Worldwide Financial Planning

You can have all the water in the world, but if the pipes are clogged or run through someone else’s tap, good luck getting a clean wine glass mate. That’s what we’re seeing now with global finance. The water - money - isn’t the only story anymore. It’s the pipes: how it flows, who controls the taps, and what happens when someone upstream decides to turn off the supply.

The US president unveiled a sweeping package of additional tariffs on US imports, with the largest hikes being added to goods from its biggest trade partners. But Trump and his trade advisers are in a very small minority that think these measures will be anything other than damaging to US and global economic growth.

Back in the 1990s, the dollar held over 70 per cent of global foreign exchange reserves. Today, it’s down to 58.4 per cent, and still falling. That’s not a collapse, but it’s a message.

By making a show of meeting its Stability Rule of reducing borrowing in the fifth year of any forecast, the chancellor laboured to show that despite borrowing rising in the short term, gilt investors just need to be patient to allow reforms and rising growth to tame borrowing. Muted market reaction shows the cuts have bought some time, but the small margin in the Chancellor’s forecast doesn’t allow a lot of room for further disruption.

I WAS to follow up on the potential impacts of people moving away from the dollar toward using other payment clearing systems and what impact that would have, but forgot the Spring statement was coming and so used this opportunity to get some popcorn out, ask a sommelier to wine pair with the popcorn and hey presto, you have my excitement below.

Despite the cautious attitude of central banks, government bonds have continued to rally. Markets are seeing a slightly higher chance of rate cuts later this year, but investor nervousness means defensive assets, including government bonds, remain in demand.