UK back to the 1970s
Well, we’re now firmly in double-digit territory in the UK, in terms of YoY CPI increases. This is not only the biggest market story, it’s dominating the Main Street news. The UK does not have the protection that comes from issuing the world’s reserve currency, and it has a relatively open economy.
Wrap
Generally equity and commodity markets were weak, although crude broke a long losing streak. Bonds were fairly flat.
The FOMC minutes were released but there didn’t seem any great revelations. According to Trading Economics, the takeaway was that a 75bp hike next time became less likely.
Grateful 🙏 pic.twitter.com/L3Gg3QrIuT
— Willem Middelkoop (@wmiddelkoop) August 16, 2022
Thought
I listened to a few more episodes of the excellent Tortoise podcast series ‘Londongrad’. The investigation is by Paul Caruana Galizia, who takes this personally: his mother was murdered by corrupt Maltese politicians. It makes me feel ashamed to be British when I hear, yet again, how Britain sets out to attract dirty money from around the world while pretending to take anti-money laundering seriously.
The Russians are deeply embedded in the UK establishment. They are smart and charming, and extremely wealthy, but this wealth is stolen from ordinary Russians who suffer terribly. We simply should not be supporting this, and certainly not giving them peerages.
At the very least Boris Johnson comes out of this looking extremely naive.
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