Making sense of this crazy world
Investment markets have slipped this week, as oil prices and bond yields have risen.
The two main conflicts continue to drag on, and we are seeing more signs of aggression than any hopes for peace.
Domestically, despite the headlines, there is good news on UK inflation. This is placing less pressure on the Bank of England to raise interest rates and UK consumer confidence is at its highest level for two years.
This week’s content:
- Middle East tensions spread
- Russia/Ukraine intensity increases
- Oil ratchets up bond yields
- US treasury yields rise despite help from the Fed
- More trouble looming from higher grain prices
- UK inflation rises too
- Good news if you are a borrower
- UK consumer confidence is the highest for two years
- Conclusion
Middle East tensions spread
Tensions are certainly rising across the Middle East. Trump doesn’t like being marginalised and has threatened to bomb Oman. He is unhappy that they are cooperating with Iran with reports suggesting that they are looking to charge traffic through the Strait. President Trump has confirmed that there are no ongoing talks with Iran now.
The United Arab Emirates has cut all economic ties with Tehran after accusing Iran of firing ballistic missiles at its territory, escalating regional tensions.
The BBC reported that US Treasury Secretary, Scott Bessent, urged US allies to support efforts to squash the Iranian economy.
“We are going to collapse this regime. It is time for our allies and the rest of the world to make a decision”, he told CNBC. “You are either with us or against us”. Bessant said “the planned pressure campaign on the Iranian economy would minimise the need for a large-scale kinetic restart of the conflict”.
Not quite what the Trump regime had in mind at the commencement of hostilities.
Continues…
Want to get this in your inbox?
Our CEO, Gary Neild, writes engaging Market Commentaries every week. If you would like to receive the full version straight to your inbox every Friday, please join our communications list.
Risk warning
Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.