The biggest business news story of the past week was Britain. From tax cuts for the rich, to a dramatic drop in the Pound, to weakness in the British government bond market, to questions about the solvency of some British pension funds – it was a week of chaos and a real lesson in chain reactions and unintended consequences for Britain’s leaders. With new Prime Minister Liz Truss sticking with her policy of cutting taxes and ending the cap on banker bonuses, we’ll be watching Britain to see what happens next.
But for investors and consumers both in Britain and outside of Britain, a falling British Pound creates both risks and opportunities. This article from the Associated Press gives a good primer on what a falling Pound means.
And if you’re after more on the effect of currency movements, we covered the unbelievable strength of the US dollar and what it means for us as consumers and investors in a recent episode of The Dive (website / Spotify / Apple).
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