What will Liz Truss mean for the stock market and investors?
Britain has a new Prime Minister who has vowed to be pro-business and help consumers, but will that filter through to the stock market? Simon Lambert and Richard Hunter discuss the UK's change at the top on this episode of the Investing Show. Liz Truss is taking on both Britain's top job and an economic challenge that would make most baulk. Inflation has breached double-digits, at 10.1 per cent, and is forecast to rage higher still. Meanwhile, the pound has slumped against the dollar, UK borrowing costs are rising, business and consumer confidence is sinking and the Bank of England is warning about recession. Yet, on the flipside, looked at overall Britain's business and household finances are in decent shape and the consumer economy fared much better through Covid than many expected. Meanwhile, the UK stock market has held up better than most this year - with the FTSE 100's big international firms supporting that index - and until the cost of living crisis combined with the downfall of Boris Johnson as PM, the UK was being talked about as an investing opportunity. So can our new Prime Minister get confidence back up and investors buying in, or does whoever is at Number 10 Downing Street make little difference to the UK stock market and would investors be better off looking for guidance from across the Atlantic and the state of the US economy and markets?