U.K. Assets Are Rationally Exuberant, for Now
The pound, gilt yields and stocks are on a tear amid plans to lift lockdown. Investors should keep sight of the things that can go wrong.
Betting on a bright, shiny future.
Photographer: Hollie Adams/BloombergU.K. Plc is off to a roaring start to the year. Its currency, bonds and shares are all topping the charts. So a lot is riding on the government’s accelerated plan to get the economy out of lockdown, both societally and financially. The risks associated with any misstep are high — and rising.
After botching its initial response to the pandemic, Prime Minister Boris Johnson’s government has been swift to take advantage of its successful procurement and rollout of Covid vaccines. With almost 27% of the population already inoculated with a first dose, Johnson announced this week that schools will start reopening from March 8, followed by a gradual easing of restrictions that would see all forms of social contact allowed by June 21 at the earliest.