Investors are mainly being spooked by global inflation fears, not UK politics. But the additional uncertainty created by the crisis in the Labour government is definitely not helping! Once again, UK government bonds (aka gilts) are making the news again, and not in a good way. The yields on these bonds can be read as … Continue reading How much should we worry about surging gilt yields?
Category: Budget
“As good as it gets” (reprise)
The strong growth in UK GDP reported in the first quarter will not be sustained. At best the economy is set to stagnate again in the second quarter, and possibly in the third too. Some good news for a change. The first official estimate for the first quarter confirmed that the UK economy made a flying start … Continue reading “As good as it gets” (reprise)
Spring Statement was yet another missed opportunity
The Chancellor’s Spring Statement sent a signal of “steady as she goes”. Unfortunately, what was really needed is a change of course. There was plenty of party political knockabout, but no major policy announcements and nothing to lift the spirits of consumers or businesses. This might have been fine if all were well. But there is little … Continue reading Spring Statement was yet another missed opportunity
Better UK economic news owes little to Labour’s policy choices
Friday was a relatively good day for UK economic data, with the latest news on the public finances, retail sales, and the PMI survey all better than expected. This followed Wednesday’s confirmation that headline inflation fell back in January. But is this really evidence that the worst is over – and are the Labour government … Continue reading Better UK economic news owes little to Labour’s policy choices
Plain-speaking Economics 