By Asset Allocator Journal Staff
The Bank of England cut interest rates by a quarter point to 4.25%, citing global trade tensions and slowing economic growth, according to the Financial Times and Business Matters. The decision reflects concerns over tariff uncertainties and weakening UK demand, with inflation pressures easing but risks lingering from geopolitical and trade disruptions. Wealth managers may see clients adjusting portfolios toward safer assets as yields soften.
British Steel will hire 180 workers after a UK government rescue secured its future, per Business Matters. The recruitment, including engineers and operators, signals a production ramp-up at Scunthorpe, boosting local economies and steel-related investments. Posts on X echo optimism about the move, though some note muted media coverage. This could lift UK industrial stocks, offering opportunities for sector-focused portfolios.
In the US, unemployment claims fell by 13,000, beating expectations, per Advisor Perspectives. The labor market’s resilience suggests consumer spending may hold firm, supporting equity markets despite tariff fears. However, Advisor Perspectives notes that tariff risks are reshaping manager positioning, with funds shifting toward defensive sectors like utilities and healthcare to hedge against trade policy volatility.
Advisor Perspectives also reports tactical investment rules turning neutral, signaling caution as markets navigate tariff threats and mixed economic signals. Their May 2025 dashboard emphasizes three layers of risk management—diversification, hedging, and stress-testing—urging advisors to prioritize stability. Another piece questions whether US exceptionalism is waning for equity investors, citing high valuations and global uncertainties, potentially pushing capital toward international markets.
Wealth Management highlights key RIA moves: Anthony Stich left MarketCounsel to join Moran Wealth Management, a $5 billion RIA, strengthening its leadership. Private Advisor Group recruited an RIA founder managing $4 billion at Neuberger, expanding its network. These shifts reflect growing consolidation in wealth management, with firms vying for top talent to scale client services.
Advisor Perspectives underscores advisors’ role in calming clients during market turbulence, advocating for disciplined rebalancing to counter volatility. On succession, the outlet highlights Warren Buffett’s model, where clear planning ensured Berkshire Hathaway’s stability, a lesson for advisory firms navigating leadership transitions.
The Financial Times reports a UK-US trade pact as a diplomatic win for Prime Minister Starmer, despite domestic struggles. This could stabilize UK markets, though tariff concerns persist. Separately, OpenAI’s governance issues, per the Financial Times, raise questions about AI investment risks, with regulatory scrutiny looming. Bill Gates’ criticism of Elon Musk over USAID cuts, also per the Financial Times, highlights tensions in philanthropy, potentially affecting ESG-focused funds.
Advisor Perspectives explores “Bonzai Bonds,” questioning if 14% Treasury yields could return amid inflation fears and tariff-driven deficits. While unlikely, such scenarios could reshape fixed-income strategies, favoring short-duration bonds.
