{"id":539064,"date":"2025-10-31T04:22:23","date_gmt":"2025-10-31T04:22:23","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/539064\/"},"modified":"2025-10-31T04:22:23","modified_gmt":"2025-10-31T04:22:23","slug":"rachel-reeves-wants-brits-investing-just-as-the-city-fears-an-ai-bubble-politico","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/539064\/","title":{"rendered":"Rachel Reeves wants Brits investing \u2014 just as the City fears an AI bubble \u2013 POLITICO"},"content":{"rendered":"

\u201cThere is no doubt that the government would find it much harder to drive retail investment in a period of financial turbulence,\u201d added Chris Rudden, head of investment consultants at Moneyfarm. \u201cAppetite to invest is linked to strong recent market performance. If there was to be a bubble that bursts in the coming few months, then it could make their job impossible.\u201d<\/p>\n

IG\u2019s Beauchamp argued that the government would need to pursue a broader education plan \u201cto help people through the inevitable pullback\u201d and prevent them from avoiding the stock market permanently. \u201cHow you do that without scaring people witless is a Herculean task,\u201d he added.<\/p>\n

Laith Khalaf, head of investment analysis at AJ Bell, suggested investment platforms could encourage regular incremental savings in the stock market, known as dollar cost averaging, rather than throwing one lump sum in, which he said \u201cmitigates the risk of a big market downdraft.\u201d<\/p>\n

One solution that appears to be under consideration by Reeves as part of the autumn budget is to introduce a minimum U.K. stock shareholding in ISAs \u2014 which she could argue would protect British savers from a U.S. downturn and pump more money into local companies.<\/p>\n

This too is not without risk. The FTSE 100 derives nearly 30 percent of its revenue from the U.S., according to the London Stock Exchange<\/a>, and U.K. markets are generally incredibly sensitive to macroeconomic shifts across the Atlantic.<\/p>\n

\"\"The FTSE 100 derives nearly 30 percent of its revenue from the U.S., according to the London Stock Exchange. | Jeff Moore\/Getty Images<\/p>\n

Meanwhile, if an AI-induced stock bubble isn’t enough cause for concern, worries of trouble in the private credit sector exploded this month after the collapse of sub-prime auto lender Tricolor and car parts supplier First Brands left some U.S. banks with significant losses, causing a spillover onto public markets.<\/p>\n

BoE governor Bailey recently drew similarities between risks in the asset class and the 2008 global financial crisis, saying it was an \u201copen question\u201d if the event was \u201ca canary in the coal mine\u201d for a market meltdown.<\/p>\n

If one domino falls, they all could \u2014 and that would leave Britain’s chancellor in a real bind.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cThere is no doubt that the government would find it much harder to drive retail investment in a…\n","protected":false},"author":2,"featured_media":539065,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[1213,25548,1942,3427,331,748,1194,346,6725,2001,2437,6659,2814,32054,473,32,2266,393,474,4882,4884,2348,2817,1197,18956,2441,1144,619,363,17472,48,712,6647,479,1200,16,15,49,1764],"class_list":{"0":"post-539064","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"category-united-kingdom","9":"tag-americas","10":"tag-andrew-bailey","11":"tag-artificial-intelligence","12":"tag-banking","13":"tag-banks","14":"tag-britain","15":"tag-budget","16":"tag-cars","17":"tag-central-banks","18":"tag-communications","19":"tag-companies","20":"tag-crisis","21":"tag-data","22":"tag-data-centers","23":"tag-defense","24":"tag-donald-trump","25":"tag-education","26":"tag-england","27":"tag-finance","28":"tag-financial-stability","29":"tag-great-britain","30":"tag-history","31":"tag-intelligence","32":"tag-investment","33":"tag-kristalina-georgieva","34":"tag-markets","35":"tag-northern-ireland","36":"tag-rachel-reeves","37":"tag-retail","38":"tag-retail-investment","39":"tag-rights","40":"tag-scotland","41":"tag-stability","42":"tag-tariffs","43":"tag-tax","44":"tag-uk","45":"tag-united-kingdom","46":"tag-united-states","47":"tag-wales"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/539064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=539064"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/539064\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/539065"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=539064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=539064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=539064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}