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Highlights
- The IMF has reprimanded UK chancellor Kwasi Kwarteng for crashing the British economy.
- BBC's economics editor, Faisal Islam, said this was a harsh rebuke without a clear-cut precedent.
- On Wednesday, Labour leader Keir Starmer said that PM Truss and chancellor Kwarteng had lost control of the country's economy.
The International Monetary Fund (IMF) has reprimanded UK chancellor Kwasi Kwarteng for crashing the British economy. BBC's economics editor, Faisal Islam, said this was a harsh rebuke without a clear-cut precedent.
On Wednesday, Labour leader Keir Starmer said that PM Truss and chancellor Kwarteng had lost control of the country's economy. This came as the pound slid almost at par with the dollar, and the Bank of England (BoE) stepped up to buy unlimited long-term government debt.
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The IMF has said that it is cautiously scrutinising the economic events taking place in the UK while working with the authorities. The financial institution indicated that the fiscal package would help households and businesses deal with the energy crisis.
Nevertheless, the IMF does not recommend any massive and directionless fiscal packages at this stage as the inflationary situation worsens. Additionally, the recent moves might add up to the inequality faced in the country.
The IMF said that the budget to be presented on 23 November would give an early opportunity to the government to contemplate ways of offering more targeted support and re-assess the tax-related actions, particularly the ones that help high-income earners.
In the current economic setup, Kalkine Media® explores banking stocks based on their YTD (year-to-date) returns.
Standard Chartered plc (LON: STAN)
The UK-based worldwide operating banking and financial services firm Standard Chartered plc's market cap stands at £16,494.63 million. The FTSE 100 bank's returns on YTD basis stand at 26.27% as of 29 September. Meanwhile, its one-year return stands at 30.60%. With a P/E ratio of 9.07, the company's EPS (earning per share) stands at 0.61. STAN shares were trading at GBX 566.20 on Thursday at around 11:40 AM (GMT+1).
Bank of Georgia Group plc (LON: BGEO)
The market cap of the British holding company operating as a banking group, Bank of Georgia Group plc, stands at £969.94 million. The FTSE 250 bank's returns on YTD basis stand at 18.61% as of 29 September. Meanwhile, its one-year return stands at 28.30%. With a P/E ratio of 3.24, the company's EPS stands at 15.22. BGEO shares were trading at GBX 1,978.00, down by 1.59%, on Thursday at around 11:45 AM (GMT+1).
HSBC Holdings Plc (LON: HSBA)
The market cap of the global banking and financial services holding firm, HSBC Holdings Plc, stands at £96,535.48 million. The FTSE 100 bank's returns on YTD basis stand at 6.26% as of 29 September. Meanwhile, its one-year return stands at 23.72%. With a P/E ratio of 7.68, the company's EPS stands at 0.62. HSBA shares were trading at GBX 476.85, down by 1.37%, on Thursday at around 11:45 AM (GMT+1).
