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In this week’s newsletter:
- Will the Bank of England Raise Interest Rates?
- GBP in Focus Ahead of By-election
- Gold Retreats From Record Highs. What’s Next?
- Why We Think SpaceX is Overvalued
- ECB Raises Interest Rates
- Can You Really Afford to Retire?
- EasyJet Shares Rally on Takeover Talk
It’s a pivotal few days for UK politics and economics next week, with May inflation data, a Bank of England interest rate decision, and a by-election that could decide the fate of the current prime minister and that of the ruling Labour party.
The current front-runner to win the by-election, Andy Burnham, has already waded into the debate on UK pensions. This comes as new research shows the cost of even a “moderate” retirement living standard has rocketed.
SpaceX SPCX marked its first trading day on Friday, a seismic moment for Elon Musk, for global stock markets, and indexes. We look at what it means for direct investors in the stock—Morningstar thinks the stock is overvalued—and those in the UK with funds and investment trusts with exposure to it.
One reason that gold is falling is that investors have more exciting places to put their money, including hot new IPOs like SpaceX, and geopolitical risk appears to be receding. Our most-read story this week is an analysis by Valerio Baselli of why the yellow metal is out of favor. It’s worth reading, in tandem, his piece on why bitcoin is also unloved.
This week Christian Mayes also updated our monthly look at most shorted stocks in the UK. Housebuilders feature prominently on this list, largely because sentiment has soured significantly since the Iran war started. Much depends on the Bank of England as well as politicians—the possible new UK prime minister, who faces a public vote next week, has pledged to build more homes, especially social housing, and stop treating property like a commodities.
