The honeymoon will soon end for Donald Trump and markets’ unbridled optimism will follow it January 20, 2017 American Presidents enjoy a honeymoon period. It begins with their victory speech and ends a few weeks after their inauguration. It is hard to imagine much of a grace period for a personality as incendiary as Donald Trump, who is inaugurated today, or that investors' euphoria towards his economic policies can last. The Trump trade [...]
Britain’s investors have a responsibility to help close society’s divides January 20, 2017 I feel a touch fortunate that my Davos debut has come during such a fascinating period of change. The World Economic Forum’s annual gathering in Switzerland, which ends today, has long opined on the state of political, social and economic affairs. Discussions this week have seemed to possess an elevated sense of urgency. At the [...]
How the Trump rally affected stock market valuations January 19, 2017 | City Talk Stockmarkets rarely rally in the face of political and economic uncertainty. The combination of Brexit, Donald Trump’s election, the return of inflation and prospect of higher interest rates would normally undermine demand for shares. But instead, stockmarkets have rallied with some indices hitting all-time highs. Investors expect his policies to reinvigorate the US economy, and [...]
Why the Bank of England could turn more hawkish in 2017 January 17, 2017 Suppose the UK had voted to stay in the EU. Would the Bank of England have hiked its benchmark interest rate by now? Yes, probably. But that didn’t happen. Instead, the central bank aggressively expanded monetary policy in August, shortly after the UK voted for Brexit. The Bank's efforts, in conjunction with Theresa May’s ship-steadying [...]
Under Press-ure: Activist takes 19 per cent stake in regional press group January 12, 2017 Regional newspaper group Johnston Press could come under pressure after an activist investor took a 19 per cent stake in the company. Crystal Amber today increased its stake from 6.7 per cent to 18.6 per cent. Read more: Johnston Press reduces debt woes by flogging papers for £17m Johnston Press was among many newspaper companies [...]
UK investor faith in equities grows, bringing 10 months of outflows to an end January 11, 2017 UK investors regained some faith in equities in November as 10 months of outflows came to an end, new figures out today show. Total funds under management totalled £1 trillion during the month, with net retail fund sales of £1.5bn, up from £595m in October. Total sales of equity funds came in at £583m, the [...]
Ways to withstand and exploit market volatility in private investor portfolios January 11, 2017 How concerned should private investors be about on-going market volatility? After all, the Brexit and Trump votes and the Italian referendum not only caused immediate turmoil in global stockmarkets, they set the stage for uncertainty well into next year and even beyond. As conditions become more challenging, investors will want to review their portfolio make-up [...]
Buy-to-lose? With new restrictions on buy-to-let mortgages and the introduction of other punitive measures in 2017, is there any value left in letting for mortgaged landlords? January 11, 2017 As we enter 2017, the tide has truly turned against Britain’s buy-to-let landlords. First, George Osborne discouraged people from buying a second residential property by imposing extra stamp duty of 3 per cent. Now, the Bank of England is demanding that mortgage lenders “stress test” loans to landlords. Since 1 January, the Bank’s Prudential Regulation [...]
With the oil price higher, a credible central bank and warmer relations with the US, Russia’s stock market and the rouble could rise even further this year January 10, 2017 Since Donald Trump’s election, investors have embraced his tax-cutting, regulation-ripping agenda, and have been resolute in backing perceived winners and dumping losers. Developed markets are in; emerging ones are out – the obstinate tycoon must be pleased. Since 9 November, the promise of higher fiscal spending in the US has raised bond yields, and caused the [...]
After Trump and Brexit, populism should take centre at Davos January 10, 2017 Responsive and Responsible Leadership: that’s the theme of this year’s World Economic Forum meeting in Davos next week. Amid all the political carnage of 2016, this actually seems to be quite a timely headline. Especially when compared with some of the spectacularly missed opportunities to put the biggest global issues at the heart of the Alpine [...]