Merryn Talks Money

John Stepek, a Senior reporter at Bloomberg and author of the Money to Sift newsletter, dives deep into the UK housing market's complexities. He discusses why January's asking prices aren't as promising as they seem, with recent sellers often losing money. The conversation tackles the stark contrast between London and the rest of the UK, the decline of flats as investments due to rising liabilities, and the implications of falling mortgage rates. Stepek also offers practical buying advice in this shifting landscape.

Jeremy Grantham, co-founder of GMO and a veteran investor known for spotting market bubbles, shares his insights on the current AI bubble and how it mirrors past market disasters. He debunks the myth of the small-cap premium, discusses the interplay between quality and momentum in investing, and warns individual investors to watch for valuation signals. Grantham also highlights the dangers posed by central bankers and offers advice on venture capital and mission-driven work, emphasizing the importance of practical skills in today's market.

This week, Marcus Ashworth, a Bloomberg Opinion columnist focused on European markets, joins John Stepek to unpack the complexities of the UK property market. They reveal why falling London flat prices might not offer real bargains due to factors like leaseholds and cladding issues. Marcus explores the bounce in oil prices linked to geopolitical risks and discusses the recent silver surge and its speculative nature. He also analyzes UK Chancellor Rachel Reeves's strategy to reshape the gilt market through shortening debt maturity, highlighting its implications.

George Agan, a Chartered financial planner from Flying Colours Advice, dives into the peculiar challenge of shifting from a lifelong savings mindset to spending in retirement. He discusses the psychological hurdles retirees face after achieving financial goals and the importance of cash-flow planning for sustainable income. The conversation also covers troubling tax implications for heirs and encourages retirees to rethink their spending motives, advocating for intentionality in retirement activities and purposeful gifting to family.

Michael Haigh, Managing Director of Fixed Income and Commodities Research at Societe Generale, dives into the complexities of Venezuela's oil reserves and their impact on global markets. He explains why political actions won't result in immediate oil output increases and highlights the influential role of OPEC and China in price dynamics. The discussion also explores copper's bullish potential driven by electrification and AI, while gold and silver remain attractive due to central bank demand, though risks loom if buying slows.

The hosts celebrate the FTSE 100 closing above 10,000 and ponder its future stability. They delve into investment themes for 2025, emphasizing the influence of geopolitical tensions on defence, commodities, and precious metals. The discussion touches on the impact of recent geopolitical events on market performance and sparks lively debate about the US tech sector's potential pullback. With rising interest in a new commodity cycle, they explore the implications of AI adoption on productivity and employment, all while considering the broader political landscape.

Explore how to take control of your personal finances even in challenging times. Discover why a monthly money check-up can be a game changer. Learn to prepare for mortgage renewals early to avoid pitfalls. Find out the importance of tax-efficient accounts like ISAs and optimizing your pension contributions. Get insights on keeping cash handy for emergencies and protecting your crypto assets. Plus, don’t overlook the necessity of a will and proper organization of your financial documents!

John Hardy, Global Head of Macro Strategy at Saxo Bank, dives into futuristic yet plausible market shocks. He discusses the potential threats of a quantum computing breakthrough on encryption, leading to crypto chaos and bank runs. The duo explores the burgeoning space economy, including a possible SpaceX IPO and the idea of lunar real estate, and the societal shifts driven by GLP-1 drugs. Throw in some clever banter about AI risks and a golden yuan challenging dollar dominance, and you've got an intriguing look at the year ahead.

In this second part, John Stepek, a journalist and storyteller, delves into the tumultuous life of John Law, a Scottish gambler who reshaped France's financial landscape. They explore Law's rise as Controller-General, the founding of the Banque Générale, and the thrilling trading frenzy on Rue Quincampoix. The conversation reveals the precarious bubble of paper money and its spectacular collapse, linking historical context to modern monetary theory, highlighting the necessity of strong institutions for fiat currency to thrive.

Discover the fascinating life of John Law, a Scots gambler turned financier who reshaped modern money in France. From his reckless youth and tumultuous legal battles to his daring escape from prison, Law's journey is filled with scandal and ambition. Delve into his revolutionary ideas on banking, paper money, and credit systems that challenge our understanding of finance. Learn how his visionary reforms emerged during troubled times, setting the stage for modern economic concepts we still grapple with today.