By Greg Smith on Monday, August 3rd, 2020
in Blog, Market Insights
GBP – Short-term rebound will stay BoE On Thursday, the Bank of England announces its latest monetary policy decision. The economic outlook if extremely uncertain, though we have seen a recent short-term rebound. Chief Economist Andy Haldane described this rebound as “so far, so V”. The view of the bank beyond this short-term rebound will […]
By Greg Smith on Monday, July 27th, 2020
in Blog, Market Insights
GBP – PMIs above 50 Concerns over the impact of Covid on the US economy along with US-China relations have had a negative impact on equity markets. This has seen the dollar fall, with sterling rising as a consequence despite ongoing uncertainty about the progress of talks with the EU. Last week we saw much […]
By Greg Smith on Monday, July 20th, 2020
in Blog, Market Insights
GBP – GDP weaker than expected Last week’s 1.8% monthly rise for GDP was well below expectations. This subdued pace was mainly due to services only rising by 0.9% as much of the sector remained in lockdown. Meanwhile, construction and manufacturing both rose by over 8%. With the further easing of restrictions in June and […]
By Greg Smith on Monday, July 13th, 2020
in Blog, Market Insights
GBP – Economic update announced Last week, Chancellor Rishi Sunak’s Summer gave his Economic Update outlining the next phase of his plan. There was a focus on jobs, with a job retention bonus for furloughed employees kept on at work. There was also a kickstart scheme for 16-24 year-olds and measures for hospitality, a reduction […]
By Greg Smith on Monday, July 6th, 2020
in Blog, Market Insights
GBP – Chancellor Sunak update Last week, Boris Johnson said that policy focus will be on stimulating economic growth. He has said there would be no return to austerity despite the increase in the budget deficit. Chancellor of the Exchequer Rishi Sunak will update the House of Commons on the economic outlook this week. There […]
By Greg Smith on Monday, June 29th, 2020
in Blog, Market Insights
GBP – UK PMI improved Last week, several economic indicators suggested the near-term rebound could be stronger than previously thought. The purchasing managers’ index surveys for June beat expectations. Only the manufacturing PMIs reached 50.1, showing growth in the sector. The services PMI improved to 47.0, pointing to a likely return to economic growth in […]
By Greg Smith on Monday, June 22nd, 2020
in Blog, Market Insights
GBP – BoE increase purchases, reduce speed Last week, the Bank of England’s announced a further £100bn of asset purchases. There was some disappointment in the market that the QE increase wasn’t even larger. Sterling dropped as a result of the lower amount of stimulus, with the BoE reducing the pace of its purchases. There […]
By Greg Smith on Monday, June 15th, 2020
in Blog, Market Insights
GBP – BoE to increase QE The Bank of England (BoE) meets this week, with expectations of no further changes to rates, at 0.1%. Recent comments from MPC members suggest that may increase the £645bn limit on asset purchases. This limit is likely to be reached in July, and the committee will likely increase the […]
By Greg Smith on Monday, June 8th, 2020
in Blog, Market Insights
GBP – Major GDP fall The manufacturing and services PMIs for May were revised up, whilst construction rebounded to 28.9. These numbers represent an improvement, but all three stayed below the 50 level which signifies growth. The latest Chinese PMI readings were all above the 50 expansion level for May. Equities have surged as markets […]
By Greg Smith on Monday, June 1st, 2020
in Blog, Market Insights
GBP – Final UK-EU talks The final round of UK-EU talks is due to take place this week before the end of June extension deadline. David Frost will discuss the future relationship with the EU’s Michel Barnier. The deadline to extend the transition period beyond 31 December is the end of June. The UK has […]
