The G7’s ‘Global Tax Plan’ for the G20 has come under intense scrutiny this week
Market Report 01-07-21 The G7’s “Global Tax Plan” being overseen by the Office for Economic Co-operation and Development (OECD) for the G20 has come under intense scrutiny this week. The OECD/G20 Inclusive Framework on BEPS (Base Erosion Profit Shifting) was established in 2016, with the aim of addressing base erosion and profit shifting that has […]
Positive sentiment in the European market has rolled into this week
William John assesses Western & Eastern equity markets, the U.K. housing market and a prominent listing from the private equity industry in London.
Bank of England’s Monetary Policy Committee – Monetary policy remained appropriate
Market Report 25-06-21 On Thursday, the Bank of England’s Monetary Policy Committee assessed that “the existing stance of monetary policy remained appropriate” to meet its 2% inflation target over the medium term. The Monetary Policy Committee unanimously voted to keep its Bank Rate at 0.1% – likely sustaining low commercial interest rates for the foreseeable […]
IHS Markit released its Purchasing Managers’ Index (PMI) for the Eurozone economy
Market Report 24-06-21 Yesterday, IHS Markit released its Purchasing Managers’ Index (PMI) for the Eurozone economy. Collecting data from 11/06 until 22/06, Eurozone business activity grew at its fastest rate for 15 years in June according to the preliminary ‘flash’ reading. The IHS Markit Eurozone Composite PMI is a weighted average of the following five […]
EU’s Next Generation EU programme financing launched last week
The European Commission bans certain banks from engaging in bond syndication over historic antitrust breaches, William John provides an analysis.
Federal Reserve amends projections for first Federal Funds adjustment in post-pandemic era
Market Report 18-06-21 The Federal Reserve has amended its projections for its first Federal Funds rate adjustment in a post-pandemic era. Current rates, between 0 and 0.25%, were expected to hold until at least 2024 as the U.S. economy recovers from its worst recession since the Financial Crisis. However, according to a statement issued by […]
According to US Bureau of Labour Statistics Consumer Price Index rose 5.0% in May
Market Report 11-06-21 All eyes are on the U.S. inflation data that was released yesterday. According to the U.S. Bureau of Labour Statistics, the Consumer Price Index (CPI) rose 5.0% in May, year on year. This was the largest 12 month increase in the CPI since August 2008. Meanwhile, “core inflation” which measures the percentage […]
European Union’s “NextGenerationEU” recovery plan from the impact of COVID-19
Market Report 10-06-21 In Europe, the European Commission is preparing to launch its biggest ever borrowing programme to help finance the European Union’s “NextGenerationEU” recovery plan from the impact of the COVID-19 pandemic. The European Commission is looking to raise up to €800 billion by 2026 using a variety of debt financing strategies including the sale […]
Are Special Purpose Acquisition Companies (“SPACs”) the future
Market Report 09-06-21 Are Special Purpose Acquisition Companies (“SPACs”) the future for the transition from private to public? SPACs fall under the umbrella term of “blank check” companies. A blank check company is a public company that uses the capital raised from its own initial public offering (IPO) to acquire an unidentified business without a […]
UK mortgage lending fallen below £5.7 billion monthly average borrowed in 6 months
Market Report 05-06-21 Despite a rapid surge in house prices across the U.K., fuelled primarily by a stamp duty tax holiday and a pandemic-induced shift in housing preferences, U.K. mortgage lending has fallen below the £5.7 billion monthly average borrowed in the six months to February 2021 standing at £3.3 billion for April 2021. Notably, […]
Is the time of the “60/40” portfolio over as it comes under major scrutiny
Market Report 03-06-21 Is the time of the “60/40” portfolio over? The traditional portfolio, comprised of 60% equities and 40% bonds, has come under major scrutiny in a “twin-bull” market whereby both asset classes have seen historically impressive gains on major indices and depressed yields. Since circa 2000, U.S. equities and U.S. treasuries have been […]
UK house prices have climbed to highest level across the UK since October 2014
Market Report 26-05-21 As the world reels from a COVID-19 induced recession, U.K. house prices have climbed to their highest level across the U.K. since October 2014, according to statistics released by the Office for National Statistics. The early slump in the graph exhibits the propagational effects of the Financial Crisis from 2006 -2009 and […]
Cryptocurrency sees regulatory scrutiny and crackdown on retail trading
Market Report 20-05-21 Investors have been playing close attention to the cryptocurrency markets this week as regulatory scrutiny and a crackdown on retail speculative trading intensifies. Since the “WallStreetBets-GameStop” debacle, there is no surprise to see regulators pay closer attention to the basket of decentralised currencies including established names like Bitcoin, Ethereum and Ripple as […]
Worldwide equities have lost their post-pandemic momentum this week
Market Report 18-05-21 Amidst inflation worries, worldwide equities have lost their post-pandemic momentum this week. The S&P 500, a stock index composed of the largest 500 companies weighted by market capitalisation on U.S. stock markets, fell 0.606% from Friday’s close in early morning trading on Monday: Europe’s STOXX 600 and Britain’s FTSE 100 saw similar […]
Treasury’s notable fiscal support schemes during the Covid-19 era sees payoff
Market Report 14-05-21 The Treasury’s notable fiscal support schemes during the Covid-19 era this week saw their payoff. According to Companies House, the fourth quarter of 2020 saw a 29.4% increase in incorporated companies compared with the same quarter of 2019 – the largest Q4 year on year increase since 2012. The growth points to […]