Financial & Investment News

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Markets have rallied on the signs that borrowing costs have peaked.

Despite Jerome Powell, the US Federal Reserve Chairman saying that ‘price rises still need to be kept under control’ the Federal Open Markets Committee held US interest rates at 5.25- 5.5% range in their November meeting. The US economy has…

Joe Bidens economy is booming?

In Q3, the US posted GDP growth figures of 4.9%. This was way above any other major developed country. This was a remarkable growth figure given the rates of inflation, interest rates and economic outlook. The third quarter growth was…

As interest rates start to fall, government bonds will provide attractive returns.

Over the past three years, we have witnessed significant volatility in bond prices as central banks flooded the global economy with cash to pay for a Covid recovery. The peak of the loose monetary policy saw US$11tn of sovereign debt…

UK interest rates are expected to start to fall from May next year.

The BoE Chief Economist Huw Pill has hinted that ‘it is not unreasonable’ to predict a rate cut next summer. This is the clearest signal yet that the BoE is at the peak of interest rate rises. Financial markets are…

Inflation is expected to progress towards 2% in both Europe and USA.

The governments of the developed world are being held back by the crushing responsibility of repaying huge debt piles at elevated interest rates. This debt has been accelerated in the past 15 years through the buying out of banks in…

The earliest date for a Fed rate cut is May and will prompt a change in asset returns.

GDP growth in the US continued to surprise on the upside while inflation maintained its steady decline. The resilience of consumers in both the US and UK has meant that the ECB, Fed, and BoE have been cautious about their…

There has been a strong value bias over the past 18 months but this is starting to swing back to growth.

Equity markets started 2023 with a recovery in tech stocks pushing US equities to the best January performance in 20 years. Stocks were lifted by positive sentiment over the opening of China and economic activity that appeared to reduce the…

UK Chancellor of The Exchequer Jeremy Hunt

If the BoE do not control inflation, a recession will occur anyway.

Headline CPI inflation fell from 10.1% in March to 8.7% in April, but this fall was less than the BoE had expected. Meanwhile the figures for core inflation which exclude the currently expensive heating and food costs which are considered…

European equities have rallied strongly in recent months.

We are now over 12 months on from the commodity price jumps that followed Russia’s invasion of Ukraine. Due to this there was a big drop in European headline inflation from 8.5% to 6.9% in March. European inflation has lagged…