The New York Knicks faithful descended on San Antonio this weekend, and the yield on their euphoria was palpable. In what pundits are calling a textbook example of sports diplomacy, the cross-border fan celebration has sparked debate about the UK's soft power strategy. Market analysts, however, are more interested in the bottom line.
The event cost an estimated £2.3 million in municipal spending, but the return on investment in terms of global goodwill and tourism is expected to be high. Yet I cannot help but wonder: is this a sustainable model, or a speculative bubble in sentiment?
The UK government's reliance on such 'feel-good' exports to offset Brexit-related capital flight is a risky bet. The FTSE 250 barely ticked up on the news. Central banks should take note: real fiscal discipline, not fanfare, is what steadies markets.
