The New UK Sunak Government had steadied markets, but in coming weeks it will become increasingly clear the fractured Tories are trapped in no-Growth Austerity. Can they escape, or is it time for a Political Reset?
When the fact change, change strategy. The enthronement of Xi Jinping represents such a moment – and comfirms the big theme for coming decades: The Middle Kingdom vs the West.
Today we likely get a new PM. The opportunity for Rishi Sunak is challenging, but he may get markets on side and start the recovery process for the deeply dysfunctional and divided Conservative Party. He probably still loses by 2024 – but political stability may be back on the agenda.
Many firms are heavily invested into the “Metaverse” seeking to monetise it. Their expectations are based on very conventional understandings of what the Metaverse could offer as a “venue”. Yet we really have few clues about its real potential, and how it may evolve in completely different directions spawning completely new forms of m-commerce..
Something is rotten in the state… A deep rooted canker underlies the current crisis. Removing it will give the UK a real chance at some kind of Brexit Bonus, Growth and Prosperity. But we have to change, and change utterly.
In Bonds There is Truth – but until Real bond yields turn positive they remain financially repressive. If Central Banks “pivot” from tightening rates to address inflation too early, markets will remain fundamentally distorted.
“Leverage, Liquidity and Volatility upturn markets, triggered by policy mistakes, ignorance, hubris or plain getting it wrong. These are dangerous times as multiple issues threaten confusion – so some simple market mantras might help!”
If you thought Unfunded Spending was a bad idea, don’t be fooled Austerity is going to be any more successful. It’s Anti-growth, regressive and will push the UK into deep recession, but about the only policy option left open to the discredited Tories.
Morning Porridge Extra. Jeremy Hunt? Really? Jeremy Hunt is the [...]
Well, that was a fun week… but the UK’s travails are the tip of the iceberg of market pain facing the global economy. More political, geopolitical, liquidity and leverage driven crises are coming as markets reverse out the QE era. Don’t Panic!
Disclaimer
This publication is protected by US, UK and International Copyright laws. All rights reserved. No License is granted except for the subscriber’s personal use. Rights will be pursued.
The Morning Porridge is not investment advice. It is market commentary based on discussions and information gathered from multiple sources believed to be reliable. No guarantee is given for its accuracy or completeness. It is not an offer to buy, sell or solicit investments or securities. The author may have a position in companies or institutions discussed in this commentary.
If you want to know what’s really happening and why.. welcome to the Porridge.
Financial Market Insights for Thinkers!
© Morning Porridge | All Rights Reserved | Website Design & Support by Orange Pixel
