registerme
Member of DD Central
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Post by registerme on Sept 23, 2022 12:05:43 GMT
What the....  ? |
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adrianc
Member of DD Central
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Post by adrianc on Sept 23, 2022 12:08:12 GMT
What the.... ? Let's face it, how much sanity and relevance were we actually expecting...?
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Post by Deleted on Sept 23, 2022 12:32:22 GMT
Market reaction was as expected, a big 'nope' out of all UK-related stuff - currency, bonds, stocks.
The bond market move is very concerning. This is a massive expansion of government debt at exactly the time that debt interest is becoming more expensive to service due to rate rises and inflation, and right as the BoE starts unwinding quantitative easing by selling UK debts back onto the markets.
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registerme
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Post by registerme on Sept 23, 2022 12:40:24 GMT
The "mini-budget"The "Work and investment" part is ok. More could have been done here. The energy price cap is an unfortunate necessity. The planned increases in duties on booze being cancelled is, naturally, welcome. The rest of it seems to be, and let's be charitable, "ideologically driven and untested". It's not surprising GBP and the major UK indices have taken a bath. Undermine Sterling at the same time as the US is raising rates? Only one outcome. And it means rates here will need to go even higher than they otherwise would (assuming the government doesn't emasculate the BoE and we go all in on Erdonomics). Bailey aside I trust the BoE more than I trust the Treasury. And I trust the Treasury more than I trust the government.
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Post by bracknellboy on Sept 23, 2022 12:45:48 GMT
I note that the Chancellor has called on the BoE to "get a grip on inflation" This at the same time as enacting fiscal policies that will fuel inflation from multiple different directions including tax cuts and de facto depreciation of the £. How now to press down on inflation spiral inducing wage demands ? The lunatics are genuinely running the asylum. |
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james100
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Post by james100 on Sept 23, 2022 13:21:26 GMT
It's pretty shocking. I'm a beneficiary of a number of these changes and cringing. Dividend tax changes being reversed again too which seems to be omitted from most news summaries. Just put a low 5 figs into a FTSE100 ETF using a USD account but apart from that there's little joy to be had (I rarely drink but that may be about to change).
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adrianc
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Post by adrianc on Sept 23, 2022 13:38:11 GMT
Meanwhile, over on FB, a friend of a friend has said that BJ Piffle ("the greatest statesman for generations") will definitely have had "a lot to do" with the detail of this budget.
And I think he meant it.
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Post by mostlywrong on Sept 23, 2022 13:53:25 GMT
I will buy the FT tomorrow in the hope that it can make some sense of this mini-budget but I agree with those who are puzzled.
It does not make sense to me either.
The only people who are going to do well out of this are foreign investors with deep pockets denominated in USD and a long term view.
I bought some shares this morning below my target price but, Jeez, I am frit...
Come back Funding Circle, all is forgiven...
MW
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Post by Deleted on Sept 23, 2022 13:57:01 GMT
Thick Lizz is trying something different. Do you ever wish you weren't part of a student experiment?
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Post by Deleted on Sept 23, 2022 14:49:32 GMT
Again, since everyone seems to be focusing on currency and equities... www.marketwatch.com/investing/bond/tmbmkgb-10y?countrycode=bxGilt market reaction. Note that UK government debt funding cost has nearly QUADRUPLED in a year across the entire yield curve. And Trussonomics says this is a good time to print more debt. Think about what this means for our future debt interest payments. Compare the projected payments with the amount we spend on other things. Happy spending more on servicing debt interest than defending our realm? Educating our kids!? etc etc... |
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Post by Deleted on Sept 23, 2022 14:59:35 GMT
I note that the Chancellor has called on the BoE to "get a grip on inflation" This at the same time as enacting fiscal policies that will fuel inflation from multiple different directions including tax cuts and de facto depreciation of the £. How now to press down on inflation spiral inducing wage demands ? The lunatics are genuinely running the asylum. There is one step left between us and full Erdoganomics, and that is BoE independence. There is an almightly clash coming between fiscal and monetary policy, and if Truss hamstrings or scapegoats the BoE, the last domino falls. btw, Turkish inflation is currently running at around 80%, and if you really want a fright, have a look at the history of their currency...
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Sept 23, 2022 15:16:41 GMT
so let's get this right
The average UK pensioner benefits how?
But top football players get £5,000 + extra per week
the average working person will be £10 a month better off next year from tax and another £2-3 from reversing the NI increase.
Seriously I'm now an ex Conservative voter
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Post by bracknellboy on Sept 23, 2022 15:27:50 GMT
I note that the Chancellor has called on the BoE to "get a grip on inflation" This at the same time as enacting fiscal policies that will fuel inflation from multiple different directions including tax cuts and de facto depreciation of the £. How now to press down on inflation spiral inducing wage demands ? The lunatics are genuinely running the asylum. There is one step left between us and full Erdoganomics, and that is BoE independence. There is an almightly clash coming between fiscal and monetary policy, and if Truss hamstrings or scapegoats the BoE, the last domino falls. btw, Turkish inflation is currently running at around 80%, and if you really want a fright, have a look at the history of their currency...I don't need to look. I'm old enough to remember what it was like. When tourists would convert from $$ (or £ when it was still sort of a reserve currency) on a daily basis to avoid daily depreciation of the lira. And when they knocked off god knows how many zeros off the end of the currency but it rapidly returned to being a nightmare. I remember being there once, after the revaluation, and still having to work in 10'000s of Lira for even relatively small purchases. And getting ripped off at a bar somewhere because I cocked it up.
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michaelc
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Post by michaelc on Sept 23, 2022 15:28:31 GMT
I have said at least twice in these forums that those relishing Johnson to go would not be happy with his replacement.
Can I put an accumulator bet on PM Starmer, then PM Johnson again ?
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agent69
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Post by agent69 on Sept 23, 2022 15:36:58 GMT
I have said at least twice in these forums that those relishing Johnson to go would not be happy with his replacement. Can I put an accumulator bet on PM Starmer, then PM Johnson again ?Why not add President Trump to the list?
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