Call 800 665 0411 to learn about our services for your stock

Search   Follow Investorideas on Twitter   Investorideas is on Facebook   Investorideas is on Youtube   Investorideas is on Pinterest  Investorideas is on stocktwits   Investorideas is on tumblr   Investorideas is on LinkedIn   Investorideas Instagram   Investorideas Telegram   Investorideas Gettr   Investorideas RSS

Share on StockTwits

Truss and Kwarteng's U-turn will not be enough to calm markets


October 4, 2022 ( Newswire) The UK government's humiliating U-turn on the higher tax rate reforms will not be enough to calm turbulent financial markets, warns the CEO of one of the world's largest financial advisory, asset management and fintech organizations.

The warning from Nigel Green of deVere Group comes as it is reported that the Chancellor, Kwasi Kwarteng, plans to bring forward his medium-term fiscal plan announcement to this month.

The deVere CEO says: "Mr Kwarteng's bringing forward of the plan to this month rather than November 23 underscores just how badly the so-called mini budget was received by financial markets.

"Having the announcement sooner rather than later is the right thing to do, as the longer the markets wait for proof that the government's fiscal agenda is sound, the higher the risk of turbulence.

"However, the bringing forward of the announcement and the scrapping of plans to axe the 45p tax rate stinks of desperation."

He continues: "The forthcoming amendments to the reckless mini budget that we know already are unlikely to calm markets in a significant way.

"Sterling did regain some ground higher against the dollar and gilt yields fell on the scrapping of the 45p rate announcement, but the pound will remain under pressure and high bond yields remain of serious concern.

"Investors' trust in UK plc has had a hole blown through it."

Last week, Nigel Green noted that markets now know where the weakness lies. He added: "If they don't budge, they will have blown up the UK mortgage market, UK pensions, amongst others, and eventually this could spread to impact the wider global financial markets which themselves are sitting on thin ice as liquidity disappears."

"Prime Minister Liz Truss and her Chancellor Kwasi Kwarteng have created a loop of doom.

He concludes: "There will be some relief that the UK government finally seems to be listening somewhat.

"However, the modified plans do not go nearly far enough to ease markets and regain economic trust and confidence."

t: +44 207 1220 925
Twitter: @PriorConsults

deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: Learn more about publishing your news release and our other news services on the newswire

Global investors must adhere to regulations of each country. Please read privacy policy:

That's all it takes to get an article published on Investor Ideas - Learn More