Kwarteng

Kwasi Kwarteng is out as UK chancellor but his brief tenure at the top of the UK economy may have been helpful for some trading desks at US investment banks ...

[[email protected]](mailto:[email protected]) in the first instance. ](https://www.efinancialcareers.co.uk/login/register?cm_sp=editorial_registration) Morgan Stanley cited "strength in macro products on high client engagement and volatility in the markets," as the source of the 33% year-on-year increase in its fixed income sales and trading revenues in the third quarter. Citi said today that revenues in its macro trading division rose 18% year-on-year in the third quarter. [ Sajid Javid](https://www.efinancialcareers.co.uk/news/2018/04/sajid-javid-banker-home-secretary), a former CDO banker at Deutsche Bank, would replace Kwarteng as he's the only one close to Truss with any credibility in the markets. Revenues from trading spread (credit) products were down 39%.

The chancellor and prime minister were determined to take radical action in pursuit of economic growth. It didn't matter if parts were unpopular, they would do ...

It is hard to think of a political gamble which has backfired more - or a political relationship which has collapsed more quickly. In the meeting with Ms Truss, his cabinet career was brought to a swift end. Instead, he accepts the government needs to do more emphasise its commitment to balancing the books. Some have told me they are pleased with the appointment of Jeremy Hunt as chancellor. But after just five weeks, the government's economic strategy lies in pieces. There is little sign Mr Kwarteng thinks he or the prime minister got the ideology wrong. The chancellor and prime minister were determined to take radical action in pursuit of economic growth. Those close to the chancellor also portrayed him as politically stubborn; once he had made up his mind he would stick with the plan. Mr Kwarteng's allies briefed that their relationship was solid; that he saw his job simply as delivering the prime minister's vision for a low tax economy. But key elements of the strategy proved too unpopular for the markets and for Tory MPs. Soon came open revolt, with senior Conservatives openly criticising the decision to scrap the 45p additional tax rate. Just three weeks ago, in the poorly named mini-budget, he ripped up years of Conservative economic strategy.