Artificial intelligence, illusions and algorithms - the new market forces

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 7 October 2016

⏱️ 50 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

It’s the best money show on the radio. Of that we are in no doubt.

What is in doubt, though, is what’s behind our ‘economic recovery’ and the small matter of the future of Britain.

Georgie and Simon are joined by ace This is Money investment and business reporter Ellie Lawrie to pore over the week’s strange events.

To the soundtrack of the Prime Minister’s pro-Brexit speech at the Conservative Party conference, the FTSE 100 was hitting near record highs.

Behind the headlines, the story was somewhat different.

The FTSE 100 index of leading shares is mostly made up of foreign companies so when their earnings are converted into pounds, they’re suddenly worth a lot more. That’s why the market is rising.

But some clever maths shows that in real-terms the market is in fact down.

Confused? Listen now.

Also in the show

A flash crash smashed sterling, Are we being controlled by algorithms and should we be worried?

Among the platitudes aimed at loyal voters, PM Theresa May’s speech also included a promise to end corporate greed and corrupt banks. That would be a good thing but how would she pull it off?

Wills – two in three of us haven’t got one and that’s an unnecessary problem.

What would you do with £50,000? With rates so low, the traditional ‘overpay your mortgage’ answer is outdated.

Fivers – should we keep them as collectors’ items or spend them? It’s a cashless society. Could they become valuable.

As Christmas toys hit the shops, we ask what was your favourite toy? Did you kill Tamagotchis or make things with Lego?

Enjoy.

Transcript

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0:00.0	This is Money, brought to you in partnership with NS&I, giving you 100% security for your savings.
0:18.0	A very warm welcome. I'm Georgie Frost. You're listening to consuminguming Issues here on Share Radio. It's time for This Is Money podcast in partnership with NS9. Joining me is editor Simon Lambert and journalist Ellie Laurie. And we were left flawed this week by politics. I'm not talking UKIP members or Lancashire Council for the pound.
0:36.7	Nervousness surrounding sterling after the Brexit vote.
0:39.4	Something large is the market, other algorithmic trading systems out there detect it,
0:43.2	and everything pauses on top of one another, and then the orders to sell are triggered,
0:46.9	and it all becomes a cascading effect.
0:48.6	Sterling dropping to a 31-year low, Theresa May firing the starting gun for what looks like a hard Brexit.
0:55.6	With all that going on, were we equally taken with the new Prime Minister's call for change
1:00.3	as she closed the Conservative Party Conference, the Party of the Working People.
1:04.1	Come with me as we rise to meet this moment. Come with me and together let's seize the day.
1:13.5	Carpe DM indeed, but actually, should we be thinking more longer term? I'm talking for
1:19.5	our own lives here. Have you written a will? The number of claims that end up in the
1:23.4	High Court are really just the tip of the iceberg, probably about 90% of claims,
1:30.8	will be settled before even reaching court.
1:33.4	Two-thirds of us haven't made provisions for our loved ones.
1:37.2	When we die inheritance disputes on the up, families chorn apart.
1:39.4	We answer one reader's questions.
1:42.6	Say you do get a winful, for whatever reason.
1:44.1	What would you do with it?
1:45.3	We look at some options.
1:50.5	Now, I got to hold and spend my first plastic fiver this week, very excited.
1:52.4	But should I have held on to it?
	...

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