UK Borrowing
The Office of Budget Responsibility predicted that the UK would borrow GBP11.6 billion in June. As it turned out the UK did in fact borrow GBP 14.5 billion in June. All sorts of questions arise about the OBR and just how such a large overshoot in borrowing could occur given the already eye wateringly high level of UK indebtedness at 99.5% of GDP. However the plans to nationalize the railways will cost significant amounts although they may be exactly what is required, but the liabilities and costs of assuming responsibility for the UK’s railways will doubtless send borrowing up versus Chancellor Reeves’ pledge to reduce borrowing.
GBP/USD 1.2914.
Alternative Investment
For many years there have been efforts made to standardize and commoditize investment in fine arts. In the USA there is a company called Masterworks in which one can do just that by buying and (maybe) selling shares. All an investor requires is a minimum stake of USD 15,000 and a strong stomach. The marketing blurb does contain risk warnings and at the same time extols the virtues of diversification in one’s investment portfolio provided it involves buying into Masterworks. There is some stuff about illiquidity but as any seasoned investor knows, illiquidity implies a temporary lack of liquidity rather than a more permanent one. The problem with fine art is that it is by definition fashionable and when falling out of fashion the bid offer spread on art could well be more of a gulf than a chasm. Just think of those pictures of fox hunting scenes of yesteryear.
GBP/EUR 1.1868.