Sharon Marson FPFS ACII SOLLA’s Post

Very little economic data from the UK this week to attract the attention. Perhaps the most headline grabbing release was... Discover this week's Ear to the Ground Update from Investment Manager, Paul Milburn -> https://lnkd.in/eRGZs7VY #investmentanalyst #economicoutlook #investments #inflation #usfederalreserve #economicdata

Welcome to Extreme Investor Network, where we bring you unique insights and valuable information about the stock market, trading, and all things Wall Street. Today, we are diving into the recent economic data coming out of the UK and its impact on the Bank of England's monetary policy. According to the Office for National Statistics, the services sector output in the UK increased by 0.7% #economy #Expanding #Forecast #surpasses

Whilst a lagging indicator, there was good news for the UK economy, expanding by 0.2% in August. Discover this week's Ear to the Ground Update from Investment Manager, Paul Milburn -> https://lnkd.in/eQVP2gUQ #investmentanalyst #economicoutlook #economicgrowth #investments #interest #inflation #economicdata

Although the UK economy recorded growth in February, is has remained fairly flat since the start of 2022. Speaking shortly before these figures were released, Kristina Hooper, Chief Global Market Strategist at Invesco, suggested the UK could be the first major Western economy to reduce interest rates. She said: “I believe the combination of a tepid economy and significant disinflationary progress means rate cuts can begin very soon. It seems markets are anticipating a cut in June, but I think we could see Bank rate cuts as early as the May Monetary Policy Committee (MPC) meeting.” Investment markets certainly took some confidence from the figures, and the FTSE ended the week up 1.1%, leaving it close to record territory. #economy #interestrates #markets

UK market rises on positive economic growth, but mixed performance elsewhere Our latest market bulletin "Week Watch" is now available to view online!   #finance #financialplanning #marketcommentary #vcpcweekwatch   https://lnkd.in/e7ATS_Mi

Weekwatch: Despite modest growth in February and revised January figures, challenges persist for the UK economy. Economists are cautiously optimistic about potential boosts from reduced National Insurance rates and speculate on early interest rate cuts. Market confidence, reflected in the FTSE's rise, is partly driven by Middle East tensions. However, US inflation challenges downward trends, delaying expected Federal Reserve actions. Thomas Farquhar of Heatio emphasizes the importance of swift decisions, hiring expertise, and realistic valuation in business growth. #UKeconomy #NationalInsurance #interestrates #FTSE #MiddleEast #inflation #FederalReserve #businessgrowth

LATEST GLOBAL ECONOMIC GROWTH BY KNIGHT FRANK! Global economic growth should hold steady at 3.2% in both 2024 and 2025 as inflation eases and central banks cut rates, according to a new set of forecasts from the IMF. The group expects growth to keep ticking along at 3.1% five years from now, which is mediocre compared to the pre-pandemic average but would surely be a positive outcome considering the myriad downside risks the global economy now faces. An escalation of regional conflicts, central banks holding monetary policy too tight for too long, a potential resurgence of financial market volatility that prompts disruption in sovereign debt markets, a deepening slowdown in China and a continued ratcheting up of protectionist policies all have the power to derail growth. The UK gets the largest upgrade of any G7 nation. Growth is projected to have accelerated to 1.1% in 2024, more than double the IMF's estimate of 0.5% growth from six months ago. The economy will expand another 1.5% in 2025 "as falling inflation interest rates stimulate domestic demand." The IMF's forecasts hinge largely on those produced by the Bank of England's Monetary Policy Committee, which in turn are underpinned by former chancellor Jeremy Hunt's fiscal plans. The outlook may shift notably from next week, when current chancellor Rachel Reeves delivers her Budget. Much has been said about tax-hikes, but this will be an expansionary budget, according to Pantheon Economics. Increased public spending will cancel out the tax rises and will result in a boost to GDP, however that will also ensure that the base rate will be between 0.25% and 0.5% higher than it otherwise would have been during the next financial year. Distortions Speculation over tax changes impacts property market activity, and right now the impact is significant. Buyers in prime property markets have opted to sit tight for more clarity from The Chancellor, particularly at higher price brackets - see Tom Bill's note from yesterday. The number of offers made on UK properties below £2 million fell 5% in the year to September. The drop extended to 18% above £5 million. IF YOU'RE LOOKING AT INVESTING INTO THE UK, FEEL FREE TO CONTACT ME AT ralph.west@apwproperty.co.uk #Sales | #Networking | #Technology | #Leadership | #Marketing

Client conversations have revolved around stagflation in the UK and how to find financial opportunities. For those who don’t know, stagflation is an economy suffering high inflation, high unemployment, and generally, a stagnant demand in its economy. Some argue that this sums up the UK at the moment, but we haven’t technically endured a #stagflation since the 1970s. Experts argue that 2024 could see a return to stagflation, however, but there are opportunities if you know where to look. UK equities, for example, are at the cheapest relative level to global equities in 10 years, which makes them an attractive #investment option. And while the economy is facing difficulties, the #FTSE 100 Index’s defensive qualities should still deliver less volatility for UK equities compared to global equities and the global economy. Overall, it’s usually best to have a balanced portfolio, but there are cheap #UK equity valuations currently available that could be capitalised on. So, even though stagflation may be on the horizon, there are still strong signs of potential from #UKequities.

It was a big week for the UK in terms of economic data being released. Although a lagging indicator... Discover this week's Ear to the Ground Update from Investment Manager, Paul Milburn -> https://lnkd.in/ewaV9aYF #investmentanalyst #economicoutlook #economicgrowth #investments #interest #inflation #monetarypolicycommitee #economicdata

It’s often said that economic figures and stock market performance don’t always line up. Last week, the UK provided a good example of this. #investing #economy #financeeducation