Political Fix Reeves vs the markets
13 snips
Jan 17, 2025 Robert Shrimsley, an FT columnist, and Stephen Bush, a political commentator, dive into the turmoil facing Rachel Reeves amidst bond market chaos. They explore the battle between economic management and market forces, questioning who truly holds power. The discussion also highlights the UK's stagnation, critiques past economic decisions, and assesses the political fallout within the Labour Party. Additionally, they consider new leadership in pensions and the opposition's response to pressing issues, all while navigating the complexities of UK foreign policy.
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Reeves vs. Markets
- UK financial markets impact Rachel Reeves's chancellorship.
- Her influence is debated, with some arguing markets ultimately dictate economic outcomes.
Market Volatility
- Recent UK bond market volatility mirrors US trends, not Reeves's actions.
- US market shifts impact global bonds, influencing UK borrowing costs.
Growth Challenges
- Labour's assumption of automatic growth after a change of government was wrong.
- Reeves inherited long-term economic challenges requiring slow-burn solutions.