Finally, after days of sitting in limbo, Britain has a new Prime
Minister and a new ruling party. What does it mean for the United
Kingdom exchange traded fund (
), the broader situation in Europe and Britain's own struggling
Greece's budget deficit gets all the attention, but Britain's
may actually be just as bad.
The latest numbers are out on the EU's Spring economic forecast
of its 27 member countries. Britain's budget deficit has risen to
about 12% of GDP and is now the largest in the European Union,
. Alleviating this debt will be the biggest and most
important challenge of the new government. [
U.K. ETF Set for a Spill?
Britain's new Prime Minister David Cameron took office yesterday
and marked the end of decades of liberal rule in the country. He's
got his work cut out for him as he works to bring two dueling
parties together. One major order of business is reducing Britain's
high unemployment rate of 2.5 million people now seeking work,
reports John F. Burns for
The New York Times
Is the U.K. ETF on the Right Path?
The United Kingdom ETF has struggled like most European-focused
ETFs year-to-date. It's down nearly 8% in that time. So far, the
British market has greeted the new ruling party with yawns, sending
stocks and the British pound lower. The markets there are waiting
for more details about how the government plans to tackle the big
issues before it reacts. [
Euro ETFs: Out of the Woods?
For more stories about Britain, visit our
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Read the disclaimer
; Tom Lydon is a board member of Rydex|SGI.