FTSE 100 (UK 100)
The current economic and political unrest in the UK has made headlines and had an impact on people all across the world. The recently implemented economic measures of the new prime minister, Liz Truss, have had a particularly long impact on the economy this week. Although the Bank of England has entered the fray with its monetary weapons, which may have calmed investors, the waters are not yet quiet.
Change in Policy Rocks Trading
Liz Truss, the most recent prime minister of the United Kingdom, took office after a contentious leadership contest within the party in power, the Conservatives, over who would succeed Boris Johnson after his departure. Less than a month after moving into 10 Downing Street, fresh economic problems have already surfaced.
Truss presented ideas on Friday that would significantly move the British economy to the right of the political spectrum, including major tax cuts and deregulatory initiatives. Energy price spikes brought on by problems with the supply of commodities as a result of the conflict between Ukraine and the Russian Federation have already left U.K. residents reeling. The Truss administration’s proposed tax cuts may require billions in fresh loans to make up for lost revenue because the government has already committed to extensive action to mitigate the financial impact of high electricity bills on the average Briton.