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Markets Wobble as Britain Gets a New Prime Minister and Energy Worries Grow


If financial markets are sending a message to Britain’s new prime minister, Liz Truss, it’s one of concern.Ms. Truss, who was named on Monday as the choice of Conservative Party members to be the next prime minister, faces huge economic challenges as energy prices soar and the cost of living becomes increasingly unaffordable. With the outlook darkening and a recession becoming more likely, the pound near its lowest level against the dollar since March 2020, and is approaching its lowest since 1985.Elsewhere in Europe, markets started the week on shaky footing after the Russian energy giant Gazprom said on Friday that it would not restart the flow of natural gas between Russia and Germany through the Nord Stream 1 pipeline on Saturday as expected. Natural gas prices jumped, and stocks slumped.Last month, the British pound dropped 4.5 percent against the U.S. dollar, its worst month in nearly six years as the economic outlook deteriorated. Households were told to expect their energy bi …

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