Merryn Talks Money Have We Finally Turned a Corner?
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Aug 14, 2025 Join Marcus Ashworth, a Bloomberg Opinion columnist and market guru, as he dives into the surprising upswing of the UK economy. He discusses the implications of positive GDP figures and why government spending is crucial. The conversation shifts to the housing market, identifying challenges like stagnating prices and repossession worries. Ashworth also analyzes corporate debt dynamics and highlights investment strategies focused on tax efficiency amid current financial uncertainties. This insightful chat is packed with expert perspectives!
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Growth Driven By Government, Not Private Sector
- UK GDP showed unexpected momentum driven largely by government spending rather than private sector strength.
- Marcus Ashworth warns this backward-looking data shouldn't change the Bank of England's cautious stance on rates.
High Savings From Policy Anxiety
- Household saving remains high partly because people fear future tax and pension changes and react by saving more.
- That elevated savings rate can dampen consumption and slow the economy despite healthy balance sheets.
Media Fear Fuels The Paradox Of Thrift
- Marcus jokes that negative media coverage makes people reticent and increases saving, which creates a paradox of thrift.
- He links cautious consumer behaviour to less economic momentum and lower overall demand.