UK Prime Minister Liz Truss triggered the latest wave of turbulence in global markets after announcing economic plans that include unfunded tax cuts. The move crushed the value of the pound while sending the already struggling country’s borrowing costs soaring.

To Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, the move was reminiscent of US tax cuts imposed under Ronald Reagan in the 1980s, what came to be known as “Reaganomics.” In both cases, the policy was at odds with moves by other nations’ efforts to combat high inflation. Emanuel joined this week’s What Goes Up podcast to discuss the latest bout of volatility across asset classes, and the role the new Tory leader has played in causing it.

“It does represent a radical change in policy that is more evocative of Reagan,” he says. “And investors are going to have to get used to it.”

UK Prime Minister Liz Truss triggered the latest wave of turbulence in global markets after announcing economic plans that include unfunded tax cuts. The move crushed the value of the pound while sending the already struggling country’s borrowing costs soaring. To Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, the move was reminiscent of US tax cuts imposed under Ronald Reagan in the 1980s, what came to be known as “Reaganomics.” In both cases, the policy was at odds with moves by other nations’ efforts to combat high inflation. Emanuel joined this week’s What Goes Up podcast to discuss the latest bout of volatility across asset classes, and the role the new Tory leader has played in causing it.
“It does represent a radical change in policy that is more evocative of Reagan,” he says. “And investors are going to have to get used to it.”

Hosts Mike Regan and Vildana Hajric are joined each week by expert guests to discuss the main themes influencing global markets. They explore everything from stocks to bonds to currencies and commodities, and how each asset class affects trading in the others. Whether you’re a financial professional or just a curious retirement saver, What Goes Up keeps you apprised of the latest buzz on Wall Street and what the wildest movements in markets will mean for your investments.

Hosts Mike Regan and Vildana Hajric are joined each week by expert guests to discuss the main themes influencing global markets.

What Goes Up

Liz Truss's Ronald Reagan Moment

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/effafdc6-1ecc-43b6-914b-af1f00f4308c/transcript

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