The infoshot to help kick-start your week
Last Week
- Chancellor Kwasi Kwarteng unveiled a slew of new policies as part of the new Government’s ‘growth plan’. Among the changes were a 1% reduction in the basic tax rate, and an abolition of the top tax band of 45%, as well as changes to corporation tax and stamp duty. Many argue however, that the measures are risky in an environment where public debt is already high and the cost of borrowing continues to rise.
- The BoE raised rates by 0.5% in its latest move to tame inflation and revive a falling Sterling, warning that the UK is already in recession. Financial markets had expected a more hawkish move of 75 basis points, but the MPC were split on the decision, with those in favour of a larger hike in the minority. Given that economists had priced in 200 basis points over the next 3 meetings, we could see two 75-point hikes as the next two decisions.
- Following the Chancellor’s tax cutting announcements, the Pound fell to a fresh 37-year low against the dollar. It fell more than 2% against the dollar, dropping below $1.10. Alongside this, the UK’s FTSE 100 index of major shares slid over 2%.
Market Pulse
Coming Up
- EU Consumer Price Index (Sep YoY) data released 30th September, predicted to come in at 9.6%, a 0.5% rise from the August data.
- UK GDP figures (YoY for end of Q2) released on 30th The YoY figure previously came in at 8.7% for the end of Q1.
Notice:
The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel
