By Greg Smith on Monday, March 23rd, 2020
in Blog, Market Insights
GBP – Emergency measures from Treasury and BoE Until recently there has been little data to assess the economic impact of the coronavirus crisis. February data for China showed the extent of the impact with big falls in PMI data and exports, imports, industrial production and retail sales. This week, we will see the UK’s […]
By Greg Smith on Monday, March 16th, 2020
in Blog, Market Insights
GBP – Further response to Coronavirus This week, the focus remains on fiscal and monetary responses to the coronavirus crisis. Global equity markets plunged last week, while bond yields rose as investors sought the safety of cash. The BoE cut Bank Rate to 0.25% and introduced measures to support liquidity to the wider economy whilst […]
By Greg Smith on Monday, March 9th, 2020
in Blog, Market Insights
GBP – Tricky budget for Sunak The rebound in risk appetite rebound proved short-lived, as coronavirus concerns have continued to increase. The US Federal Reserve made an emergency 50bp rate cut. The markets now expect the Bank of England and the ECB to follow. Thus far, there is no coordinated global response despite worries about […]
By Greg Smith on Monday, March 2nd, 2020
in Blog, Market Insights
GBP – Coronavirus fears increase It has been a rough week for global equity markets with coronavirus fears continuing to rise. The reported cases are well above 80,000. Italy has the largest number of cases in Europe, while the UK total has been increasing. There is no consensus on when the outbreak is likely to […]
By Greg Smith on Monday, February 24th, 2020
in Blog, Market Insights
GBP – Parliament returns, coronavirus concerns Parliament returns to a busy agenda on Monday. One priority will be discussion of the immigration proposals. It was revealed as a points-based system for both the EU and the rest of the world. Meanwhile, it has been confirmed that the UK budget will go ahead on 11th March. […]
By Greg Smith on Monday, February 17th, 2020
in Blog, Market Insights
GBP – Stronger data expected Markets remain concerned about the disruption to supply chains due to the coronavirus outbreak in China. The February business data for the UK and the Eurozone may provide some indication of these. Growth forecasts for the first half of the year have been cut but with the assumption that any […]
By Greg Smith on Monday, February 10th, 2020
in Blog, Market Insights
GBP – GDP and Government reshuffle Risk sentiment has recovered despite further rises in coronavirus cases and deaths. The outbreak is likely to weigh on China’s economic growth this year. The wider impact is still uncertain with the UK looking at Brexit style contingency arrangements. Policymakers are keeping a close eye on developments, as further […]
By Greg Smith on Monday, February 3rd, 2020
in Blog, Market Insights
GBP – Bank of England held rates The Bank of England left interest rates on hold last week due to a pick up in growth since the election. The Monetary Policy Committee voted 7 to 2 in favour of no change, in line with the last two meetings. As it was a close call, sterling […]
By Greg Smith on Monday, January 27th, 2020
in Blog, Market Insights
GBP – Rate cut decision; EU exit It will be Mark Carney’s last MPC press conference as BoE Governor on Thursday. The decision on whether to cut rates or not is still finely balanced. The probability of a cut to 0.5% was as high as 75%. However, following the stronger employment and PMI surveys last […]
By Greg Smith on Monday, January 20th, 2020
in Blog, Market Insights
GBP – Rate cut expectations increase Over the last week the markets have shifted to expect a rate cut at the end of January. The chance has increased from 10% to around 70%. This has been caused by comments from BoE Governor Carney and two Monetary Policy Committee members. They were dovish enough […]
