Merryn Talks Money

Plunging UK Markets, What's Reeves Moment, and the ESG Rollback

Jan 8, 2025
In this engaging conversation, John Stepek, author of the Money Distilled newsletter and keen observer of market trends, dives headfirst into the UK’s financial turmoil. He discusses the plummeting value of sterling and UK gilt prices, while shedding light on the pressures facing Rachel Reeves and the Treasury due to rising borrowing costs. Stepek also critiques the recent rollback on ESG initiatives among major banks, highlighting the implications of these shifts in compliance culture for the financial services sector.
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INSIGHT

Social Media's Impact on Travel

  • Social media has increased the net present value of travel.
  • It provides conversational value and status, impacting luxury travel trends.
INSIGHT

Soaring Gilt Yields

  • UK gilt yields have risen sharply, reaching highs not seen since the late 1990s.
  • This surge impacts everything from mortgage rates to equity markets and removes fiscal headroom for the government.
ADVICE

Adapting to Higher Interest Rates

  • Prepare for higher interest rates indefinitely; they will not return to previous lows.
  • Organize your finances and investments around this new reality.
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