Sterling fell against the euro and US dollar over the course of yesterday morning, both before and after Liz Truss’s Conservative Party Conference speech. Sterling recovered a little in the afternoon and evening sessions however.
Liz Truss’s first conference speech as Prime Minister was unapologetic about the financial chaos unleashed by the mini-Budget, focusing on the “anti-growth coalition” as she put it, attempting to stymie their plans. Meanwhile, the cabinet was falling out over the plan for benefits to be raised only by the same amount as average earnings, rather than inflation, which is generally higher.
Negatively for households, the typical two-year mortgage deal is now in excess of 6% for the first time since 2008. There was also a report from the IFS that freezes on personal tax thresholds would lose tax payers more than the cuts at the top.
There was some positivity coming down the wires for the British economy, with better than expected PMI and new car sales.
However, those car drivers may face pain at the pumps again, as a cut in oil production by two million barrels a day is raising prices.
Ex-PM Gordon Brown warned about the “shadow banking” system and how resilient it might be in a world of higher interest rates.
Elon Musk’s ownership of Twitter looks to be back on, with the world’s richest person apparently planning an ‘everything app’, including commerce and payments.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
