Sunak will fail. Xi Jingping: doing a Liz Truss? EU & UK in recession. Drone wars.
Surprising behaviour of energy prices
https://open.acast.com/public/streams/633b3ddf2ce407001121c7e5/episodes/63580bac5f0a00001232c24b.mp3
The new UK prime minister is destined to fail. Fiscal & monetary policy is about to be tightened as the UK economy enters recession. Pro-cyclical macroeconomic policy is hardly a good look when so much else is going wrong, when he still has to appoint talentless ideologues to his cabinet.
China’s leader gets his third term, looks to be set for life and has now decided to ‘buck the market’. Maybe not in exactly the same way as Liz Truss but he has seemingly turned away from the market to re-embrace old-fashioned communism. Capital, where it can, is flowing out of China, with big falls in stock prices and the exchange rate. It was an embrace of market reforms post-1978 that gave China its growth. Bucking the market could well have unintended consequences. Growth could be a casualty. Taiwan, and the rest of the world, could be another.
Wholesale gas prices on both sides of the Atlantic have fallen a lot from their Summer peaks. Why has my energy bill just gone up again?
For a look at the horror that is Russian State TV, follow @JuliaDavisNews. Let’s hope there are trials for war crimes when this is all over.
Big fan of the Podcast, though..Keep up the good work.
Hi Lads. What will interest rates be in four years time? Get the dart board out. Although there are signs of prices coming down and central banks ruining the global economy, what will give more years of a zero covid policy during a Chinese winter do for the supply chain?
I thought the changes to the central bank mortgage rules would have featured this week! Why loosen the rules and why now? I think we discussed before what the central bank might do if there were signs of a property slow down. Have they moved to counter a slow down before we even see one begin to emerge?
Is it time to stop measuring currency strength against the dollar? If the euro, pound and the yuan are all weakening against the dollar then surely the common denominator is the dollar and the real story lies there? Is this just interest rate parity with the US having raised interest rates very highly? Also the demand surge from everyone paying more for commodities all traded in dollars?