25
Sep
British bonds and real estate are in demand
GDP slump. Divided economy. Inflation remains stubborn. BOE still on hold until Q1 2026. High risk premium for bonds and securitized real estate. Potential appreciation of the pound sterling. Growing risks for the FTSE100.
Key points
- Growth slows after a robust start to the year
- The UK economy is running out of steam
- Leading indicators point to a divided economy
- The labor market appears to be easing
- Household confidence is eroding
- Inflation is not showing sufficient signs of slowing
- The BoE remains cautious but is reducing its QT program
- The bond market offers attractive yields
- Prospects for pound appreciation
- Securitized real estate remains particularly attractive
- A cautious approach to UK equities
