LONG-TIME economic commentator and news presenter Jim Cramer has offered a scathing view on the UK’s position in the world from America’s perspective – branding it a “sideshow” and a “giant clown show”.
Cramer, a former hedge fund manager who hosts Mad Money on US news channel CNBC, slammed the UK’s status amid news of Liz Truss’s resignation.
Asked about his view on how Truss leaving her role would affect the American markets, Cramer told his co-hosts that it would have no impact at all.
“The UK is a bit of a sideshow,” he explained to viewers, before his co-presenter replied in agreement.
“Sideshow is brutal, because it’s such an important country historically,” Cramer added.
“We have to cover the UK,” he explained – before saying that in days gone by he would have been “all over this, trying to figure out what the impact would be”.
“It’s a giant clown show over there,” he said. “There isn’t anything that impresses me as a valid way to run a country. This was a great country, could be a great country again.”
The 67-year-old went on to discuss why Truss had been ousted with his colleagues.
“If you do something that is completely opposite of what we need in the world, which is try to control inflation, then yeah you deserve to be bounced,” he argued.
“We’re at this critical moment in time where we have to stop inflation – and somebody comes along with a plan, let’s stoke inflation?! … I thought it was ill-advised.”
Meanwhile, there was some recovery in the markets following Truss's announced departure.
The resignation speech sent the pound and Government bonds upward while the FTSE 100 tipped into the green.
The FTSE 100 closed 18.92 points higher, or 0.27%, at 6,943.91.
The interest on Government bonds – known as gilt yields – eased in response to the announcement. It suggests traders were approving of her departure as they are not rushing to let go of Government debt.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Sterling is highly sensitive to economic policy uncertainty and even though the ship Britannia will still be left largely rudderless, with a successor still to be chosen, as far as investors are concerned, the future is marginally brighter without her in charge.”
But analysts also pointed out that the political turmoil is far from over and the modest uplift in UK markets reflects investors’ desire for stability.
Streeter added: “With the third prime minister in just a year expected to be announced by the end of the month, the UK will still be viewed in financial markets as politically unstable.
“What investors crave is more steadiness and reliability but until they know who will take charge and lead an economic recovery, that stability still remains highly elusive which means that neither sterling nor stocks are likely to make any big strides of progress.”
