People are starting to react to increases in the cost of living, cutting non-essentials and spending less. Central banks are soon to follow suit by increasing interest rates further.
The war in Ukraine has dampened global growth as waves of COVID-19 continue to roll across the world. Meanwhile, politics is back to the fore in Europe and America.
Western central banks are trying to rebalance the scales in bond markets without causing a panic. Meanwhile, COVID-19 and bog-standard politics are still influencing markets in Europe and Asia.
Cost of living fears seem to be peaking in the UK as a raft of important protections end. How will the economy hold up as households and companies tighten their belts?
UK inflation is now above 6% and rate rises appear imminent. What does this mean for your clients fixed income and capital? Bryn Jones, our head of fixed income, joins the panel to discuss, addressing the following within the debate:
- What fund managers are doing to mitigate the impact of inflation on fixed income
- The impact of rising interest rates on an already leveraged financial system
- The implications of running loose monetary and fiscal policy at the same time
The 1970s suddenly seem relevant again given soaring oil prices, high inflation and rising interest rates. But we’re not expecting a rerun of 1970s-style spiralling prices, sputtering economic growth and weak equity market returns.
This year has been grim so far, yet equities recovered much of their losses last week. Meanwhile, oil prices are all over the place and COVID-19 is wreaking havoc in the East.
Commodity markets are fuelling further inflation and putting global growth at risk. Central banks have shown they want to unwind years of emergency monetary policy regardless, sending bond yields higher.