The impact of the US-Iran War has been far-reaching across the world and from an economic perspective the UK is by no means exempt: raised oil and gas prices have led to higher inflation and a less straightforward path to reducing interest rates than had previously been expected.
As is often the case, bond markets have stepped in to call the shots and dictate the course of action needed: shorter-dated gilt yields have risen, pushing up mortgage and corporate borrowing costs and effectively delivering a tighter monetary policy environment without the Bank of England raising interest rates – more on this in our bond focus article from Head of Investment Office Jon Cunliffe.
Diamonds are forever – but the methods used to produce them are not, as the boom in sales of lab-grown diamonds in recent years has proven. Research Analyst Jack Summers tracks the trajectory of the industry over the past 200 years, from De Beers’ longstanding domination of global supply through to the shake up the industry has undergone due to man-made disruptors offering vastly cheaper prices than natural equivalents.
While the diamond trade offers a reminder that no industry is immune to disruption, a perennial question for investors is how to achieve growth from a diversified spread of investments in an era where returns are largely driven by stocks related to the biggest disruptor in recent times –the AI revolution. As AI-related stocks continue to wield a disproportionate influence on growth in both US and world markets, our Markets in Focus article covers this issue and the wider global investment climate.
Should governments ever intervene to try to encourage their countries’ investors to opt for domestic equities over the array of options abroad? As the Pension Schemes Act 2026 gives the UK government the power to mandate that pension providers invest a proportion of their portfolios in UK private markets (currently in existence as a voluntary scheme, the Mansion House Accord), CEO Hugo Bedford explains why he feels UK equities hold enough merit to attract investors in their own right, without the need for external intervention.
Taking measures to maintain an enduring appeal has also been front of mind for our guest editorial author, Steve Elworthy, CEO of Surrey County Cricket Club (SCCC): he explains how SCCC has adapted to modern times. The club continues to draw in record crowd numbers as it celebrates both its 180-year history and a 25-year partnership with JM Finn. Part of that success is due to an ability to foster cross-generational love of the sport by offering formats such as the T20 that appeal to younger fans, alongside more traditional red-ball matches.
Bringing families together in the name of sport might be a decidedly easier task than solving how best to transfer the $124 trillion held by baby boomers globally to their younger family members. Wealth Planner Charles Barrow offers food for thought about the available options to pass wealth on in the most efficient way. As regulations around Inheritance Tax are changing, bringing more estates within scope, it can often be a good idea to start discussions around this topic sooner rather than later – and our Wealth Planning team remain on hand to help.
