Asian stocks fall and Brent rises to over $115 a barrel; Trump says US could seize Iran’s export hub on Kharg Island
Government bonds around the world are set for the biggest monthly losses in more than a year, as investors worry about the impact of a prolonged war in the Middle East on inflation and economic growth.
Declines in bond prices have pushed their yields (or interest rates) higher, although they eased on Monday.
Now that the reality is sort of sinking in that perhaps the oil price might stay high for a bit longer, given that it’s hard to see an end to the war anytime soon, the growth impact is starting to become more of a focus.
The buzzword here is stagflation. Initial focus was on inflation. Now the ‘stag’ bit is moving into the picture, and that’s perhaps explained why short-ended bond yields have come off.
To be honest with you, my favourite thing is to take the oil in Iran, but some stupid people back in the US say: ‘why are you doing that?’ But they’re stupid people.
