Word on the Street #303 The return of President Trump
Jan 23, 2025
Francis Addai, an expert at Barclays Bank known for his insights on market analysis, joins Sophie Barrington to unpack the latest in the financial world. They dive into the turmoil in the UK economy, scrutinizing rising debt levels and government bond yields. Addai also discusses the potential impact of President Trump’s policies on market fluctuations, including currency volatility and trade tariffs. The conversation highlights how Trump's unique communication style shapes market dynamics, offering a fresh perspective on the current economic landscape.
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UK Market Sell-off
- UK assets like stocks, sterling, and bonds have experienced a sell-off.
- This sell-off is concurrent with President Trump's inauguration and various policy announcements.
UK Economy and Debt
- The UK's rising debt levels and worsening fiscal outlook are concerning, but betting against the UK is generally not advised.
- Rising bond yields are a global phenomenon, influenced by US growth and inflation expectations.
UK Employment Data Concerns
- While UK employment data appears to be deteriorating, there are quality issues with the data from the Office of National Statistics (ONS).
- The claimant count rate, a more reliable metric, remains stable, suggesting a potentially more positive outlook.