Markets continue to trade within narrow ranges. The reopening of economies has delivered a strange brew of supply chain issues, shortages, stuttering industrial production and inflation. Supply chain problems will eventually sort themselves, as will shortages but as we’ve said many times before, we doubt inflation will be quite so easy to fix, All major…
I don’t think Stealers Wheel were referring to central bankers in their 1973 hit ‘Stuck in the middle with you’ although I could well be mistaken. However, everywhere one cares to look at present, the law of unintended consequences appears eager for a fight. Or, to put it another way, Murphy’s Law is alive and…
Not for the first time, this month we find ourselves writing something very similar to what was written the previous month and indeed, the months before that. Markets recognise economic recovery is clearly on the march but Covid-19 outbreaks (and variants thereof) together with higher inflation, temper optimism. If rising prices are indeed temporary, herd…
Mrs Newsome enjoys watching ‘Grand Designs’, fronted by Kevin McCloud. I occasionally watch it and sometimes it’s interesting to see how a family of six now live in an old ship’s funnel, up a tree in the Cotswolds. However, there’s something about him I just don’t like. Pretentious? Airy fairy? Head in the (Mc) clouds?…
Markets remain range bound. Central banks continue to emphasise support (or is it endless subsidy?) despite economies reopening. On the other hand, Covid flareups are still happening and while the Biden administration’s chief medical officer, Dr Anthony Fauci, made it clear he didn’t expect a return to lockdowns, he commented that “things are going to…
Are we there yet? Those familiar with transporting children on long journeys will instantly recognise the question. But from an economic perspective, how close to ‘there’ are we in terms of returning to normality after Covid-19 laid waste? Sometimes, it seems very close indeed but then at others …. it seems to slip further away…
The Nobel Memorial Prize winning economist Milton Friedman noted that “only the government can take perfectly good paper and perfectly good ink and render the combination completely useless”. He was, of course, referring to the dangers of inflation, once governments lose control of it. Inflation is a problem that hasn’t troubled the scorer for years…
Equity markets have retained their poise. Lockdowns are, for the most part, being relaxed and while normality still looks a long way off, the move towards it is undeniable. In the UK, the economy is forecast to attain its pre pandemic peak by the middle of next year, aided greatly by forced saving delivering a…
Markets have remained strong, buoyed by vaccine programmes and potential paths out of lockdown assuming greater visibility. Having said that, with various geographical areas moving at different speeds and talk of third waves, there’s obviously a long way to go before anything resembling normality can resume. Economically, inflation and economic growth dominate discussion. Globally, growth…
World markets have, belatedly, started to consider the return of that mythical beast, inflation. Long considered extinct by many, it’s a species whose DNA looks eminently capable of resurrection in the ubiquitous economic laboratory experiments now being undertaken by just about every government and central bank. Stock markets are directly affected by bond markets because…