Targeting Pricing Power

UK Inflation has jumped to a decade high, hitting 4.2% in October. These prices rises have been widely predicted by, among others, the Bank of England and the Office for Budget Responsibility. This is uncomfortable for consumers, who are facing vastly increased costs on everything from car hire (up 30%) to air fares (up 28%) … Continue reading “Targeting Pricing Power”

Higher inflation for longer

Global Market Review Intensifying inflationary pressures The International Monetary Fund (IMF) warned that the world is facing inflationary pressures that will be “higher and longer than expected”. During October, US Federal Reserve Chair Jerome Powell commented: “We now see higher inflation and the bottlenecks lasting well into next year … I do think it’s time … Continue reading “Higher inflation for longer”

Three reasons why markets may slide

Having looked at the bull case for stock markets,  it is worth examining the bear case. There are structural forces conspiring against equities today, from slowing growth, to high valuations to rising interest rates. We look at why these elements may prove to be the final straw for the lengthy bull run in global share … Continue reading “Three reasons why markets may slide”

Economic Review October 2021

OBR forecasts stronger growth The Office for Budget Responsibility (OBR) has upgraded its UK economic growth forecast and is now predicting the economy will return to its pre-pandemic level six months earlier than previously expected. Chancellor Rishi Sunak unveiled the independent forecaster’s revised projections during his Budget statement delivered to the House of Commons on … Continue reading “Economic Review October 2021”

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”

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”