Pound Sinks To Record Low

[FatticusInch]

Seems the global market are passing judgement on the Kami-Kwasi budget.

https://www.bbc.co.uk/news/business-63030208

How long before the backbenchers submit a VONC on the new, record-breaking Prime Minister?

[New Judge]

As I said in an earlier post, "markets" always react violently to anything they did not expect. It's not unexpected and not the end of the world. Changes to the UK's economic model are needed as continuing to do the same thing (expecting different results) was not sustainable.

[FatticusInch]

New Judge
//As I said in an earlier post, "markets" always react violently to anything they did not expect. It's not unexpected and not the end of the world. Changes to the UK's economic model are needed as continuing to do the same thing (expecting different results) was not sustainable.//

So is that in essence the same as saying the last 12 years of Conservatives in charge of the finances has been all wrong but especially so as Truss has been in cabinet for 10 years so has voted for every single measure and if Kwarteng had reservations previously(reported yesterday) as Business secretary then why didn’t he air them at the time?
As I asked, do these ministers just vote according to the whim of the PM despite any concerns they have for the consequences?

However much you dress it up, it seems the world markets can see the massive hole below the waterline of this rudderless ship of a government.

[FatticusInch]

What analysts are saying.

Peter Escho, co-founder of investment firm Wealthi, told the BBC: "All currencies are getting sold off against the US dollar, so there is a large element of US dollar strength."

Trading volumes in Asia have also been low which can make movements in currency trading appear more pronounced.

However Mr Escho said: "But with the pound, it has really been exacerbated by news that the new government will be cutting taxes, which is inflationary.

"Add to that recent energy subsidies and news that the Bank of England might need to have an emergency rate-hike meeting, this all results in a sense of panic."

Jane Foley, a currency strategist at Rabobank, said the sell-off showed investors had doubts about the government's plans.

"They're worried that some of these tax cuts that have been announced aren't going to be fully-funded. That will result in a large amount of debt at a time when the Bank of England is going to be selling some of its holdings of UK government debt."

Stephen Innes, managing partner at SPI Asset Management told the BBC that the Bank of England will be forced to take emergency action.

"To stop the bleeding even temporarily, the Bank of England may well enter 'whatever it takes' territory to bring inflation down. An emergency meeting rate hike could happen as soon as this week to regain credibility in the market. We could even see a hike today."

Yet the Tory fanboys on here have been telling us that all of this is ‘a good thing’?
Laughable.

[tomus42]

Can we bring back Boris? Things were comparatively good when he was sitting in No. 10 sulking and not doing anything.

[Old_Geezer]

Reduced taxation of those who have wrangled most out of society, plus more borrowing. Seems foreign investors aren't keen on investing here. Not the most dazzling of start for the new government. Let's hope it's a temporary dip soon to recover.

[Old_Geezer]

Can't simply write this off as caused by the strengthening US dollar. We're down against other currencies, such as the Euro, too. This is down to government policy.