n the UK, Brexit is proving not to be the solution it promised as the lack of European workers triggers cascades of labour shortages and rising prices – October’s 2021 Consumer Price Index (CPI) printed an inflation rate of 4.2%. Xi and Biden notably held their telephone summit after COP26 when the climate challenge no longer needed to be at the top of their agenda. Instead, they focused on staking their respective claims on the global ‘New Economy’, using the spectre of military engagement both as carrot and stick. Europe faces philosophical dilemmas as gas prices escalate over the year, and energy prices jumping threatens weakened political motivations. Even at a more local level, fractures are apparent when Indonesia’s president signing the international deforestation agreement was immediately met by, of all people, rebukes from its environmental minister arguing for greater license to deforest. However, COP26 did bring one constant to light. We are seriously running out of our carbon budget. Whatever the politics and front lining we show, the reality is catching up. Asset bubbles can keep growing, but investments at some point have to face up to reality. Since the Great Financial Crisis, we have fuelled one of the most fantastic equity and bond market rallies in history. Global equity markets, as represented by the ILITY Finance Monthly. Inve s tmen t 49
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