Why are global markets so quiet?

This edition of the BBC World Business Report addresses the puzzling calm in global markets despite significant world events like wars and political unpredictability. Gillian Tett from the Financial Times discusses potential explanations, including market complacency, a time lag in the impact of announced policies, and investor disorientation due to multiple shocks. Chris Lowe from FHN Financial adds that markets have calmed because traders have reduced leverage and corporate profits are holding up. The report also covers the vulnerability of global supply chains, highlighting a new Global Sourcing Risk Index that identifies risky countries for sourcing, with Mexico and the U.S. surprisingly high on the list. Finally, the podcast discusses a Vatican-backed report calling for changes to the international financial system to aid indebted countries, and the emerging trend of cities revitalizing urban waterways for economic and recreational purposes.