“Confidence in the UK has been sideswiped amid a pile-on of worries about the economic outlook and the direction of travel being taken by the Truss administration,” said Susannah Streeter, senior analyst at Hargreaves Lansdown. “Only a U-turn in the slash-and-spend policies is likely to significantly restore optimism, but the administration is digging in its heels.”Article content
The FTSE 350 Index — which comprises stocks in the export-heavy FTSE 100 and the domestically focused FTSE 250 — has now lost more than US$300 billion in market capitalization since Sept. 5, when Truss was confirmed leader of the Conservative Party. In that time, a U.K. government bond index has lost over £160 billion in market value, according to data compiled by Bloomberg.
“What the U.K. government has done is said, ‘to hell with the inflation outlook, let’s just think about growth’,” said Seema Shah, chief strategist at Principal Global Investors. “Bond yields are only going to go higher and undo a lot of that positive economic movement from the tax cuts,” she said in an interview.Article content
Sterling-denominated, investment-grade bonds have also lost US$29 billion over the same time, dragging down the market value of a Bloomberg index that tracks the securities to the lowest level since March 2016. A gauge of sterling-denominated junk bonds — of which British companies account for more than 90 per cent — has seen its market value drop by US$1.4 billion.
Bankers, the public , and above all 70-80% of the Tory MPs are in revolt... The Tories are now in a serious conundrum, do they keep her and hope they can win back the voters or do they admit they messed the bed, and get her out of there..
Good article.
But but but…I thought tax cuts solved all problems.
Yep, and devalued the pound as a result..
So central bankers don't like it lol
$500 B in layoffs is going to sting the Brit economy.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Sumber: globeandmail - 🏆 5. / 92 Baca lebih lajut »