The collapse of confidence in Britain’s shares globally due to the failure and confusion of its policies
The Bank of America, according to the results of its monthly survey of global fund managers, has confirmed that exposure to UK stocks has collapsed in the past month.
In detail, a survey by Bank of America showed that global investors cut their allocations to British stocks in the month since Liz Truss became prime minister.
According to a survey of global fund managers conducted by Bank of America in October, 33% of investors are now underweight British stocks, the most in nearly two years.
“Sentiment toward the economic outlook has remained close to the extreme downside, the latest survey shows,” the bank says.
The annual inflation rate in the United Kingdom rose last September to 10.1% from 9.9% in the previous August, in a continuation of the pressures facing the country.
The National Statistics Office said in a statement, Wednesday that the annual inflation recorded last September returned to the levels of July 2022, amid rising food prices and housing costs.
On a monthly basis, the inflation rate rose by 0.5% during September.
Year-on-year inflation for food and non-alcoholic beverages rose to 14.5% in September, up from 13.1% the previous month.
Housing group prices also rose to 20.2% last month, compared to 20% in the previous month, and transportation slowed to 10.6% from 12% year on year.
And last week, official data showed that Britain’s gross domestic product contracted by 0.3% on a monthly basis in August, affected by the weakness of the industrial sector and maintenance work caused a decline in the activity of the oil and gas sector.
The degree of pessimism escalated towards the British economy towards recession, and the Bank of England expected the recession to start in the last quarter of this year, and to continue until early 2024.
For its part, the New York Times published an article by journalist Tania Gold, in which she said that the British Prime Minister, Liz Truss, for 40 days suffered from forms of ridicule.
Its mini-budget, on which its free-market credentials hung, was a disaster, as bond yields rose, the pound fell, and markets visibly upset.
To mitigate the damage, she rolled back the tax cut for high-income earners, and was rewarded with more sarcasm.
