Knowledge and insight

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.

The war in Ukraine has united typically quarrelsome European states against Russian aggression. Meanwhile, unity in President Vladimir Putin’s nation has been enforced through the strength of an authoritarian regime.

Russia’s invasion at first wrong-footed both Ukraine and the West, but the defenders’ resolve has been tougher than expected. Now, financial sanctions are hitting Russians hard.

UK retail sales bounced back after a COVID-crushed Christmas. Yet the longest income squeeze since Sir Robert Peel was Prime Minister is set to intensify in the coming months.

Talks to ward off conflict over Ukraine are failing and a Russian invasion is reportedly imminent. Is it brinkmanship or a real risk?