We have for many years recognised that the era of globalisation is over and the world is becoming more local and regional. The trade dispute between the US and China is one of many pieces of evidence to support the thesis that “globalism”, in all its forms, is a spent force.
View of the Day
Gold has been on a tear since the beginning of May, the commodity rising by about 30% over the period. This is a reflection of the market shifting towards expectations of a prolonged global growth slowdown, possibly leading to a recession.
While this move in the precious metal may be extended in the short term, I believe that there are number of good reasons why gold can continue to climb higher.
A recent report estimates that the world’s data will grow at a compound annual growth rate of 61% between now and 2025, from a level of 33 zettabytes to a level of 175 zettabytes. As a quick aside, one zettabyte equals one trillion gigabytes.
According to recent research, most British women admit that they would rather talk about pretty much anything (even death!) other than their personal finances. Whether it’s how much we earn or how much debt we have, the general consensus is that we don’t want other people knowing about what we do or don’t have in the bank.
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Government bonds shouldn’t be considered a safe haven asset, says Anthony Rayner, manager of Miton’s multi asset fund range.
To say that not all bonds are the same is stating the obvious but to suggest that government bonds shouldn’t be considered a safe haven asset, is a little braver.
The trade war rumbles on. How significant is a threatened 10% on more Chinese exports to the U.S.? In itself, not very significant at all. At least not as far as China is concerned. We have, over the past few months, received enough data on the initial tariffs to understand the near-term effects.
Up to a million children are owed around £1.5bn in public funds. We have to act quickly to reunite them with their money.
This same time next year the first cohort of Child Trust Fund (CTFs) recipients will turn 18. CTFs were set up by the last Labour government to encourage saving for children. The initiative was based on the idea that providing young people with a certain amount of money at the start of their adult lives would engender greater financial confidence.
Euro interest rate markets are pricing in a rate cut by the ECB at its next policy meeting on 12 September.
It’s become an obsession in financial markets to talk about yield curve inversions and the predictive power of forecasting future recessions. However, with the bond market as distorted as it is by ultra-low interest rates and quantitative easing, perhaps the yield curve no longer gives helpful signals.