{"id":1938,"date":"2021-09-27T11:10:05","date_gmt":"2021-09-27T10:10:05","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=1938"},"modified":"2022-07-05T14:10:06","modified_gmt":"2022-07-05T13:10:06","slug":"news-in-review-22","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2021\/09\/27\/news-in-review-22\/","title":{"rendered":"News in Review"},"content":{"rendered":"
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\u2018Against a\nbackdrop of robust goods demand and continuing supply constraints, global\ninflationary pressures have remained strong\u2019<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

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In a unanimous decision,\nthe Bank of England (BoE) Monetary Policy Committee (MPC) voted to maintain Bank\nRate at its record low of 0.1% last week. The vote came as the supply chain\ncrisis, largely driven by an ongoing shortage of heavy goods vehicle (HGV)\ndrivers, shows signs of holding back economic recovery. <\/strong><\/strong><\/p>\n<\/div>\n\n

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This certainly seems to be borne out by the MPC\u2019s latest forecast, which\nhas revised expectations for Q3 growth down by 1% compared with its August\nprojections. The Monetary Policy Summary of September outlined, \u2018<\/em>Since the\nAugust MPC meeting, the pace of recovery of global activity has showed signs of\nslowing. Against a backdrop of robust goods demand and continuing supply constraints,\nglobal inflationary pressures have remained strong and there are some signs\nthat cost pressures may prove more persistent.\u2019<\/em><\/p>\n<\/div>\n\n

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The BoE also projected that inflation would reach above 4% in the final\nquarter of 2021, twice the target level of 2%, \u2018owing largely to\ndevelopments in energy and goods prices<\/em>.\u2019 Soaring gas prices have so far\ncaused nine suppliers to go bust this year, affecting nearly two million households.\nHowever, the MPC maintained its position that many of the factors driving\ncurrent inflation levels will prove transitory, with inflation falling back to\nclose to the 2% target over the medium term.<\/p>\n<\/div>\n\n

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Expected to be addressed in the MPC\u2019s November report is the end of the\nfurlough scheme on 30 September and its impact on the labour market and\neconomic recovery. <\/p>\n<\/div>\n\n

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US economy defies rise in Delta cases<\/strong><\/strong><\/p>\n<\/div>\n\n

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Rising COVID infections across the United\nStates, attributed to the Delta variant of the virus, have not hindered\neconomic recovery, it seems. This is according to the US Federal Reserve, which\nsaid the labour market was recovering and high levels of inflation – currently\nat 5.3% – will prove temporary. It said it may start cutting back on emergency\neconomic support \u2018soon<\/em>,\u2019 but did not specify further. <\/p>\n<\/div>\n\n

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The country has not been unaffected,\nhowever; the Federal Open Market Committee, responsible for setting US monetary\npolicy, commented that increased cases were slowing the pace of recovery. <\/p>\n<\/div>\n\n

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The US Central Bank remains cautious in its\napproach, stating that monetary policy and the course of the economy still\ndepended largely \u2018on the course of the virus<\/em>.\u2019 <\/p>\n<\/div>\n\n

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London\n\u2013 an investment powerhouse<\/strong><\/strong><\/p>\n<\/div>\n\n

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Five\nyears after the referendum results set the UK on the path to Brexit, the City\nof London still holds the lion\u2019s share of the European investment management\nmarket, according to a new report from the Investment Association. Its data\nreveals that London holds a massive 37% market share \u2013 larger than Paris (18%),\nFrankfurt (10%) and Zurich (8%) combined. <\/p>\n<\/div>\n\n

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The\nworld\u2019s second largest investment centre after the United States, the UK also\nremains an attractive hub for overseas investment. The report shows that\noverseas clients accounted for 44% of total assets under management in the UK,\nor \u00a34.2trn, as of the end of 2020. <\/p>\n<\/div>\n\n

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In\na year marked by economic turmoil, total funds under management for UK\ninvestors nevertheless rose by 11% year-on-year to stand at \u00a31.4trn.  <\/p>\n<\/div>\n\n

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Market update <\/strong><\/p>\n<\/div>\n\n

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After a frenetic weekend in the UK, where\nthe spiralling petrol crisis forced the government\nto suspend competition law to help oil companies work together to deliver fuel\nto petrol stations, the FTSE 100 held onto\ngains on Monday, as it benefited from a strong session for major oil stocks. On Tuesday, the FTSE 100 fell back as energy\nprices continued to soar, with the price of oil reaching a three-year high,\nstoking concerns that supply chain problems may prompt a slowdown in economic\nactivity.<\/p>\n<\/div>\n\n

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German election news<\/strong><\/p>\n<\/div>\n\n

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Preliminary\nresults show the Social Democratic Party (SPD) claimed a narrow\nvictory in the German election at the weekend. The verdict means\nthat a coalition will need to be formed, with negotiations potentially taking\nmonths. With Germany taking over leadership of the G7 in January, the\nmain parties want a new government in place by the end of the year. In the\nmeantime, Angela Merkel will remain Chancellor.<\/p>\n<\/div>\n\n

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

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Financial advice is\nkey, so please do not hesitate to get in contact with any questions or concerns\nyou may have.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

\u2018Against a backdrop of robust goods demand and continuing supply constraints, global inflationary pressures have remained strong\u2019 In a unanimous decision, the Bank of England (BoE) Monetary Policy Committee (MPC) voted to maintain Bank Rate at its record low of 0.1% last week. The vote came as the supply chain crisis, largely driven by an […]<\/p>\n","protected":false},"author":15,"featured_media":1939,"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\/1938"}],"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\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=1938"}],"version-history":[{"count":2,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/1938\/revisions"}],"predecessor-version":[{"id":1941,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/1938\/revisions\/1941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/1939"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=1938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=1938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=1938"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=1938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}