TENS OF THOUSANDS TURN OUT TO PAY LAST RESPECTS TO QUEEN ELIZABETH II
This week the nation continues to mourn the passing of Queen Elizabeth II. In a fitting tribute, the British public has chosen to honour one treasured national institution with another, a queue.
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END OF AN ERA AS THE UK MOURNS THE DEATH OF QUEEN ELIZABETH II
This week all other news was overshadowed by the sad passing of Queen Elizabeth II. In a reign marked by periods of turmoil and hostility, rapid change and often amazing progress, the queen was more than a head of state but a source of stability, perhaps unnoticed until its absence.
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GOVERNMENT BONDS UNDER PRESSURE AS PUBS WARN OF LAST ORDERS WITHOUT ASSISTANCE
This week the sell-off in government bonds continued on the back of not much more than a change in sentiment. The outlook hasn’t really altered but investors are expecting both inflation and interest rates to remain higher for longer. The UK is likely to see a more severe downturn than other developed markets.
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UK INFLATION SQUEEZING CONSUMERS AND BUSINESSES THOUGH TRUSS’ FOCUS LIES ELSEWHERE
This week the inexplicably drawn-out conservative party leadership election carried on with yet more hustings generating yet more policy ideas that the market at least has to consider taking seriously.
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DIVERGNCE IN INFLATION DRIVERS BETWEEN THE UK AND US PRESENTS A DIFFERENT SET OF PROBLEMS
This week the UK continued to scorch in hot weather which resulted in drought warnings and hosepipe bans. The UK economy cooled and reported the first quarterly fall in growth for a year contracting 0.1% for the second quarter.
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BLEAK OUTLOOK FROM THE BANK OF ENGLAND INCREASES PROBLEMS FOR NEXT PM
This week we heard the Bank of England forecast a deep recession, runaway inflation and the standard of living being eroded at an alarming rate. In January the bank was predicting inflation of more than 6% and saying gradual interest rate rises would be able tame inflation and sidestep a recession.
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US FED RATE HIKE SEES EQUITIES AND GOVERNMENT BONDS RALLY AS OUTLOOK DETERIORATES
This week we saw the US enter a recession that is not yet a recession. US GDP unexpectedly shrank in the second quarter by 0.9%, after falling 1.6% in the first three months of the year.
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INFLATION TAKES CENTRE STAGE ONCE MORE AS TORY LEADERSHIP RACE ENTERS THE FINAL LEG
This week the main story in markets has been inflation as the European Central Bank increased interest rates for the first time in 11 years and CPI in the UK rose again.
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BOND MARKETS REMAIN CALM DESPITE SPECULATION THE US FED MAY HIKE BY 1%
This week we saw US CPI exceed expectations (again) while there was a surprise increase in UK GDP in May. The US Fed will be concerned that inflation is not confined to areas such as food and energy but it may take some comfort from the continued decline in commodity prices.
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OND MARKETS REMAIN UNCONVINCED BY CENTRAL BANKS’ DECLARATION OF THE END OF LOW RATES
This week we learned that the end is nigh, or at least the era of rock bottom interest rates and sub-2% inflation is apparently at an end.
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