Economic overhaul to combat cost of living crisis

What happened: President Trump declared victory over affordability on Feb. 19, citing cooling inflation. Meanwhile, UK cabinet ministers are studying a blueprint for a radical economic overhaul, including tax reforms and property tax changes, to combat the cost-of-living crisis. Scottish businesses, such as Wunderbar in Glasgow, face cost-of-living crunches due to business rates increases. The Iran war's economic storm is pushing up household outgoings in the UK.

Market impact: The cost-of-living crisis is affecting consumer-facing sectors and businesses with high fixed costs. Retail, hospitality, and small businesses are under pressure. The potential overhaul of business rates in Scotland could impact commercial property valuations and landlord-tenant dynamics. The Iran war's economic storm is driving up mortgage and energy costs, affecting financials and utilities sectors.

What to watch next: The UK's inflation data on Feb. 21 will provide insights into the cost-of-living crisis's extent. The Scottish government's budget on Feb. 28 could offer clarity on business rates reforms. The UK's general election in December will determine the political response to the cost-of-living crisis.