The Readout

Reeves, Rifts and Rising Yields

The economic fallout from war on Iran is testing the relationship between the UK Chancellor and US Treasury Secretary
Scott Bessent and Rachel Reeves during Donald Trump’s state visit to Britain last September.Photographer: Chris J. Ratcliffe/Bloomberg
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Kids from the southeast London borough of Lewisham are not afraid of sharing their opinions. I know this firstly because my daughter is one of them, and secondly because, once or twice, I’ve been absent-minded enough to take a bus around the time that the secondary school gates close. (Life tip: try to avoid doing this.)

Around 40 years ago, one of those Lewisham kids was a precocious young chess player named Rachel. Meanwhile, 3,500 miles away, a precocious young man called Scott was graduating from Yale full of hopes and dreams. It may sound like the start of a particularly trite romantic comedy, but there’s little funny about this story and little love lost between its protagonists. Instead, it centres around rather unromantic subjects such as deep sea mines and gilt yields.