#ForexChief #JeremyHunt #stocks #GoldmanSachs #forexnews #RishiSunak #nyse #worldnews #StopLoss ⠀
🇬🇧 Britain: new prime minister, old problems
⠀
🥊 Rishi Sunak, a former head of a hedge fund, a former Goldman Sachs (NYSE: GS) analyst, and one of the richest politicians in parliament, will face a set of serious problems: a growing economic crisis, Tory party political wars and social conflicts.
⠀
Both the manufacturing and service sectors are experiencing the biggest drop in real wages (adjusted for inflation) in 50 years, leading to widespread strikes by groups ranging from transport and postal workers to lawyers and police officers.
⠀
British voters have long been nervous about the political turmoil in Westminster as the economy heads steadily into recession. But they are not in danger of calm yet: the country is waiting for a serious reduction in spending, as it is necessary to urgently close the "hole" in the budget of £40 billion ($45 billion). With rising interest rates on debt and a deteriorating economic outlook, the new government will have to adjust spending on "politically sensitive" sectors such as health care, education, defence, welfare and pensions.
⠀
Jeremy Hunt will likely retain his post as finance minister, as it was his actions that helped calm the volatile bond markets and stabilize the national currency in the short term. Hunt has already ordered government departments other than health and defence to cut their budgets by 15% and set an April 2023 deadline for energy subsidies. This is the first stage of the austerity regime.
⠀
Sunak promises to announce the first version of the economic action plan on October 31, so that the Bank of England will be able to take this information into account when deciding on the interest rate on November 3. Pound speculators have stepped up, so we recommend that lovers of British assets do not open new positions yet.
⠀
Profits to y’all!