Week Ending 12/09/2025 – Inflation pumped markets overcome political volaltility & fiscal precipices
Gareth and Jeremy discuss the key factors that have impacted financial markets over the past week and take a look ahead to what lies ahead for investors.
Bond markets got the yips over talks of IMF visits for France and the UK. However, no one informed the FX market, and the value of the £ remained solid, helped in part by the weakening of the $. However, it's all relative, and the real value of things is reflected in gold and other real assets.
US labour markets showed more signs of weakness, but with persistent inflation.
US tech giants continue to dominate, but with little scrutiny of the returns that their substantial AI capital expenditures might yield. Oracle was in the spotlight this week, with some extraordinary results, launching its founder back into the top spot on the world's richest person leader board.
Despite our volatile politics, UK equities remain in demand, and risk assets more broadly remain in good fettle.
The long wait for the UK Budget might be because they are working on a cunning plan for growth, or they are simply waiting for things to improve. Of course, both could be true. Either way is a frustrating wait.
Meanwhile, the results and updates offer a mixed bag, indicating that the UK consumer remains active.
Jeremy offers a view on Treatt's fall from grace and its Board's disappointing acceptance of the modestly pitched PE offer the company received this week.
Looking ahead, the main focus will be on the Fed's rate decision, where the overwhelming expectation is for a 25 bps cut to 4.25%.
But most people will be more interested in President Trump's second state visit to the UK, which begins on Tuesday. Shhh, nobody mention Jeffrey Epstein.
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