A look at the day ahead in European and global markets from Anshuman Daga
Just two months ago, Liz Truss said her government’s defining mission would be to revive the economy.
That job has become even more tougher for whoever is chosen as the next British PM after Truss was ousted following six chaotic weeks marred by policy shocks.
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Sterling edged down in Asian trade after a short-lived rally on Thursday following news of Truss quitting, and analysts pointed to little respite for the battered currency.
In a note titled: “New leader, old problems,” Mansoor Mohi-uddin, chief economist at Bank of Singapore, said the UK budget deficit is “still set to exceed 5% of GDP, the current account deficit is a huge 8% of GDP” and forecast that the UK will contract by 0.8% of GDP in 2023.”
He said that even if former finance minister Rishi Sunak wins and retains Jeremy Hunt as chancellor,…