Ear to the Ground
The US Federal Reserve Chair Jerome Powell took markets by surprise at the Jackson Hole Symposium last week. Many market commentators had been expecting him to deliver something of a pivotal moment. A softer stance on monetary policy tightening, in particular interest rate hikes, was envisaged given the softer economic data coming through and fears of a recession.
Monthly Update 31/08/2022
Monthly Update31 August 2022 The Fund posted a return of 1.17% for August, outperforming the sector average return of 0.52% due to strong underlying fund performance. It was a difficult month for equity markets in general, with most of the major indices posting negative returns in local currency terms. With economic growth slowing, concerns increased […]
Ear to the Ground
The latest inflation forecast for the UK from Citi took the market by surprise this week. Updated for a further rally in gas and electricity prices, they believe that a further upside shift in inflation is highly probable and that CPI could peak at over 18% in January. This is some way above the 13.3% predicted by the Bank of England in their latest report.
Ear to the Ground
Droughts, blackouts and potentially an inflation top out. With the UK and Europe in the midst of another heatwave we are hearing of more hose pipe bans and of reservoirs drying up. In Europe the shortage has the potential to become the regions next big enemy.
Ear to the Ground
This week was always going to be about the Bank of England and it indeed proved to be the case. The market fully expected that the Monetary Policy Committee (MPC) would raise rates by 0.5% to 1.75% and they delivered accordingly. This was the largest increase seen in 27 years. This move was supported by eight of the nine committee members…
Monthly Update 31/07/2022
Monthly Update31 July 2022 After a difficult year to date, UK fixed income enjoyed a stronger July in terms of performance. High inflation remains a concern from central banks globally, including the Bank of England. There was a much anticipated 0.5% hike in the base rate for the beginning of August and this was duly […]
Ear to the Ground
Something we might be a little bit more reticent to bring home however is the nation’s favourite cheeseburger, after McDonalds announced last week that it will see its first price increase in over 14 years. It wasn’t just a small increase either, with a 20% hike being imposed. The company is also to pass on the cost of higher fuel and ingredients onto other items on their menu.
Ear to the Ground
It ain’t half hot! In a week which saw record temperatures in the UK, it wasn’t just the weather which had us all a lot hot under the collar. UK inflation figures revealed that CPI had increased to 9.4% in June, the highest reading since 1982 and marginally above market forecasts of 9.3%. It is perhaps unsurprising to hear that fuel and food were the largest contributors to the increase.
Ear to the Ground
What goes up, must come down. But not quite yet! US inflation again surprised to the upside this week, with the release for June coming out at an eye watering 9.1%. This was up from 8.6% in May, above market forecasts of 8.8% and the highest reading since…
Ear to the Ground
Politics have certainly been at the top of the agenda this week, with the resignation of Boris Johnson being the focal point. As should probably be expected, however, the investment market response has been fairly muted. There was some sign of sterling strength following the announcement but markets soon reverted to business as usual.
