Volatility ripples through global markets as weakening economic data exposes overstretched positioning
Volatility rippled through global markets at a breakneck speed in early August. An unexpected Bank of Japan (BOJ) interest rate hike on 31 July sparked an 8% rally against the dollar, triggering an unwinding of the yen-funded “carry trade”, where investors borrow interest-free in yen to invest in high-yielding assets globally.
UK manufacturing revival masks nationwide sector-specific woes
The recent revival in the UK manufacturing sector has led to the strongest growth spell in two years. Manufacturing firms have reported strong order book volumes, prioritised working through order backlogs, and benefited from a resurgence in activity following a traditional pre-General Election investment pause.
UK Trade: exporters must strengthen supply chains and embrace AI and sustainability
UK trade dynamics have been unfavourable for years. Global demand has been stifled by a long list of formidable headwinds, including Brexit, trade disputes, pandemic-induced supply chain disruptions, and macroeconomic pressures.
