True Potential Morning Markets

As we look to the week ahead, Kevin Kidney, Head of asset allocation, looks at the inflation focused events from major economies as Q2 comes to a close. The US Federal Reserve is releasing the core inflation print and market expectations are at around 2.6% which puts it ahead of target. In the Eurozone we get data from France, Spain and Italy as well as the UK where the general theme appears to be cooling price pressures with some areas of sticky inflation. In addition, the data from the Bank of Canada, the first major economy to lower interest rates is expected to remain below target giving room for further future cuts. 

The focus for today is the UK as Kevin Kidney, Head of Asset Allocation and Paul Durrans, Investment Director, look at the Bank of England’s decision to maintain the current interest rate of 5.25% and the economic factors as to why. Also they take a look into the surprisingly positive UK retail sales data as consumer confidence is building with stronger real wage growth and how that compares to a slowing consumption in the US.

Today, Kevin Kidney, Head of Asset Allocation, covers the exceptional strength of the US equity market with new highs driven by Nvidia which has overtaken Microsoft to become the world’s most valuable company. Also, with global core inflation falling, is it time for policy makers to be forward thinking and lower interest rates?

Headline Inflation has finally reached the Bank of England's 2% target, but Core remains above target. George Bell, Portfolio Manager asks the question, if inflation targets have been hit when will see interest rate cuts?

With the release of Eurozone's wage growth figures, Chris Leyland, Director of Investment Strategy, discusses how wages are ahead of inflation, meaning that individuals can afford to spend and consume. Why is this important for investors? An increase in spending could boost the eurozone economy.

Today Jeff Casson, Chief Investment Officer previews the week ahead in investments, focusing on Thursday's interest rate decision by the Bank Of England. Jeff also dissects retail data coming out of the US, plus interest rate data from China, and what that means for your money.

This week Kevin Kidney (Investment Director) and Matt Henderson (Portfolio Manager) discuss the latest UK economic data and if this presents any issues for the next Government. Additionally, the pair review the latest inflation news coming out of the US, and why the US central bank take this into account when making its next interest rate decision.

#investing #interestrates #economy #uk #jobs #election #inflationimpact

Yesterday financial markets received two major announcements from the US - the country’s inflation report and the Federal Reserve’s interest rate decision. Matt Henderson, Portfolio Manager, explains the details of these announcements and looks at what impact they could have on markets.

The upcoming general election is at the forefront for both investors and voters right now, with manifestos being released this week. Paul Durrans, Investment Director, looks at the current economy, including wages and inflation and how current economic activity suggests a problematic landscape for all political parties.

The latest reading from UK employment data shows that wage growth remains strong and is currently growing at a rate above inflation. George Bell, Portfolio Manager, examines what this means for the labour market and what repercussions data like this can have on the Bank of England’s inflation target and the upcoming general election.