeover bid by Advent International.

Another private equity firm, KKR, have tabled a £4.7bn offer including debt – a 96 per cent premium price to Spectris’s shares level before the initial bid came in.

Spectris shares are up 4 per cent again today on news of that improved offer, with the firm set to leave the FTSE 250 as a result.

Shares in Spanish bank Santander, which is listed on the London Stock Exchange, rose more than 3 per cent this morning.

That follows last night’s confirmation that they are set to buy TSB and make the third-largest bank in the UK.

While the purchase still has to be agreed by shareholders and regulators, The Independent understands Santander feel it will make them more able to drive innovation with product offerings.

Santander shares are up 69 per cent across 2025 so far.

Italy have given an estimation of a €20bn (£17bn) loss in exports next year, along with 118,000 job losses, if the US sticks to a blanket 10 per cent tariff on EU products.

“Italy does not just export luxury products – with a demand that isn’t very sensitive to prices – but mainly machinery, means of transport, and leather goods,” said Confindustria president Emanuele Orsini to national media.

A 10 per cent tariff would be “unsustainable” for Italy, he said, due to the weakness in the dollar which would contribute to an effective 23.5 per cent price rise in the course of a year.

The Bank of England are canvassing public opinion on the design of future banknotes.

Themes, famous faces and history are given as examples by the BoE during the consultation but Brits don’t have the best track record of taking these things too seriously.

Ben Perks, managing director at Orchard Financial Advisers, predicted we would then end up with Banky McBankface if history repeats.

“I remember fondly when the National Oceanography Centre asked the public to name a £200m boat, and we went for Boaty McBoatface,” he pointed out.

“It’s nice of the Bank of England to ask, but we never take these things seriously and I look forward to seeing Joey Essex’s face on a fiver in no time.”

The pharmaceutical firm however is far bigger by market capitalisation, currently worth just over £161bn – more than BP, National Grid and Lloyds Bank combined.

The Independent understands the company acknowledges the CEO’s concerns as being longstanding, especially regarding new products, while conversations are ongoing with the UK government over support for the wider pharmaceutical industry, particularly when it comes to supporting the commercial environment to become a global superpower in the sector.

Donald Trump’s self-set deadline for trade deals is fast approaching and while the UK has already agreed one, the same cannot be said for many others.

The EU remain in talks having broadly agreed a 10 per cent tariff but seeking exemptions or lowered fees on some industries.

Japan, however, could be set for far higher numbers based on the US president’s latest thoughts.

The Asian nation may have to “pay 30, 35 per cent or whatever the number is that we determine, because we also have a very big trade deficit with Japan,” he said. “We’ve dealt with Japan. I’m not sure we’re going to make a deal. I doubt it.”

Japan’s initial Liberation Day tariff was 24 per cent.