Political Risk Back on the Table for UK Markets: Hassium CEO

The video discusses the performance of UK assets, particularly equities, which have been a safe haven. The pound has gained value, and the UK market is up 4% year-to-date. The market is more defensive with value over tech, supported by a weaker GBP. Political risks are considered priced in, with no surprises regarding Boris Johnson. Sterling is undervalued, supporting earnings, especially as most Footsie 100 revenues come from the US. Inflation is a concern, nearing 10%, but unemployment is low, reducing stagflation risk. The UK situation is compared to the US and Europe, with political risks noted.

What role does the weaker GBP play in supporting UK earnings?

Discuss the implications of inflation nearing the 10% level in the UK.