1. Central BanksConsider a situation where the most recent government appointee to the central bank quickly becomes its most dovish member, voting for the biggest interest rate cuts in an attempt to drag the committee his way. His dissents take them into the unchartered territory of a three way split, forcing a second vote for …
Read more “The Two Weeks That Will Be (21st September 2025)”
1. FranceFor a country about to lose its fourth prime minister in nineteen months, French assets are remarkably becalmed. On Monday, PM François Bayrou will face – and lose – a no confidence vote that he called in himself ahead of thorny budget negotiations with a divided parliament. Two days later, on Wednesday, the nation …
Graphic courtesy of PoliticsHome:
Summary The Challenge The large Labour majority hides a serious problem for the Gilt market: the government has no mandate to deliver a credible plan. Simply being a change from the Conservatives whilst taxing jobs, farmers and family businesses and removing benefits from the old and the disabled does not a policy platform make. Even …
“Maximum warfare, everywhere, all the time”. This is how a member of the Trump administration has described their political strategy to the New York Times. Just because it’s the summer doesn’t mean the momentum will ease. If anything, a reality TV star President entering his ninth decade with a year until the mid term elections will …
1. The USThe Powell era at the Fed is over. He is yesterday’s man, as should have been clear the moment a new President took over. Announcing his replacement for Chair now, ten months before his term ends, is not as unusual as the more hysterical headlines would suggest. Mark Carney took over as BOE …
++ With thanks to Tom Berey and the team for their hard work ++
The tears of a UK Chancellor would not normally trouble Gilt investors, unless they reflected, whether intentionally or not, the physical manifestation of an unstoppable political force meeting an immovable fiscal object. The detail of the government’s welfare reforms were scrambled together to ensure meeting the fiscal rules for the Spring Statement, only to unravel …
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