The UK economy is in a state of crises, as the incompetent PM flounders, using the feckless Chancellor as a scapegoat. Truss reversed the disastrous mini-Budget, rejected by the markets and blamed her Chancellor Kwarteng, throwing him under the bus. This is probably the most incompetent leader of Britain in their long and great history and faced with a crises, she has turned it into an existential threat to the British economy and their people. It can only be a matter of time before she is forced to resign and the Government falls. UK Gold Bond Yields again rose and the GBP fell back to 1.1150.
Britain has overshadowed disaster unfolding in Europe, with Germany following Britain down the path to economic catastrophe. The EU sanctions and green energy policies have triggered a major energy crises, robbing Europe of its lifeblood, cheap and reliable energy. This has sent inflation across Europe spiralling out of control, with a political ECB, failing at every measure. German Whole sale Prices hit nearly 20%, while PPI exploded, increasing nearly 46%. The massive increases in costs will devastate German and European manufacturing sectors and the economy. EU trade reflected this, with a massive trade deficit, of more than EUR$50 Billion for the month of September!
The coming week will be highlighted by a week-long National Congress for the Chinese Communist Party and ending with a full meeting of the European Council. Inflation and growth will be keenly watched by markets and more volatility is expected, while the European Council desperately searches for a solution to the economic crises facing them.