{"id":1430,"date":"2021-08-11T12:47:02","date_gmt":"2021-08-11T11:47:02","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=1430"},"modified":"2022-07-05T14:11:07","modified_gmt":"2022-07-05T13:11:07","slug":"news-in-review-15","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/08\/11\/news-in-review-15\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u2018<\/em><\/strong>It\u2019s time we recognised the\nquality that other countries see in the UK<\/em><\/strong>\u2019<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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In an open letter to UK institutional\ninvestors last week, Boris Johnson and Rishi Sunak <\/strong>urged pension\nschemes to invest more of savers\u2019 money into UK assets, to help drive the\neconomic recovery and boost long-term growth prospects. They <\/strong>believe the country needs an \u2018investment\nbig bang\u2019<\/em> to unlock \u2018hundreds of billions of pounds\u2019 <\/em>sat in schemes,\nand that UK institutional investors should\ninvest a greater proportion of their capital in UK assets, such as\ninfrastructure and pioneering firms. <\/strong><\/strong><\/p>\n<\/div>\n\n

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In the letter, which comes ahead of an Investment\nSummit at Downing Street in October, Sunak and Johnson highlighted that UK\ninvestors are currently under-represented in owning these assets, whilst some\nof the world\u2019s largest pension funds, including\nfrom Australia and Canada, have benefited from the opportunities that UK\nlong-term investments afford.They wrote,\n\u2018It\u2019s time we recognised the quality that other countries see in the\nUK, and back ourselves by investing more money into the companies and\ninfrastructure that will drive growth and prosperity across our country\u2026 we\nwant to see UK pension savers benefiting from the fruits of UK ingenuity and\nenterprise, being given the opportunity to back British success stories, and\nsecure higher returns and better retirements.\u2019<\/em><\/strong><\/p>\n<\/div>\n\n

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MPC maintain\npolicy<\/strong><\/p>\n<\/div>\n\n

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Last Thursday, the\nBank of England\u2019s Monetary Policy Committee (MPC) voted in favour of\nmaintaining monetary policy, keeping Bank Rate unchanged at 0.1% and bond\nbuying at current levels. Just one member of the eight-person Committee, voted to end the bond buying\nprogramme early. <\/p>\n<\/div>\n\n

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In\nhis accompanying economic outlook, Governor of the Bank of England, Andrew Bailey, spoke about\nthe big news story \u2013 inflation. The Bank expects inflation to peak at 4% in Q4 and Q1 2022, before\nfalling back to around 2.5% at the end of next year, returning to target in H2\n2023. The prices of traded goods have contributed to the surge in inflation,\nreflecting several developments including oil prices, supply bottlenecks and a\nglobal upturn in the prices of basic commodities. Bailey concluded, \u201cThe\nMPC\u2019s view is that there are good reasons to suggest that above-target\ninflation will be temporary. But if this outlook appears to be in jeopardy, the\nMPC will not hesitate to act.\u201d<\/em><\/p>\n<\/div>\n\n

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The Bank\nexpects UK GDP to have risen \u2018slightly\u2019<\/em> faster than expected in Q2,\noffset by slowing momentum in Q3, \u2018as suggested by higher-frequency\nindicators of card spending, consumer confidence and mobility, which have\neither levelled off or fallen slightly in recent weeks.\u2019<\/em> Consequently, UK\nGDP is still expected to grow by 7.25% this year, followed by growth of 6% next\nyear.<\/p>\n<\/div>\n\n

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Sterling\nextends gains against euro<\/strong><\/p>\n<\/div>\n\n

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In\nrecent weeks, sterling has performed strongly, as confidence gathers\nsurrounding high vaccination rates, easing restrictions and although still\nelevated, declining virus cases. On Tuesday, sterling extended gains to hit its\nstrongest level against the euro since February last year.<\/p>\n<\/div>\n\n

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US\nindices reach highs on positive jobs data<\/strong><\/p>\n<\/div>\n\n

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Across\nthe pond, better than expected jobs data boosted markets at the end of last\nweek. The labour\nmarket in the world’s largest economy remains firmly in recovery mode,\nregistering the seventh consecutive month of  jobs expansion<\/a>. Nonfarm payroll employment rose\nby 943,000 in July, far outstripping the 870,000 jobs expected in a Reuters\nsurvey of economists. The unemployment rate dipped to 5.4% from 5.9%, also\nbeating the median estimate of 5.7%. On Tuesday, the Senate voted to approve a\n$1trn infrastructure bill. <\/p>\n<\/div>\n\n

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Cautious\noptimism for home markets  <\/strong><\/strong><\/p>\n<\/div>\n\n

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At\nhome, cautious optimism appears to be outweighing concern about rising Delta\nvariant rates in Asia and to a lesser extent in the US, resulting in another\nrecord high for the domestically focused FTSE 250. <\/p>\n<\/div>\n\n

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China’s export growth slows<\/strong><\/p>\n<\/div>\n\n

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New coronavirus infections in\nJuly have resulted in authorities in many Chinese cities imposing lockdown on affected\ncommunities, ordering millions to be tested and suspending some business\nactivity, including factory work. This has resulted in an unexpected slowdown\nin export growth \u2013 exports in July rose 19.3% year-on-year, compared to a 32.2%\ngain in June \u2013 analysts polled by Reuters had forecast a gain of 20.8% for the\nmonth. <\/p>\n<\/div>\n\n

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Here to help<\/strong><\/p>\n<\/div>\n\n

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Financial advice is key, so please\ndo not hesitate to get in contact with any questions or concerns you may have.<\/p>\n<\/div>\n\n

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The value of\ninvestments can go down as well as up and you may not get back the full amount\nyou invested. The past is not a guide to future performance and past performance\nmay not necessarily be repeated.<\/strong><\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u2018It\u2019s time we recognised the quality that other countries see in the UK\u2019 In an open letter to UK institutional investors last week, Boris Johnson and Rishi Sunak urged pension schemes to invest more of savers\u2019 money into UK assets, to help drive the economic recovery and boost long-term growth prospects. They believe the country needs […]<\/p>\n","protected":false},"author":12,"featured_media":1431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,112],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/1430"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=1430"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/1430\/revisions"}],"predecessor-version":[{"id":1432,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/1430\/revisions\/1432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/1431"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=1430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=1430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=1430"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=1430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}