The City woke this morning to troubling headlines from Beijing, where news of a plane crashing into a tower has been met with official silence. As gilt yields twitch and risk appetite collapses, the UK government has demanded consular access for any British nationals involved. But the market’s true concern lies in what Beijing is not saying.
Capital flight from emerging markets has already accelerated, and any escalation could send the pound sliding against the dollar. Fiscal hawks will be watching for any sign of emergency spending or central bank intervention. So far, the silence is deafening and the cost of inaction grows by the minute.
