rip-rl5-100-55

Despite lingering concerns from earlier tariff shocks and geopolitical tensions, equity markets rallied on AI-driven optimism, cooling inflation, and expectations of central bank rate cutting. The latter notably from the Federal Reserve in the US. Whilst at the same time, the US showed economic resilience with Gross Domestic Product (GDP) growth for the third quarter, with GDP being revised upwards to nearly 4% on an annualised basis. Positives certainly seemed to outweigh any negatives…

All US markets fell sharply on Friday following Trump’s threat to impose an additional 100% tariff on China from as soon as November.

Earlier in the week, China added five new rare earth minerals (holmium, erbium, thulium, europium and ytterbium) to its control list. This takes the total number of restricted minerals to twelve. China has effectively developed a monopoly on rare earth minerals, and these additions will have a major impact on the US…

As expected, in a week where US President Trump reposted bizarre and offensive AI videos of House Minority Leader Hakeem Jeffries, promoted a “med-bed” conspiracy video, and announced plans to use “dangerous cities” as “training grounds” for the US military, he failed to stop a US government shutdown during last week’s negotiations.

It’s the first US government shutdown since the 35-day shutdown in December 2018…

On Tuesday, Fed Chair, Jerome Powell, reiterated the need for the central bank to balance the competing risks of high inflation and a declining job market when making interest rate decisions. Powell called it “a challenging situation” and said there was no “risk-free path” for the Fed to follow.

The recent rise in 30-year gilt yields has received a lot of interest. With this long-dated government debt reaching a 27-year high at 5.7% (3rd September 2025), investors are naturally questioning the implications for the UK. It could heavily influence how Rachel Reeves manoeuvres within the limited fiscal headroom available in her (more winter than) Autumn Budget.

Yet despite these pressures, there are encouraging signs for the UK…

The US Federal Reserve committee voted to cut interest rates for the first time in nine months. The committee voted 11-1 in favour of the 0.25% cut, with Trump appointee, Stephen Miran, the only member calling for a larger 0.5% reduction.
Federal Reserve Chair, Jerome Powel, said after that “the balance of risks has shifted” away from inflation to concerns about the labour market. Though it remains to be seen what will happen next, with Powell stating “we’re not on a pre-set path” towards further cuts.