Gathering clouds

Global Market Review Questions over growth Investor sentiment during September was a hostage to concerns over faltering economic growth, rising inflation, surging energy prices, and an increasingly hawkish tone from central banks, compounded by speculation that Chinese real estate giant Evergrande might be on the verge of collapse. Tapering moves closer in the US The … Continue reading “Gathering clouds”

Will the Bank of England be raising interest rates soon?

Until recently, the Bank of England’s Monetary Policy Committee (MPC), which has responsibility for setting interest rates, was undecided if conditions were right for tightening monetary policy. Andrew Bailey, the Governor of the Bank of England (BoE), revealed in August that the MPC could not categorically say that there was clear evidence that significant progress … Continue reading “Will the Bank of England be raising interest rates soon?”

Economic Review September 2021

Upgrade to UK GDP growth The Office for National Statistics (ONS) has revised UK economic growth for Q2 2021 to 5.5% from an original estimate of 4.8%. The UK’s level of GDP is now 3.3% below where it was pre-pandemic in Q4 2019, revised from the previous estimate of 4.4% below. Other ONS data indicates … Continue reading “Economic Review September 2021”

Residential Property Review – September 2021

Signs of solidity in UK housing market After reaching record highs in June, the housing market is now ‘taking a breather‘, according to the Royal Institution of Chartered Surveyors’ (RICS) August survey. New buyer enquiries fell for a second consecutive month, with the latest net balance dropping to -14%. Despite this slip in demand, supply … Continue reading “Residential Property Review – September 2021”

Commercial Property Market Review – September 2021

Robust figures for commercial property market Commercial property investment volumes reached £31.4bn at the end of July, according to the most recent UK Commercial Market in Minutes report from Savills. This was 32% above the same period in 2020 and 4% higher than the five-year average. Savills also noted a promising rise in the three-month … Continue reading “Commercial Property Market Review – September 2021”

Tax hikes to raise money for social care

This month in a move designed to fund the spiralling cost of social care, the Government announced a controversial increase to National Insurance contributions (NICs) in the form of a 1.25% “Health and Social Care Levy”. Although pensioners do not pay NICs, workers of state pensionable age will have to pay the levy, which will … Continue reading “Tax hikes to raise money for social care”

The beginning of the end

Global Market Review Stimulus withdrawal creeps closer The US Federal Reserve (Fed) may start to reduce its stimulus measures sooner than expected if the US economy continues to make progress towards the central bank’s key goals of full employment and stable inflation. Nevertheless, Fed Chair Jerome Powell – speaking at the annual Jackson Hole Symposium … Continue reading “The beginning of the end”

Economic Review August 2021

Strong second quarter growth The latest gross domestic product (GDP) figures showed that the UK economy grew strongly in the second quarter, although more recent survey evidence does suggest the recovery is losing momentum. Data published by the Office for National Statistics (ONS) revealed the economy grew by 4.8% in the second quarter of this … Continue reading “Economic Review August 2021”

Five things to watch out for in the rest of 2021

The economic restart is well under way, with buoyant economic data emerging from most major economies. However, the world can only reopen once and we are entering the ‘post-restart’ era, with potentially slower growth. What do investors need to look out for in this new environment? Inflation running hot It’s the obvious choice, but it … Continue reading “Five things to watch out for in the rest of 2021”

Inflation falling? No-one is fooled

The latest inflation figures have no-one fooled. While CPI dropped back to the tidy level of 2%, most economists do not take it as a sign that inflationary pressures are over. Many have been quick to point out that there are myriad factors likely to push inflation higher for the remainder of the year. What’s … Continue reading “Inflation falling? No-one is fooled”