Diesel has passed £2 a litre in Britain for the first time. In February it was £1.41. It is not because the world ran out of oil. Tankers are moving through the Strait of Hormuz again, Gulf exports are back close to pre-war levels, and Brent crude is around $102 a barrel. Crude has partially …
Back in January 2021, you could lend the UK government £100 for thirty years — the safest investment there is. Today that £100 is worth £35. Government bonds have lost 60% of their value, and many fear the sell-off isn’t over.
US yields have just hit 5.2% and UK yields 5.4%, the highest since before the financial crisis. So why are borrowing costs back at 2007 levels when the economy looks nothing like 2007? And why is your mortgage going up when the Bank of England hasn’t moved rates?
Update: since this was written, the White House has denied it is preparing a 90-day ban, and Energy Secretary Chris Wright says nobody is considering a flat ban. But Trump and Bessent have both said restrictions are being looked at, and the economics below apply just as much to a partial ban. US diesel has …
For decades, Germany was Europe’s economic miracle. Low inflation, high growth and a reputation for the best manufactured goods in the world. German engineering was part of the national identity. But, in recent years, it has really struggled, and the political fallout is becoming quite serious. Germany is at the heart of European economy and …
“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope… But now I would like to come back as the bond market. You can intimidate everybody.” This was said in the early 1990s, by an adviser to Bill Clinton. Thirty years later, rising bond …
Back in early March, in anticipation of rising jet fuel prices, I rushed to buy two air tickets to New York (August and October). The cheapest was Norse Air £500 August (very good deal) and £400 for October with a 3% discount for paying by bank transfer. I did buy with bank transfer but for …
Bond yields continue to rise. US 10 year Treasuries are now close to 5%, UK 30 year gilts just under 6%. But, the real problem is what is causing yields to increase. Oil has gone back above $100. And diesel prices are hitting records in the US. Last week the US Treasury Secretary, Scott Bessent, …
Real weekly pay in Britain has never been higher. It’s also just 5% above where it was in 2008 — eighteen years for a 5% pay rise. That gap is this entire video. Because the government are right that the UK grew faster than the rest of the G7 this year, and most people watching …