– **Investors turn away from British policy chaos: Liberum**
– **Domestic stocks start to look cheap as pound recovers**
A wild first month for Liz Truss’s government has seen at least £300 billion ($340 billion) wiped from the combined value of the nation’s stock and bond markets.
While assets globally have been roiled by central bank efforts to tame surging inflation, confidence in the UK has been shaken. The September selloff on concerns about the Truss government’s tax cuts saw the pound hit a record low against the dollar, intervention by the Bank of England and a humiliating government climbdown amid questions over credibility.
“The feedback we get from investors is that they consider the UK uninvestable as long as there is such government chaos,” Liberum Capital Ltd. strategist Joachim Klement said in written comments.
Recovering some ground since late September, the FTSE 350 Index — which comprises stocks in the export-heavy FTSE 100 and the domestically focused FTSE 250 — is down by about £77 billion since the September 2 close, the last trading day before the ruling Conservative Party chose Truss as its leader, according to data compiled by Bloomberg.
The market value of Bloomberg’s gilt and inflation-linked gilt indexes has lost around £200 billion in that time. That reflects a global bond selloff as well as UK-specific concerns. Last month saw the largest yield spike on 10-year UK government bonds on record. That saw them surpass 4% for the first time since 2010.
Sterling-denominated, investment-grade bonds have lost £26 billion over the same period, dragging down the market value of a Bloomberg index that tracks the securities to the lowest level since January 2014. A gauge of sterling-denominated junk bonds — of which British companies account for around 90% — has seen its market value drop by £1.8 billion.
Truss sought to allay market concerns in a speech to her party’s conference in Birmingham on Wednesday. Nevertheless, the pound extended declines after the speech as the dollar rallied.
Amid confusion over Chancellor of the Exchequer Kwasi Kwarteng’s plans to release forecasts on government finances, the government may be pushed into tweaking policy further if those estimates don’t reassure markets, said Christy Wilson, an associate at Katten Muchin Rosenman UK LLP, a legal firm that advises the financial sector.
The fact that the idiot lost the equivalent of the GDP of Finland in a month is truly impressive. How the country hasn’t collapsed after such a hit is impressive.
Strong and stable or something, I don’t know, I didn’t see what was written on the side of that bus…
Anyone who voted for Truss or Boris at either Conservative election will get whatever misery comes to them
“*Why would Labour do this?”*
I root you get a stable government soon.
January 2020 (first month of Brexit) they hit the US elevator market hard. I thought it was somewhat comical how targeted the ads were, but never posted them on account of the world falling apart.
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– **Investors turn away from British policy chaos: Liberum**
– **Domestic stocks start to look cheap as pound recovers**
A wild first month for Liz Truss’s government has seen at least £300 billion ($340 billion) wiped from the combined value of the nation’s stock and bond markets.
While assets globally have been roiled by central bank efforts to tame surging inflation, confidence in the UK has been shaken. The September selloff on concerns about the Truss government’s tax cuts saw the pound hit a record low against the dollar, intervention by the Bank of England and a humiliating government climbdown amid questions over credibility.
“The feedback we get from investors is that they consider the UK uninvestable as long as there is such government chaos,” Liberum Capital Ltd. strategist Joachim Klement said in written comments.
Recovering some ground since late September, the FTSE 350 Index — which comprises stocks in the export-heavy FTSE 100 and the domestically focused FTSE 250 — is down by about £77 billion since the September 2 close, the last trading day before the ruling Conservative Party chose Truss as its leader, according to data compiled by Bloomberg.
The market value of Bloomberg’s gilt and inflation-linked gilt indexes has lost around £200 billion in that time. That reflects a global bond selloff as well as UK-specific concerns. Last month saw the largest yield spike on 10-year UK government bonds on record. That saw them surpass 4% for the first time since 2010.
Sterling-denominated, investment-grade bonds have lost £26 billion over the same period, dragging down the market value of a Bloomberg index that tracks the securities to the lowest level since January 2014. A gauge of sterling-denominated junk bonds — of which British companies account for around 90% — has seen its market value drop by £1.8 billion.
Truss sought to allay market concerns in a speech to her party’s conference in Birmingham on Wednesday. Nevertheless, the pound extended declines after the speech as the dollar rallied.
Amid confusion over Chancellor of the Exchequer Kwasi Kwarteng’s plans to release forecasts on government finances, the government may be pushed into tweaking policy further if those estimates don’t reassure markets, said Christy Wilson, an associate at Katten Muchin Rosenman UK LLP, a legal firm that advises the financial sector.
The fact that the idiot lost the equivalent of the GDP of Finland in a month is truly impressive. How the country hasn’t collapsed after such a hit is impressive.
Strong and stable or something, I don’t know, I didn’t see what was written on the side of that bus…
Anyone who voted for Truss or Boris at either Conservative election will get whatever misery comes to them
“*Why would Labour do this?”*
I root you get a stable government soon.
January 2020 (first month of Brexit) they hit the US elevator market hard. I thought it was somewhat comical how targeted the ads were, but never posted them on account of the world falling apart.
[Maybe it’s time to dust off some of these bad boys](https://imgur.com/a/cP2LT9x)
Edit: with some foreshadowing into the hellscape the world would become for the next 1.5 years.