'Massive s***show!' City traders fume at Liz Truss and predict her imminent demise


London finance insiders are fuming at Liz Truss following the Government’s announcement to cut taxes and increase spending, which has caused volatility in the markets. Following the announcement, Pound Sterling hit an all-time low against the dollar and the gilt market, UK Government bonds, were thrown into chaos prompting an intervention by the Bank of England.

Traders leaving work today in Canary Wharf made their views on the policies known to Express.co.uk, with some even predicting Liz Truss’s political demise by the end of the year.

One exasperated insider told Express.co.uk: “We don’t know what’s f** happening.”

Another, who works in economic research, echoed the comments. He said: “Things have been changing so fast the last few weeks, sometimes [it feels like] days happen in years. It’s so volatile it can be hard to keep up.”

He added: “The talk has been will Truss be out by December and who will replace her?”

The announcement of the mini budget on Friday prompted a huge selloff of the Pound which continued into this week. By close of business on Wednesday in the UK, GBP was trading around £1.09 to the dollar up from earlier in the week.

Today, the Bank of England announced it would begin purchasing long-dated UK bonds in an attempt to stabilise the gilt market which, if the “dysfunction” were to continue, could pose a “material risk to UK financial stability”.

A London Stock Exchange worker told Express.co.uk: “[It’s] a massive s***show at the moment. [The Government] has made a massive faux pas trying to impress people. They’ll have to roll back some of it [the policies].”

Many pension funds are invested in the gilt market – bonds are generally seen as an extremely safe investment. However, an industry insider said the BoE intervention was like attempting to “plug a bath with a needle”.

He said: “Clutching at straws, it’s a bit like trying to plug a bath with a needle. Right idea but the markets have made their mind up. The problem is here both sentiment and intraday traders will be working on this.

READ MORE: BoE had to take action to stop mass pension funds insolvency TODAY

 Today, the Bank of England announced it would begin purchasing long-dated UK bonds in an attempt to stabilise the gilt market which, if the “dysfunction” were to continue, could pose a “material risk to UK financial stability”.

A London Stock Exchange worker told Express.co.uk: “[It’s] a massive s***show at the moment. [The Government] has made a massive faux pas trying to impress people. They’ll have to roll back some of it [the policies].”

Many pension funds are invested in the gilt market – bonds are generally seen as an extremely safe investment. However, an industry insider said the BoE intervention was like attempting to “plug a bath with a needle”.

He said: “Clutching at straws, it’s a bit like trying to plug a bath with a needle. Right idea but the markets have made their mind up. The problem is here both sentiment and intraday traders will be working on this.

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The Bank of England is thought to be planning another interest rate increase before its scheduled meeting on November 23.

It increased the rate by .5 percent to 2.25 percent last Thursday, before Chancellor Kwarteng announced the Government’s mini budget.

The move is an attempt to stop rampant inflation which has seen consumer goods rise nearly 10 percent in price since this time last year.

As the Government purses policies aimed at economic growth, industry insiders and everyday Brits alike are closely watching the markets and the Government’s next move.



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