How healthy is the US economy? During the first half of 2019 the US economy grew by just over 2.5% in real terms, slightly ahead of typical estimates for the economy’s potential growth rate of 1.9%. At the same time, the labour market continued to create new jobs with the unemployment rate remaining low at
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Trade Wars Throughout 2019 the rhetoric between the US and China has become more hard line. On the face of it an impasse in trade talks leads to increased tariffs and slower economic growth as the Chinese have decided to take a firmer line in negotiations, reducing the chances of a deal. At some
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Global Summary Economists & Policymakers have cut 2019 global growth projections again. However, whilst there is no doubt an overall slowdown, it may well be that outright recession could possibly be avoided in the US and world economies. Consumer confidence and spending remains firm and we are seeing easing in US-China trade tensions, more flexible
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Current Situation December was another volatile month for markets across the world which continue to be affected by the current global economic environment. As the Brexit talks move through their final stages, the UK market was especially volatile, with the perceived balance of possible outcomes ever changing and causing wider than normal fluctuation in performance.
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It has no doubt not escaped your attention that the political agenda both in the UK and in the US has at times been febrile of late. Much like the weather here in the UK, the political climate has also been stormy and inclement. This has reflected in market volatility across all developed and
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The Dangers of Brexit Given the unprecedented nature of Brexit, many investors are becoming cautious in their approach, which possibly means they may be inclined to invest elsewhere, which is no doubt influenced by the noise of daily politics. Yet, the truth is that the Brexit uncertainty is well recognised, so while people are
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Today the base rate rose to its highest level since the financial crisis 10 years ago, with the Bank of England increasing it to 0.75%. All 9 members of the Monetary Policy Committee (MPC), chaired by Mark Carney, voted to raise the rate. This was widely expected by both the market and commentators, given that
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Stock-Market Volatility – February 2018 After a lengthy stretch of calm, stock market volatility has returned this week. On Monday, the Dow Jones index fell 1,175 points, the single largest one-day drop in history. This has affected the UK stock-markets also. The FTSE 100 has dropped over the last week, with six consecutive days of
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As we enter 2018 it is conceivable that the world’s leading economies will continue to display strength and resilience. The US economy is strong and the eurozone economies are improving along with an increase in global trade. This improvement among developed economies should also have a positive impact on the manufacturing economies of East Asia
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Current Position Inflation figures for June revealed an unexpected fall in the Consumer Prices Index (CPI) rate to 2.6% after seven months of rising rates and May’s high of 2.9%. Possibly, inflation is now at, or close to, its post-Brexit-vote peak, and an interest rate rise may not be forthcoming after all. The recent inflation dip
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