Trump ally should cut budget deficit rather than try to suppress bond yields, says billionaire Stanley Druckenmiller

Scott Bessent’s attempt to calm the bond markets and push down America’s cost of borrowing have attracted a rebuke from the US Treasury secretary’s former mentor.

The billionaire investor Stanley Druckenmiller, who worked with Bessent at George Soros’s fund management firm in the 1990s, has warned that his former pupil is courting danger by trying to suppress US bond yields.

Concern over impact of Iran war pushes up government bond yields in US, UK, France, Germany and Japan

Government borrowing costs in several advanced economies hit their highest level since the 2008 financial crisis, or even earlier, on Monday as investors feared the Middle East crisis would keep inflation persistently high.

Concerns over rising prices and government spending pushed up the cost of debt issued by Paris, Berlin, Washington DC, Tokyo and London as investors fretted that rising prices would push up interest rates.

State department says it has reached administrative settlement with company’s US arm to resolve breaches

The UK defence company BAE Systems is to pay a $36m (£26.7m) civil penalty after breaching US arms exports regulations more than 100 times.

The US Department of State announced on Thursday that it had reached an administrative settlement with the US arm of BAE to resolve 104 violations of the Arms Export Control Act and the International Traffic in Arms Regulations.