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Investors get real-time view of UK bond market activity for the first time

fca.org.uk

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Re: Investors get real-time view of UK bond market activity for the first time

#21

Post by pjc50 »

monkeydust wrote: post #14
andy_ppp wrote: post #12

Earlier quoted context omitted.

What is he going to do without the bond markets - the UK is in so much debt we basically need to jump however high they tell us to, unless he plans to default which would destroy the global financial system and destroy the UK for decades. The only way I can see out of this is to absolutely frack the crap out of the UK and push for more North Sea oil drilling. But we definitely won't do that so maybe we'll try a bit o…

I think ...or hope ...he ends more right than left and manages to do what Starmer failed to do a year ago which is to make major reforms to the Welfare system. Its just not sustainable.

There really isn't a lot of slack in the welfare system unless you're prepared to be very short sighted and go back to "tent city" levels of homelessness. Which is partly why all previous attempts to cut it have failed. Maybe declaring certain areas of high rent off-limits for housing benefit, but then you have to raise the salaries of NHS staff and teachers living in London so they can afford to work there.

Maybe if the Miliband reforms pay off and certain critical things get built and gas prices return to normal, Labour will be able to take credit for lower electricity prices? Unless it's all spent on datacenters, which would be even worse political doom.

Personally I'd go with the "mansion tax" but that requires ignoring the well-connected screaming. They did manage that with VAT on private school fees.

Re: Investors get real-time view of UK bond market activity for the first time

#22

Post by mathieuh »

andy_ppp wrote: post #12
AdamN wrote: post #8

Earlier quoted context omitted.

Burnham being PM is already pretty well priced in. When he walked back comments a few weeks ago they corrected and my sense is that the market understands that unless there until actual laws or budgets are promulgated, what is said by Burnham isn't really market moving.

What is he going to do without the bond markets - the UK is in so much debt we basically need to jump however high they tell us to, unless he plans to default which would destroy the global financial system and destroy the UK for decades. The only way I can see out of this is to absolutely frack the crap out of the UK and push for more North Sea oil drilling. But we definitely won't do that so maybe we'll try a bit o…

The irony is the top three tax havens are overseas territories of the UK and subject to legislation which should curtail their tax-haven status but which the UK is unwilling to enforce

https://taxjustice.uk/blog/worlds-top-tax-havens-are-british...

Re: Investors get real-time view of UK bond market activity for the first time

#23

Post by cryptonym »

mark_l_watson wrote: post #13

Potentially, the raising interest rates because investors don’t trust the long term stability of the UK economic system (more spending on pro-war activities, sluggish economic growth, and higher than expected government borrowing) will crash their financial system. I hope I don’t sound too selfish but I am a USA citizen, and I would rather worry about my own country’s medium-term financial future.

Let's play a game

> Potentially, the raising interest rates because investors don’t trust the long term stability of the [Guess the country] economic system (more spending on pro-war activities, sluggish economic growth, and higher than expected government borrowing) will crash their financial system.

Re: Investors get real-time view of UK bond market activity for the first time

#24

Post by gpderetta »

pjc50 wrote: post #19
monkeydust wrote: post #17

Earlier quoted context omitted.

the tax exemptions make it very attractive place to hold cash versus bank accounts - if your a UK citizen google (or AI) - low coupon gilt investing.

Eh, for most people it's simpler to just use a cash ISA which can provide almost the same rates. Most people don't want or need to carry a huge cash float as opposed to other kinds of investment.

Well, yes, but after maximizing an ISA that's still an option. Also the government is clamping down on cash ISA.

Re: Investors get real-time view of UK bond market activity for the first time

#25

Post by Urahandystar »

pjc50 wrote: post #21
monkeydust wrote: post #14

Earlier quoted context omitted.

I think ...or hope ...he ends more right than left and manages to do what Starmer failed to do a year ago which is to make major reforms to the Welfare system. Its just not sustainable.

There really isn't a lot of slack in the welfare system unless you're prepared to be very short sighted and go back to "tent city" levels of homelessness. Which is partly why all previous attempts to cut it have failed. Maybe declaring certain areas of high rent off-limits for housing benefit, but then you have to raise the salaries of NHS staff and teachers living in London so they can afford to work there. Maybe if…

Yeah but the VAT on school fees meant a load of those children had to go to state schools so we ended up paying for it anyway.

Re: Investors get real-time view of UK bond market activity for the first time

#26

Post by mark_l_watson »

alex_duf wrote: post #18
mark_l_watson wrote: post #13

Potentially, the raising interest rates because investors don’t trust the long term stability of the UK economic system (more spending on pro-war activities, sluggish economic growth, and higher than expected government borrowing) will crash their financial system. I hope I don’t sound too selfish but I am a USA citizen, and I would rather worry about my own country’s medium-term financial future.

>I hope I don’t sound too selfish but I am a USA citizen The rest of the world is getting tired of worrying about the US's economical situation, whether it the dotcom bubble, the sub-primes, or now the potential AI bubble. So apologies for being blunt here, but yes it does sound selfish to me

Yes, I do sound like a jerk. Difficult though to not worry about local bullshit a lot more than other country’s bullshit. While I care for every person on our planet, I spend more time thinking about the future of my children and grandchildren.

Re: Investors get real-time view of UK bond market activity for the first time

#29

Post by zipy124 »

pjc50 wrote: post #19
monkeydust wrote: post #17

Earlier quoted context omitted.

the tax exemptions make it very attractive place to hold cash versus bank accounts - if your a UK citizen google (or AI) - low coupon gilt investing.

Eh, for most people it's simpler to just use a cash ISA which can provide almost the same rates. Most people don't want or need to carry a huge cash float as opposed to other kinds of investment.

That only works if the capital is already in an ISA or you want to invest less than £20k (soon to be 12k) though. It is common to use gilts to build a gilt ladder to have some level of guaranteed income for older/retired people. This allows you to build your own cheap annuity.

Re: Investors get real-time view of UK bond market activity for the first time

#30

Post by gib444 »

AdamN wrote: post #8
gib444 wrote: post #3

Will this help us see how badly Burnham bungs bonds in real time? I jest I jest

Burnham being PM is already pretty well priced in. When he walked back comments a few weeks ago they corrected and my sense is that the market understands that unless there until actual laws or budgets are promulgated, what is said by Burnham isn't really market moving.

How do they know what he will do to the economy before even he does? That's impressive

I wasn't referring to his becoming PM but what he does during the premiership, you know, the more important part

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