Opinion The U K Market Meltdown Could Be Headed Your Way Prime Minister - Britain HEAD TOPICS
Opinion The U K Market Meltdown Could Be Headed Your Way
10/21/2022 5:15:00 PM The standard explanation for Truss s bad few weeks doesn t hold up The real reason is far scarier
Prime Minister Britain
Source The Wall Street Journal
From WSJopinion: If the accepted General Theory of Trussonomics doesn’t hold up, try this: The markets’ beef with Trussonomics was that it might have worked, writes josephsternberg The standard explanation for Truss s bad few weeks doesn t hold up The real reason is far scarier ByJoseph C. SternbergOct. 20, 2022 1:10 pm ETAs fun as it might be for outsiders to gawk at the political chaos engulfing the U.K., Prime Minister Liz Truss’s resignation Thursday is a sideshow. The bigger problem is that recent events in Britain are an alarming vision of a fate that potentially awaits all of us in developed economies. The conventional view of Ms. Truss’s rise and unfortunate fall holds that markets took fright after then-Chancellor Kwasi Kwarteng on Sept. 23 announceda major package of tax cuts and energy subsidies. This triggered a rout in the market for the pound and government bonds, or gilts, as investors worried about the government’s capacity to pay its bills. Improperly hedged pension funds found themselves forced to sell gilts in ever larger quantities. The Bank of England stabilized the market with emergency gilt purchases, buying time for Ms. Truss and new Chancellor Jeremy Hunt to abandon the tax-cut plans that had spooked investors. Once she had done so, order was restored. Her departure will draw a line under this debacle. Read more:
The Wall Street Journal » Debt ceiling hijinks just got riskier European markets head for negative open as economic uncertainty continues Amazon Is Getting Into Home Insurance, Kind Of UK Prime Minister Liz Truss resigns after failed budget and market turmoil Into America
Into America is a show about being Black in America. These stories explore what it means to hold truth to power and this country to its promises. Told by people who have the most at stake. Read more >> Debt ceiling hijinks just got riskierThe defenestration of Liz Truss suggests that the risks of an American debt-ceiling standoff could be higher than when such tactics were last deployed. European markets head for negative open as economic uncertainty continuesEuropean markets are heading for a negative open on Thursday as investors assessed continuing economic uncertainty. Amazon Is Getting Into Home Insurance, Kind OfThe e-tailer is expanding it's U.K. operations into the home insurance market, with a website that lets customers compare and buy policies. UK Prime Minister Liz Truss resigns after failed budget and market turmoilU.K. Prime Minister Liz Truss resigned following a failed tax-cutting budget that rocked financial markets and which led to a revolt within her own Conservative Party. Well, she didn’t last long haha When people truly open their eyes to conservatism, then none of them should! Guess they didn't Truss her Seems minor compared to what Biden has done. ‘A Fantastic Mess’: Here’s How Much U.S. And U.K. Stocks And Bonds Cratered During Liz Truss’ TenureBond yields in the U.K. and U.S. skyrocketed to their highest levels since 2008 as the market lost confidence in governments’ ability to navigate a looming recession and digested sticky inflation data. With Liz Truss's resignation as Prime Minister Britain's Tories show they have failed to learn from their economic failures.suggests that the risks of an American debt-ceiling standoff could be higher than when such tactics were last deployed.12:29 AM EDT European markets: Here are the opening calls European markets are heading for a higher open on Wednesday, looking to build on gains in the previous session.digital wallet . Images: Reuters/EPA/Shutterstock Composite: Mark Kelly By Joseph C. Sternberg Oct.S. 20, 2022 1:10 pm ET As fun as it might be for outsiders to gawk at the political chaos engulfing the U.'s FTSE index is expected to open 38 points higher at 6,958 , the German DAX up 99 points at 12,864 and the French CAC up 39 points at 6,106, according to data from IG.K. This raises the specter of a replay of the debt-ceiling brinkmanship that broke out roughly a decade ago., Prime Minister Liz Truss’s resignation Thursday is a sideshow. To buy a plan, customers will first have to answer a questionnaire about their assets and finances (undoubtedly saving Amazon the effort in mining the data itself). The bigger problem is that recent events in Britain are an alarming vision of a fate that potentially awaits all of us in developed economies. Driving the news: Truss' resignation Thursday came just weeks after her first fiscal plan provoked violent swings in the prices of British bonds and the pound.'s fiscal U-turns and anticipated new EU measures to tackle energy prices. The conventional view of Ms. Truss’s rise and unfortunate fall holds that markets took fright after then-Chancellor Kwasi Kwarteng on Sept. For much of the last two decades, super-low inflation and the calming influence of central bank bond-buying programs kept markets relatively sedate, despite growing budget deficits. 23 announced a major package of tax cuts and energy subsidies .1353 at 4:30 p. This triggered a rout in the market for the pound and government bonds, or gilts, as investors worried about the government’s capacity to pay its bills. Instead of buying bonds to keep rates low, central banks are reducing their holdings to push rates higher. Shop at Best Buy Advertisement But hey, bonus alert: “Amazon customers who make qualifying purchases of a home insurance policy through the Amazon Insurance Store will receive a £10 Amazon. Improperly hedged pension funds found themselves forced to sell gilts in ever larger quantities. The Bank of England stabilized the market with emergency gilt purchases, buying time for Ms. If they're reluctant to do so, it results in higher yields and more violent market moves. Truss apologized for the "mistakes" she made in her first six weeks in the position. Truss and new Chancellor Jeremy Hunt to abandon the tax-cut plans that had spooked investors. Once she had done so, order was restored.S, where the Federal Reserve's quantitative tightening program means that the central bank is and onto the portfolios of investors every month. Her departure will draw a line under this debacle. inflation figures for September are due.K. Continue reading your article with a WSJ membership .S.