A pre-Christmas snapshot of the economy and markets
Well, whilst I anticipate another eshot just before the festivities, it seems apt to wish everyone a very Happy Christmas season, celebrations and relaxing times. The new government will be looking forward to some rest and apt navel gazing over the break.
I am sure we shall all be wondering what might ensue from Syria...
Interest rates remain static – will this affect you?
Interest rates are set to remain at 5% until after the Government’s Budget at the end of October.
The Bank of England confirmed on Thursday (September 19) the rate would remain static, with inflation remaining stubbornly at 2.2% and above the ‘magic’ 2% target.
At its latest meeting, the bank’s Monetary Policy Committee (MPC) voted by...
UK shares, Budget and what’s next?
Good news in that the Bill about Investment Trust charges’ reporting is very much back on parliamentary agenda. Readers might recall the Election stymied the last attempt. Success would be a very useful outcome for holders of these investment vehicles and see reductions in discounts to asset values as well as open new investment...
Consumer confidence
‘Consumer Confidence’ has risen for the third month and now at a two-year high, regardless of what negativity you may hear in the media. This seems to be supported by buoyant consumer spending since last autumn as well.
It’s good, as it will reflect in economic output but will too much enthusiasm dampen the Chancellor’s...
Inflation drops more than expected for New Year
Inflation has fallen more sharply and sooner than expected, as 2023 gives way to 2024.
It fell to 3.9% in the year to November, dropping more than anticipated from 4.9% in October, according to the latest data from the Office for National Statistics (ONS).
Consumer prices index (CPI) inflation has now fallen by nearly 7%, having...
‘Goldilocks’ economy is proving elusive
July saw a ½% slip in our economy, partly to do with the lack of productivity from strikes and partly the weather affecting things like construction. Sterling has been weak too – partly too as a consequence of the expectation that interest rate rises to stem inflation (which is falling dramatically) have come to...
Is inflation deflating? And is your adviser clued up?
Inflation is coming-down – only 6.8% and for the first time since 2021, lower than the increase in average pay (including bonuses etc). Food inflation is dropping even faster. Some of the reasons are ‘pigs in pythons’ – when a big increase a year ago drops-out of the figures.
The next big hit will be...
House prices drop as interest rates increase
House prices have dropped by the biggest yearly decline for 14 years, according to Nationwide.
The data for July was shortly before the Bank of England increased interest rates yet again, taking it from 5% to 5.25%, spelling more uncertainty for mortgage holders.
The BBC has reported the latest from Nationwide, which said affordability was becoming...
Rising rates, what we look for and dubious practices
So, credit agencies have downgraded the US for its financial stability and the market there has taken a turn downwards. What does it mean? Of course we shall be assessing that as we do our utmost to manage clients’ investments wisely and their financial affairs. However, it’s a blow for Mr Biden’s hopes for...