Gilts Steady as Investors Await More Policy Details From Burnham | The Opening Trade 7/21/2026

Watch on YouTube ↗  |  July 21, 2026 at 10:08  |  1:35:46  |  Bloomberg Markets
Speakers
Maryam Anousheh Amin — Multi-asset Fund Manager, Maggi Investments
Max Kettner — Chief Multi-Asset Strategist, HSBC
Adam Linstead — Bloomberg Markets Live Reporter
Oliver Dorey — CEO, Hensel
Lorenzo Mariani — CEO, Leonardo

Summary

The episode covers UK political upheaval as new PM Andy Burnham appoints former defence secretary John Healey as Chancellor, signaling higher military spending. Markets show muted reaction in gilts but UK defence stocks rally. The Middle East conflict continues with US strikes on Iran and Houthi threats to Saudi shipping, keeping oil volatile. The Farnborough Airshow highlights defence partnerships and delivery challenges. Tech earnings, particularly hyperscalers, are in focus ahead of Q2 reports. Additional trade tensions emerge with new US tariffs on Canada.

  • New UK PM Burnham surprises with Healey as Chancellor, boosting defence spending expectations and lifting UK defence stocks like Babcock.
  • Gilts steady after initial selloff, with mixed views on long-duration UK bonds and short-term fiscal angst.
  • Oil prices hover near $88 as US strikes Iran for a 10th day and Houthi militants threaten Red Sea blockade of Saudi Arabia.
  • Farnborough Airshow features CEOs from Leonardo and Hensel discussing partnerships, delivery challenges, and next-gen fighters.
  • HSBC strategist Max Kettner remains max bullish on equities, favors hyperscalers over semis, and sees a potential 5-10% S&P 500 correction ahead of US midterms.
  • Maggi Investments fund manager Maryam Anousheh Amin likes long-end UK gilts and is rotating into Chinese equities from Korea.
  • US announces 50% tariffs on Canadian goods with a 30-day window, reigniting trade tensions.
  • European tech stocks benefit from an Asia-led semiconductor recovery, while luxury and health care sectors lag.
Ideas
Maryam Anousheh Amin Multi-asset Fund Manager, Maggi Investments 14:46
Long UK long-dated gilts
UK long-dated gilts offer attractive yields with inflation cooling, no wage spiral, and a wide spread over bunds. The market has already priced in a lot of risk, and long-term fundamentals support duration exposure.
UK Long-End Gilts MED
Maryam Anousheh Amin Multi-asset Fund Manager, Maggi Investments 19:22
Long Chinese equities
Chinese equities have underperformed and are showing a reversal in performance, with recent AI model innovations underscoring the shift. The manager is redeploying capital from Korea into China and other underperforming markets, viewing this as part of a rotation out of momentum trades.
FXI MED
Adam Linstead Bloomberg Markets Live Reporter 41:27
Short-term bearish UK gilts
Short-term UK gilts face headwinds from fiscal angst. The new UK government is signaling higher defense spending and energy bill tax cuts, which may be funded in ways that raise yields. Elevated energy prices add to the negative backdrop.
UKGILT MED
Max Kettner Chief Multi-Asset Strategist, HSBC 51:10
Long US hyperscaler stocks
US hyperscalers have a low bar to surprise positively on both earnings and narrative. CapEx estimates have already been raised 30% this year, so any indication they won't keep upgrading, or that free cash flow will turn positive sooner, could boost the stocks. The sell-off in the Mag 7 is overdone, favoring hyperscalers over semis.
QQQ HIGH
Max Kettner Chief Multi-Asset Strategist, HSBC 58:12
Watch for S&P 500 correction
Ahead of the midterms, stretched positioning, fading fiscal impulse, and negative seasonal factors could drive a 5-10% correction in US equities. This would be a buying opportunity after the midterms, not the start of a bear market.
SPY MED
Max Kettner Chief Multi-Asset Strategist, HSBC 60:03
Long European equities
European equities have been upgraded to overweight as a way to play the broadening trade away from momentum. The region offers similar performance to the equal-weight S&P 500 and benefits from rotation into value and out of tech concentration.
VGK MED
Max Kettner Chief Multi-Asset Strategist, HSBC 60:29
Long European banks
European banks are the best sector, as earnings revisions held up even when yield curves flattened. Any renewed steepening would propel banks higher, and the earnings trajectory can re-accelerate.
EUFN MED
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This Bloomberg Markets video, published July 21, 2026, features Maryam Anousheh Amin, Adam Linstead, Max Kettner discussing UK Long-End Gilts, FXI, UKGILT, QQQ, SPY, VGK, EUFN. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Maryam Anousheh Amin, Adam Linstead, Max Kettner  · Tickers: UK Long-End Gilts, FXI, UKGILT, QQQ, SPY, VGK, EUFN