Weekend Reading
In case you missed it…
Our pick of industry shaping news from the past week within the financial space that we think you’ll love too from Rosely Group’s Global Head of Content, Liam Thomson.
Friday 25th August
What we are reading in the UK
This week saw the latest purchasing managers index (PMI) data published, making for gloomy reading. The data indicates the sharpest downturn in business sentiment since just prior to the crash of 2008, as reported in The Independent. The latest data will pile further pressure on the Bank of England to take its foot off the base rate pedal, and reduce the cost of borrowing for business and consumers alike, as costs of living pressures continue to grow.
https://www.independent.co.uk/news/business/recession-uk-economy-inflation-cost-living-b2397903.html
This article for CapX makes an interesting policy suggestion for dealing with a country's faltering economic fortunes. In the article, the author argues that, to help clear the national debt and therefore lower the cost of credit, which in turn would ease inflationary pressures, the Government should commit to a ‘fire sale’ of UK assets. Such sentiment can often invoke panic about the privatisation of the NHS and other public services, but there are far more assets than most people would expect from a £15bn stake in NatWest (a legacy of 2008) to hotels in Morocco!
https://capx.co/the-country-is-deep-in-debt-time-for-a-state-assets-fire-sale/
This newsletter from a think tank policy lead, explains a major source of the UK’s economic malaise, which is the country’s inability to build. From a shortage of housing to a shortage of lab space, all the way through arcane transport across the UK’s major cities (apart from London), our failure to build the infrastructure of the future is holding us back, argues Sam Dumitriu.
https://www.samdumitriu.com/p/why-britain-struggles-to-build-infrastructure
What we are reading about it the US
Last week we mentioned the Jackson Hole economic conference underway in the US, and all eyes will be on Jerome Powell as he delivers his speech. Last year, as noted in this article from Forbes, the speech led to a stock sell-off. With many analysts suggesting the Federal Reserve Chairman might well pour cold water on the idea of easing off on rate rises, it could be that history repeats itself.
The surprise story of this week has been soaring Nvidia stock, which could hint at a forthcoming AI boom. The chip maker's share price hit all time highs this week, as reported in the Financial Times. With AI investment predicted to hit $200 billion by 2025, this could be just the beginning of an AI gold-rush as Ray Kurzveil’s long-predicted moment of exponential growth arrives.
https://www.ft.com/content/4197702a-9749-4eca-912b-07cc4880c336
This interesting feature in The Tablet, takes a look at a new company town in the US and explores the nature of ‘oligarch urbanism’, giving an insight into some of the social dynamics of the US economy.
https://www.tabletmag.com/sections/news/articles/life-inside-walmarts-perfect-city