Written by Ilaria Massei
Last week, headlines were dominated by political turmoil across key regions, and global bond markets outperformed global equity markets with the Bloomberg Global Aggregate Hedged Index delivering +0.1% and the MSCI All-Country World Index sliding -0.3%.
In the United States, President Donald Trump surprised the world by announcing the decision to fire Federal Reserve Governor Lisa Cook. While it remains highly likely that Cook will contest the removal in court, possibly escalating the matter to the Supreme Court, the move has reinforced perceptions that the White House is attempting to exert greater influence over monetary policy. This political interference has raised questions about the Fed’s independence in its monetary policy decisions, with expectations now pointing to more interest rate cuts, with the first to be delivered as soon as September.
Across the Atlantic, political uncertainty also weighed on European sentiment. In France, Prime Minister François Bayrou called for a vote of confidence to take place on September 4th, reflecting his struggle to pass a budget amid rising fiscal constraints. The uncertainty around the ability of the country to fund its expenses led to an increase in French government bond interest rates, as investors demand higher compensation for the increased risk of not being repaid. While these political developments are closely watched by our team, we do not invest directly in French bonds, but prefer investing with a global, more diversified approach to Fixed Income markets.
Amid these macro-political events, the spotlight also turned to corporate earnings, with Nvidia reporting its highly anticipated results last Wednesday. The chipmaker beat revenue expectations, reflecting continued demand in the AI and GPU sectors. However, its data centre revenues – a key driver of recent performance – came in slightly below consensus estimates, with the division generating $41.1 billion in revenue, up 56% from a year earlier, but just below the $41.3 billion analysts had forecast. As a result, the company’s share price gave back some of its recent gains.
Taken together, last week’s events highlight the increasingly complex interplay between political developments, central bank policy, and corporate performance. As markets respond to these factors, investors will need to stay nimble and avoid focusing on a single market to manage risk and capture opportunities wherever they arise.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this document is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
The content of this document is for information only. It is advisable that you discuss your personal financial circumstances with a financial adviser before undertaking any investments.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete. Unless otherwise specified all information is produced as of 1st September 2025.
© 2025 YOU Asset Management. All rights reserved.
