Investors with exposure to UK assets like the FTSE index should exercise caution due to negative GDP growth and a widening trade deficit, painting a bearish picture for the UK economy.

Rose nearly 1% after UK inflation came in lower than expected (3.8% vs 4% forecast), leading to speculation the Bank of England might cut interest rates sooner, which is a positive catalyst.

The index hit a record high, with the surge driven by particular strength in healthcare stocks, indicating positive market performance in the UK.

A strong bearish view was expressed, suggesting the UK is in a potential 'death spiral'. A specific pair trade was suggested to short the FTSE.