The City of London may be my usual beat, but the news from across the Atlantic has a direct bearing on our domestic markets. The suspects behind the San Diego mosque attack have been revealed, according to US law enforcement. While details remain scarce, the fallout is already being felt in Britain.
Muslim communities here are on high alert, and the pound sterling is showing signs of jitters. This is not merely a humanitarian concern; it is a political risk that investors are pricing in. When social cohesion fractures, capital flight follows.
I recall similar spikes in gilt yields after the 2017 Manchester bombing and the 2019 London Bridge attack. The market hates uncertainty, and this news injects a fresh dose of it. The Home Office will likely face pressure to increase counter-terrorism spending, which means either higher taxes or more borrowing.
Neither is palatable for a Chancellor already wrestling with inflation above 2%. My advice to readers: watch the FTSE 250 for defence stocks and brace for a choppy session on the bond market. The bottom line is that security threats have a cost, and we are about to see it on the balance sheet.








