Daily Alert – Thursday 29th September 2022: Bank of England to the rescue!
Here’s a quote from Bloomberg that sums it all up nicely:
“Britain is in a self-inflicted financial crisis that threatens to accelerate the economy’s dive into recession — and the country’s new prime minister is coming under intense pressure to blink. In the week since the government unveiled the biggest tax cuts since 1972 with scant detail of how they will be financed, the pound has crashed to its lowest-ever level against the dollar and the Bank of England has been forced to intervene amid concerns about the nation’s pension funds. What happens next will determine just how deep the looming recession proves.”
We even had the US wading in yesterday telling Truss and Chancellor KK what to do. Truss has not been seen in public since Friday. KK is being asked if he is going to resign.
It’s a global embarrassment.
Let’s continue the quoting from Bloomberg, this time from the brilliant John Authers, who I feel, with his references to lyrics from songs of a certain vintage, must be around my age:
“Adam Ant once sang that “ridicule is nothing to be scared of.” He was wrong. For a politician, all kinds of crises can be survived. Ridicule cannot. Once you’ve looked truly ridiculous on the public stage, you’re done for. That leads to the extraordinary situation where the new government in the UK, installed only three weeks ago, looks so ridiculous after a revolt from international markets that the jobs of its new finance minister, and even the prime minister, have been called into question. Appalling misjudgements led to one of the greatest bond market implosions in history.” – John Authers, Bloomberg
It really is a global embarrassment.
Markets perked up a little yesterday. Equities rose as did oil. I am looking at these as rallys that I may short, having changed by bias on both asset classes to neutral/short. That’s probably for next week. It is unlikely that I will trade today or Friday.
Tomorrow, I will send you a brief video of Trade 40 – last week’s GBPUSD short that made 8.7 percent.
VIP Club members can see today’s video, all brief trading videos, the Monthly and YTD Performance videos, the Trading Video Course and download the MTM Indicators software HERE