The Treasury can't sell gilts during the Olympics because no traders are going to work

The Olympics' reverse Midas touch strikes again.

The Financial Times reports that the Government is suspending its weekly auctions of Treasury gilts for a four-week period between mid-July and mid-August over fears that "too many bond traders will be working from home – or not at all – during the Olympics."

Norma Cohen writes:

A spokesman for the DMO confirmed that the prospect of so few gilts traders being at their desks with trading screens switched on had caused it to take the unusual step of rescheduling auctions.

Such thin staffing raises the prospect of a "sloppy" auction that could force the Exchequer to pay more to borrow. "Why take operational risk when you don’t have to?" the DMO spokesman said.

The two lines which are expected to be unusable during the Games are the Central and Jubilee lines, which serve Stratford station, the main access for the Olympic stadium. They are also the main routes, respectively, to Bank and Canary Wharf stations, the two with the highest concentration of bankers. Worse, many stations used in commutes to those destinations are also expected to be affected. London Bridge station, an interchange between many commuter rail lines and the Jubilee, is expected to be "exceptionally busy" between 7 and 9:30 in the morning and 4 and 10:30 at night. Bond Street, as an interchange between the two key lines, carries warnings that it may take up to an hour to get from street level to the platforms.

Cohen adds:

The absence of new gilts auctions may have a serious knock-on effect, economists said. If, as expected, the Bank of England gives the go-ahead this week for another round of gilts purchases to help boost the economy, it may have to slow these down because of the Olympic effect.

Buying gilts in a market where no new securities are being issued could distort interest rates in unpredictable ways, economists warned.

The Olympics' reverse Midas touch continues.

The Olympic stadium and the Orbit thing. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Donald Trump's healthcare failure could be to his advantage

The appearance of weakness is less electorally damaging than actually removing healthcare from millions of people.

Good morning. Is it all over for Donald Trump? His approval ratings have cratered to below 40%. Now his attempt to dismantle Barack Obama's healthcare reforms have hit serious resistance from within the Republican Party, adding to the failures and retreats of his early days in office.

The problem for the GOP is that their opposition to Obamacare had more to do with the word "Obama" than the word "care". The previous President opted for a right-wing solution to the problem of the uninsured in a doomed attempt to secure bipartisan support for his healthcare reform. The politician with the biggest impact on the structures of the Affordable Care Act is Mitt Romney.

But now that the Republicans control all three branches of government they are left in a situation where they have no alternative to Obamacare that wouldn't either a) shred conservative orthodoxies on healthcare or b) create numerous and angry losers in their constituencies. The difficulties for Trump's proposal is that it does a bit of both.

Now the man who ran on his ability to cut a deal has been forced to make a take it or leave plea to Republicans in the House of Representatives: vote for this plan or say goodbye to any chance of repealing Obamacare.

But that's probably good news for Trump. The appearance of weakness and failure is less electorally damaging than actually succeeding in removing healthcare from millions of people, including people who voted for Trump.

Trump won his first term because his own negatives as a candidate weren't quite enough to drag him down on a night when he underperformed Republican candidates across the country. The historical trends all make it hard for a first-term incumbent to lose. So far, Trump's administration is largely being frustrated by the Republican establishment though he is succeeding in leveraging the Presidency for the benefit of his business empire.

But it may be that in the failure to get anything done he succeeds in once again riding Republican coattails to victory in 2020.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.