Daily Alert – Wednesday 28th September 2022: IMF sends Kwasi to the naughty step

Mark NugentDaily Alert, Sept 2022

Daily Alert – Wednesday 28th September 2022: IMF sends Kwasi to the naughty step

Good morning.

The International Monetary Fund (IMF) waded into the UK’s fiscal clown show by saying the recent unfunded moves by the Treasury were “excessive and in need of revision”. They went on to say that Kwasi’s plan, due in November, should be used to “consider ways to provide support that is more targeted and re-evaluate the tax measures, especially those that benefit high-income earners.” Naughty step.

One of the many consequences of Friday’s mini-budget is that UK 10-year and 2-year bond yields are above 4.4 percent, a doubling of rates seen in July and August. So, servicing the national debt just got twice as expensive.

Meanwhile over at the Nordstream pipeline, someone’s been blowing it up. Swedish seismologists picked up two explosions in the area just before the gas leaks were discovered. I think we get the message. Gazprom warned that the last remaining pipeline to western Europe is at risk. From whom?

I placed no trades last night.

I’ll be back tomorrow.

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