Walker Crips' Market Commentary: Recent Episodes
Walker Crips Investment Management Limited
This weekly podcast from the team at Walker Crips Investment Management provides an in depth commentary on the macro economic factors driving global markets, whilst also focusing on individual stocks that are making headlines.
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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UK unemployment grew and wage growth stabilised last week after UK labour market data presented a mixed economic outlook. The May unemployment claimant count increased by 50,400, increasing the unemployment rate to 4.4%. Payrolled workers dropped by 3,000, and vacancies declined by 12,000 to 904,000. Despite these signs of a cooling job market, average weekly earnings remained strong at 5.9%, partly due to an April minimum wage increase. This wage growth complicates the Bank of England's ("BOE") efforts to balance economic cooling with inflation control.
Stocks featured:
Halma, Molten Ventures and FirstGroup
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
UK inflation expectations continue to ease with the Citi/YouGov inflation tracker for May showing a decline to 3.1%, ahead of expectations and the lowest since July 2021. The Bank of England’s ("BOE") Decision Maker Panel survey indicated steady short-term inflation expectations but noted a potential stall in the disinflationary process. Encouragingly, wage growth expectations fell, which could reduce inflationary pressures. The British Chamber of Commerce revised growth forecasts upward, but anticipates inflation to remain above the BOE's target in the medium term. The British Chamber of Commerce also projects modest BOE rate cuts with the key Bank Rate being at 4.75% by the end of 2024. Meanwhile, Purchasing Managers Index data showed the services sector continues to support economic expansion, and the manufacturing sector expanded at its quickest pace in over two years...
Stocks featured:
B&M European Value Retail, Hollywood Bowl Group and Ninety One
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The Bank of England's ("BOE") outgoing Deputy Governor, Ben Broadbent, defended the bank’s policy-making process against accusations of groupthink, highlighting robust discussions at meetings. While acknowledging progress on inflation, Broadbent hinted at possible rate cuts ahead of the BOE's next meeting in the coming months. Meanwhile, there has been positive news on the consumer front; the British Retail Consortium reports UK shop price inflation has returned to normal levels, with May seeing the lowest annual shop prices since late 2021. This decline, likely due to subdued consumer demand, coincides with the fastest growth in UK retail sales since December 2022, as reported by the Confederation of British Industry Distributive Trade Survey, suggesting rising consumer confidence.
Stocks featured:
Auto Trader, Pets at Home Group and Wizz Air Holdings
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
UK inflation eased sharply in April to 2.3% year-on-year, surpassing market consensus and Bank of England (“BOE”) forecasts of 2.1%, marking the lowest rate since summer 2021. While gas and electricity prices declined, motor fuel prices increased, slightly offsetting the downward pressure. However, core inflation remained sticky, recording a 3.9% figure against a consensus of 3.6%. The key services measure, closely monitored by the BOE for second-round effects, eased slightly to 5.9% from 6.0%, still above the 5.5% consensus.
Stocks featured:
National Grid, RS Group and Marks and Spencer
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
There is a continued expectation that the Bank of England ("BOE") will be cautious in lowering interest rates, unlike during past rate-cutting cycles. Bloomberg and Reuters reported concerns about inflation reaccelerating if rates are lowered too quickly due to past downturns such as those in 1998, 2001 and 2008. Markets are currently pricing in the first interest rate cut in August of 0.25%, followed by another potential cut in November.
Stocks featured:
BT Group, Experian and Sage Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week, the Bank of England ("BOE") decided to maintain interest rates at 5.25%. However, two out of nine officials from the Monetary Policy Committee ("MPC") voted in favour of an interest rate cut, demonstrating a more dovish view and increasing market expectations for a rate cut in June. This shift was predominantly driven by macroeconomic forecasts indicating inflation heading back towards its 2% target shortly. The market response was relatively subdued as investors awaited incoming economic data, with two sets of inflation and labour market updates scheduled before the BOE's June interest rate decision. Notably the BOE Governor, Andrew Bailey, also hinted at the possibility of deeper interest rate cuts, highlighting the institution’s commitment to addressing economic concerns...
Stocks featured:
Boohoo Group, IWG and John Wood Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
In anticipation of the Federal Reserve’s (“Fed”) upcoming policy decision, the FTSE 100 and gilt yields saw modest increases. This decision is expected to influence the Bank of England's (“BOE”) interest rate strategy. Currently, UK markets have dialled back interest rate expectations, predicting only 0.38% in cuts this year, with the first adjustment anticipated in the fourth quarter. This cautious stance comes despite the slowest rise in UK shop prices since December 2021, as reported by the British Retail Consortium. This reflects a notable deceleration in non-food price inflation and easing food costs.
Stocks featured:
Standard Chartered, Smurfit Kappa Group and Melrose Industries
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week saw economists divided over the timing of the anticipated interest rate cuts by the Bank of England (“BOE”). A Reuters poll revealed a division between forecasts for a June cut and a delay until the third quarter. Despite inflation easing to 3.2% year-on-year in March, slightly above the expected 3.1%, persistent service prices and wage growth may delay the BOE’s monetary easing. The International Monetary Fund’s recent downward revision of the UK's growth outlook further complicates the BOE's decision-making, emphasising the need for a cautious approach amid prolonged weak growth...
Stocks featured:
Anglo American, Barclays and NatWest Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
As inflation dynamics diverge between the UK and the US, the Bank of England (“BOE”) is poised for potential interest rate cuts ahead of the Federal Reserve. Bloomberg reports that the momentum of lowering inflation in the UK, with further easing expected, bolsters the case for a summer rate cut. Despite warnings from BOE Monetary Policy Committee members Jonathan Haskel, Catherine Mann and Megan Greene about the likelihood of rate cuts, market dynamics suggest a shift in monetary policy could occur sooner due to the UK's distinct economic conditions.
Stocks featured:
Mondi, Dr Martens and Dunlem
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The former Chair of the US Federal Reserve, Ben Bernanke, has offered a candid assessment of the Bank of England's ("BOE") forecasting processes, highlighting shortcomings such as outdated modelling software and staff carrying out manual functions which could be automated. While providing recommendations for improvement, Bernanke stopped short of advocating major departures from the BOE's traditional approach to monetary policy, leaving such reforms for future consideration. As discussions within the central bank continue, the review marks a pivotal moment for reassessing the UK's monetary policy framework...
Stocks featured:
Centrica, Fresnillo and Rio Tinto
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Amidst evolving economic indicators and shifting market sentiments, the Bank of England's (“BOE”) latest Decision Maker Panel survey indicates a moderation in both inflation and wage forecasts. The survey highlights a decline in year-ahead own price inflation to 4.1% in the three months to March, down from 4.3% in February, suggesting a slight easing in price pressures. Similarly, one-year ahead Consumer Price Index (“CPI”) declined to 3.2% from 3.3%, while three-year ahead CPI stood at 2.7% versus the previous 2.8%, indicating a tempered inflation outlook. Moreover, the survey reports a year-ahead wage growth of 4.9% on a three-month moving average basis, coupled with an annual wage growth of 6.4% in March, reflecting a gradual slowdown in wage growth momentum.
While the UK economy continues its recovery trajectory, the pace appears to have eased slightly, particularly within the services sector. The final services sector Purchasing Managers' Index (“PMI”) for March came in at 53.1, slightly below the estimate of 53.4, indicating a modest upturn in activity. However, this moderation leaves the composite reading at 52.8, below February's nine-month high...
Stocks featured:
Fresnillo, Ocado and Future
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Amidst recent economic data demonstrating a challenging landscape, the UK economy finds itself navigating through uncertain waters. Official figures released by Reuters last week confirmed that the UK economy slipped into a shallow recession last year, with gross domestic product ("GDP") contracting by 0.1% in the second quarter last year and 0.3% in the final quarter of 2023. Although unchanged from preliminary estimates, these numbers underscore the fragile state of the economy.
The weak starting point for GDP growth in 2024 suggests that the pace of recovery may be modest, with forecasts indicating growth limited to less than 1% for the calendar year. Structural headwinds are expected to constrain growth, prompting concerns that prolonged high-interest rates could exacerbate risks to the economy...
Stocks featured:
Big Technologies, James Halstead and YouGov
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The Bank of England (“BOE”) last week announced its decision to maintain the benchmark interest rate at 5.25%, signalling a cautious approach amidst evolving economic conditions. However, recent developments in the UK's economic landscape have sparked speculation about potential shifts in monetary policy. With headline inflation easing to 3.4% in February, slightly below the BOE's forecast, attention turns to the central bank's stance on interest rate cuts.
Stocks featured:
Next, Judges Scientific and Trustpilot Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
Hosted on Acast. See acast.com/privacy for more information.
As the financial world braces for the Bank of England's (“BOE”) meeting on 21st March, analysts are closely scrutinising signals of potential policy shifts. Despite nearing the 2% inflation target, the consensus among experts, as indicated by Reuters polling, suggests that the BOE is likely to maintain a status quo on interest rates for the time being. However, a dovish tilt is emerging, with expectations leaning towards a cautious approach to rate adjustments. This sentiment reflects the BOE's desire for more concrete evidence of inflation control before contemplating any significant monetary policy changes.
Stocks featured:
Halma, 4Imprint Group and Persimmon
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
Hosted on Acast. See acast.com/privacy for more information.
UK Chancellor Jeremy Hunt unveiled a 2% reduction in the main rate of National Insurance contributions in the Spring Budget, in line with expectations. These adjustments were supported by upgraded forecasts from the Office for Budget Responsibility, with revised gross domestic product projections of 0.8% in 2024 and 1.9% in 2025. However, an article from Bloomberg noted concerns as fiscal headroom dropped to £8.9 billion from £13 billion in the November forecast, the second lowest level on record.
Stocks featured:
Legal & General, Kier Group and Greggs
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
Hosted on Acast. See acast.com/privacy for more information.
Bank of England (“BOE”) Deputy Governor, Sir Dave Ramsden asserted this week that inflation pressures in the UK remain too high, emphasising the need for more evidence of easing before contemplating a cut in interest rates. Additionally, Ramsden suggested the possibility of the BOE selling all UK government bonds purchased under Quantitative Easing (“QE”) to be more prepared for future crises. The move aims to safeguard public finances, as the Treasury underwrites losses incurred on these asset sales. Ramsden clarified that other liquidity tools would replace QE.
Stocks featured:
Howden Joinery, Ocado and Reckitt Benckiser Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
Hosted on Acast. See acast.com/privacy for more information.
Dale Bartleson of YO1 Radio in York sits down and chats with Alan Kinnaird of Walker Crips Investment Management.
📞 Get in touch
To find out more about the full range of services Walker Crips Investment Management has to offer please click here to request a call back from Alan Kinnaird, Chartered FCSI, or another member of the team based in our York office.
To find out more about YO1 Radio, please click here.
Capital at risk. Professional advice should be sought before engaging in investment activity. Walker Crips Investment Management Limited and Walker Crips Financial Planning Limited are authorised and regulated by the Financial Conduct Authority.
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Recent statements from Bank of England ("BOE") officials indicate a reluctance to ease their inflation-fighting stance, despite confirming a technical recession late last year. Chief economist, Huw Pill, emphasised the need for several more months of data before being convinced that inflation would fall and remain at the BOE’s 2% target. Monetary Policy Committee members, Megan Greene and Catherine Mann, acknowledged some easing in wage pressures but highlighted the ongoing tightness in the labour market. Governor Andrew Bailey, steering focus toward positive forward-looking data, such as purchasing managers’ indexes and sentiment indicators, remains cautious about easing. Former BOE chief economist, Andy Haldane, once hawkish, now warns of deepening the UK recession if interest rate cuts are not implemented soon...
Stocks featured:
Rio Tinto, HSBC Holdings and Mondi
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
UK inflation data released last week provided a surprise as headline inflation remained steady at 4% year-on-year, defying expectations for a slight increase. The core Consumer Price Index ("CPI") was also below forecast at 5.1%. Monthly CPI figures declined 0.6%, contrasting with the anticipated 0.3% drop. Despite services inflation persisting at 6.5%, slightly below projections, economists are optimistic, forecasting a dip in inflation to 3.4% in February and a return below the Bank of England's ("BOE") 2% target by April...
Stocks featured:
RELX, Centrica and NatWest Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
In a week of diverse developments, the Bank of England ("BOE") conveyed a nuanced stance on interest rates. Deputy Chief Breeden's speech on Wednesday suggested waning concerns about the necessity of future rate hikes as inflationary pressures ease. This sentiment resonated with the BOE's recent policy statement, indicating a potential review of the duration at current rate levels. Despite acknowledging receding inflation pressures, Breeden remained cautiously optimistic, emphasising the need for sustained evidence of inflation returning to target levels.…
Stocks featured:
Vodafone, BP Plc and Unilever
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week the Bank of England (“BOE”) voted to keep interest rates steady at 5.25%. The decision represented a rare divergence of opinion with the Monetary Policy Committee split three ways, for the first time since the 2008 financial crisis. Two committee members advocated for a 0.25% interest rate hike, another voted for a 0.25% interest rate cut, while the remaining six members opted for the status quo. The BOE affirmed the need for a restrictive monetary policy to address inflationary pressures, yet hinted at a forthcoming review on the duration of the current interest rate levels.…
Stocks featured:
Pets at Home, GlaxoSmithKline and Diageo
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week, Bloomberg published an article detailing that the Bank of England (“BOE”) should revise its inflation tightening bias or risk undermining the credibility of its own policy. Despite unchanged guidance since August, inflation has eased faster than expected, wage growth has softened and the economy has slowed. A delicate balancing act lies ahead for the BOE as it navigates through the Spring Budget and an impending general election later this year. With new economic forecasts expected in February, the BOE might recalibrate its policy communication to align with the evolving economic landscape…
Stocks featured:
EasyJet, Associated British Food and Crest Nicholson Holdings
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week, UK inflation figures surprised on the upside, with the headline Consumer Price Index showing 4%, surpassing the consensus estimate of 3.8%. Core inflation also exceeded expectations at 5.1%, deviating from the forecasted 4.9%. Despite the increase, economists caution against overinterpreting this data, as inflation is projected to reach the Bank of England's (“BOE”) 2% target by the spring. Nevertheless, this data counters market complacency, suggesting the BOE might delay the pivot towards interest rate cuts until later in the year. The market is now largely pricing in the first interest rate cut in May, with the expectation of overall rate cuts in 2024 decreasing from 1.25% to 1.10%...
Stocks featured:
Dunelm Group, Flutter Entertainment and Ocado
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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According to the latest figures announced by the Office of National Statistics last week, the UK economy grew by 0.3% in November 2023, surpassing the expected 0.2% expansion by economists polled recently by Reuters, after contracting by 0.3% in the previous month. The services sector, buoyed by robust performances in retail, car leasing and computer games, played a pivotal role in this recovery. Strong Black Friday sales and a reduction in industrial action also contributed, alongside reduced fears of a technical recession. However, Bloomberg cautioned that the 0.3% rebound in November may not be sufficient to dispel concerns of a recession, highlighting the delicate balance between stagnation and contraction....
Stocks featured:
Greggs, Marks & Spencer and Whitbread
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The first week of the new year unveiled a mixed outlook for the UK economy as surveys of economists published in the Financial Times and The Times portrayed a consensus on sluggish growth in 2024, teetering on the edge of a technical recession. Analysts anticipate gross domestic product growth between 0% and 1%, with a looming general election adding a layer of uncertainty. The Bank of England (“BOE”), while expected to cut interest rates, is likely to tread cautiously as the battle against inflation continues. According to The Times survey, economists foresee at least two rate cuts in 2024. Concerns about business investment persist with hopes resting on pre-election giveaways and an increase in real disposable income...
Stocks featured:
Next, JD Sports and Clarkson
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw the Bank of England ("BOE") stand firm on its key rate, leaving interest rates unchanged at 5.25% and dismissing talks of imminent rate cuts, a day after the Federal Reserve signalled its intention to cut rates in 2024. BOE Governor Andrew Bailey emphasised the ongoing fight against inflation, challenging investors who had increasingly bet on rate cuts. Despite BOE warnings, traders remained unfazed, forecasting interest rates of 4% by the end of the next year, as reported by The Times.
Contrary to market expectations, The Times also reported that the Confederation of British Industry (“CBI”) predicts that the BOE will not cut interest rates until 2026 due to persistently high inflation. The CBI outlook suggests that the base rate will stay at 5.25% for at least two more years, impacting consumer spending and business investment. The CBI's growth forecast of 0.8% in the UK for the coming year underscores concerns about the prolonged impact of elevated interest rates on the economy...
Stocks featured:
Currys, Chemring Group and Entain
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK economy shows promising signs of stabilising following the recent economic slowdown induced by soaring inflation and successive interest rate hikes. At the Bank of England’s (“BoE”) upcoming monetary policy committee meeting this week, the committee is expected to keep interest rates on hold as wage growth remains
relatively high and inflation levels remain elevated. The British Chamber of Commerce highlighted that the UK economy will continue growing until the end of 2025, albeit at extremely low levels. The report highlighted prolonged higher interest rates, trade barriers and limits on consumer spending as headwinds which present a low growth environment. A Reuters poll indicates a split among economists regarding the timing of the BoE's potential rate-cutting cycle, with opinions varying on both the initiation and eventual levels of rate cuts....
Stocks featured:
Moonpig Group, Paragon Banking Group and Ashtead Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Bank of England (“BoE”) Governor Andrew Bailey and Deputy Governor Dave Ramsden last week underscored the challenges ahead in taming inflation. Bailey, in an interview with The Chronicle, acknowledged the difficulty of the next stage in the fight against inflation. While welcoming recent data, Bailey was sceptical that the 2% target will be achieved any time soon, predicting inflation to stand at around 4% by the end of the first quarter of 2024. Deputy Governor Ramsden, interviewed on Bloomberg TV and at a conference in Hong Kong, emphasised the need for a prolonged restrictive policy to further reduce inflation, projecting no return to target before the end of 2025.....
Stocks featured:
Rolls-Royce, Dr Martens and Lloyds Banking Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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As per a City A.M. poll last week, economists project Bank of England (“BoE”) interest rate cuts between May and August next year, contrasting with market expectations of a move from March. BoE policymakers remain cautious about high wage growth and persistent inflation concerns and view the ongoing Gaza conflict as a significant risk to inflation targets. The potential for an earlier rate cut hinges on economic slowing, influenced by the impact of prior rate tightening....
Stocks featured:
Sage Group, Cranswick and Diploma
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw the UK October inflation figures witness a significant drop, with the headline Consumer Price Index (“CPI”) standing at 4.6% year-on-year, below the consensus expectations of 4.8% and a substantial decrease from
the prior month's 6.7%. Core inflation also moderated to 5.7% versus a consensus estimate of 5.8% and September’s 6.1% reading. The breakdown from the Office for National Statistics (“ONS”) attributed this decline primarily to housing and household services, where the annual rate for CPI was at its lowest level since records began in 1950. The Bank of England (“BOE”) has also been closely monitoring service prices and noted a decrease to 6.6% from 6.9% last month. This, combined with softer labour market data, reinforces expectations that the BOE's rate cycle has peaked, with the possibility of an interest rate cut coming as early as next May. However, The Times reported that money markets have been pricing in rate cuts from as early as March after the slowdown in inflation. BOE policymakers continue to signal caution over rate cut bets, maintaining the narrative that rates will remain higher for longer....
Stocks featured:
Experian, Ocado Group and Halma
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week, Bloomberg Economics conducted an analysis revealing that the latest forecasts are indicative of turbulent times ahead for the UK economy, with key indicators suggesting that the country may already be in the midst of a recession. After a period of aggressive monetary tightening and rising unemployment, households are becoming more cautious about spending, posing a significant challenge for Prime Minister Rishi Sunak, who faces an upcoming election. The Autumn Budget statement on 22 November is under scrutiny, with scepticism from think tanks about the fiscal headroom for tax cuts. While Bank of England (“BoE”) Governor Andrew Bailey insists it is premature to discuss interest rate cuts, Chief Economist Huw Pill acknowledges investors are not being unreasonable in their prediction for rate cuts next summer. Traders are now anticipating interest rate decreases in the region of 0.75% next year, reflecting a notable shift from just 0.3% last month. The contrasting views within the BoE highlight the complexity of navigating economic uncertainties, especially with the threat of inflation and geopolitical tensions....
Stocks featured:
Marks & Spencer, Associated British Foods and Auto Trader
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw the Bank of England (“BoE”) decide to keep interest rates steady at 5.25% for the second consecutive meeting, in line with expectations. The BoE's assessment notes that while there have been no significant changes in inflation since September, underlying inflation remains elevated, and the potential for secondary inflation effects to unwind is prolonged. The BoE also highlighted the risk of rising inflation due to Middle East events, despite the current mean projection for inflation to be at 2.2% in two years’ time and 1.9% in three years’ time. The gross domestic product growth forecast for the third quarter of 2023 is now expected to be flat, falling below previous estimates from August of 0.1% growth. The central bank also signalled a 50% chance of a recession by mid-2024. The BoE's forecasts are based on expectations of maintaining the 5.25% base rate until the third quarter 2024. Despite the BoE's recent hawkish stance, market sentiment remains slightly more dovish, with a 25% probability of one more interest rate rise by February 2024 and focus shifting to the timing of the first rate cut. The central bank may have to consider reducing the bank rate faster next year as the economy slows...
Stocks featured:
Ocado Group, BP and Next
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK's economic landscape experienced several developments last week. Borrowing costs surged to their highest point in 25 years as the 30-year UK gilt yield reached 5.209%. This increase mirrored global trends as investors worldwide anticipate interest rates will remain at elevated levels for a longer period than first expected. Despite this, a Reuters survey of economists indicated that the Bank of England's rate cycle might have peaked, with expectations of rates remaining on hold until the second quarter of 2024. Inflation risks were acknowledged, though the labour market seemed to stabilise. The majority foresaw the first rate cut, if needed, occurring no earlier than July, with a 0.25% reduction. In parallel, the UK labour market displayed challenges, with the benefit claimant count showing a substantial rise by 20,400, exceeding consensus estimates of a 2,300 increase. Notably, uncertainty around the Labour Force Survey prompted the introduction of a new data series for the unemployment rate by the Office for National Statistics, revealing a 4.2% unemployment rate, up by 0.2% from the previous quarter. Payrolled employment saw a decline and average weekly earnings eased....
Stocks featured:
Natwest Group, Barclays Initial and International Consolidated Airlines Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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September brought an unexpected twist to the UK inflation narrative, with a surprising increase to 6.7% year-on-year, slightly surpassing consensus expectations of 6.6%. The service sector, which saw increasing prices, was noted as the primary driver. While this may encourage a more hawkish stance within the Bank of England (“BoE”), wage growth indicated signs of slowing, suggesting a potential easing in price pressures by the end of the year. The UK labour market also displayed signs of easing, with a decrease in payrolled employees and vacancies. The Times cited BoE Deputy Governor, Jon Cunliffe, who anticipates that interest rates will persist at higher levels for the foreseeable future. He noted mixed economic signals, with some indicators slowing, while others suggest that the labour market is beginning to cool. He acknowledged that the economy displayed more resilience in 2022 than previously thought...
Stocks featured:
Bellway, Rentokil Initial and Segro
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The International Monetary Fund (“IMF”) released its World Economic Outlook last week, which provided a comprehensive perspective on the global economy. While the outlook has shown some balancing since earlier this year, downside risks persist. The report highlighted the limited room for policy errors and delved into the consequences of tightening policies on both inflation and economic activity. The IMF's updated gross domestic product growth forecasts for 2023 and 2024 include a weaker growth outlook for the UK compared to its G7 peers in 2024. It is also noteworthy that core inflation is expected to decline gradually, with many economies not returning to target inflation until 2025. This suggests that monetary policy must remain consistent to effectively tackle inflation, while fiscal consolidation is essential to address rising debt.
Stocks featured:
EasyJet, YouGov and Ashmore Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Rishi Sunak's Conservative Party conference speech last week marked the beginning of his election campaign. He outlined a bold agenda, including tax cuts, education reform and a substantial £36 billion investment in northern and midlands transport infrastructure. This investment came as a result of the decision to cancel the northern leg of the HS2 railway project, which stirred mixed reactions and represented a significant shift in political consensus. Sunak also emphasised the Conservative Party's commitment to bold change, introducing a new qualification, the "Advanced British Standard," and promising tax cuts while highlighting the need to control inflation. Additionally, he proposed a phased increase in the legal smoking age....
Stocks featured:
Aviva, Pennon Group and Tesco
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw mixed signals for the UK economy as the job market displayed signs of cooling. According to an update from the Recruitment and Employment Confederation (“REC”), job postings rose by 13.5% in the week ending 17th September but remained below earlier-year averages, with 175,000 new job adverts posted, down from over 200,000 on average earlier in the year. The REC Chief Executive, Neil Carberry, noted that recruiters
across the country have reported a market normalisation as job postings fell from pandemic highs. This cooling labour market was highlighted by the Bank of England (“BoE”) as one of the factors influencing its decision to keep interest rates on hold. Despite these concerns, the UK's economic performance since the onset of the Covid-19 pandemic has been stronger than previously thought. Data from the Office for National Statistics revealed that the UK's recovery has outpaced that of Germany and France, signalling a faster post-pandemic rebound. This unexpected resilience in the economy has raised questions about the accuracy of official economic forecasts. The Institute for Fiscal Studies cautioned that excessive government borrowing, driven by costly policies introduced by recent chancellors, has undermined faith in these forecasts....
Stocks featured:
Future, Card Factory and Learning Technologies Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw inflation and interest rates take centre stage as the latest figures were released. Forecasts at the beginning of the week showed that August inflation was expected to accelerate to 7% from a prior reading of 6.8% in July, with economists attributing the acceleration to rising fuel prices. However, August inflation came in weaker than expected at 6.7% alongside a much softer core inflation figure of 6.2%, compared to a consensus
forecast of 6.8%. The Office for National Statistics (“ONS”) said that the largest downward contribution came from food prices and accommodation services, which offset fuel price increases. This inflation reading led to a shift in momentum from consensus expectations for an interest rate hike, as markets priced in less than a 50% probability of a 0.25% rate rise compared to previous forecasts which anticipated there would be a quarter percent increase....
Stocks featured:
JD Sports Fashion, Dunelm Group and Halma
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw UK equity markets in positive territory as the FTSE 100 closed the week 2.1% higher as markets continue to anticipate that the Bank of England (“BoE”) is approaching the end of its rate tightening cycle. An article published by Bloomberg discussed recent rhetoric from BoE policymakers and noticed that there is a change in tone alongside more clarity on the debate facing the Monetary Policy Committee as it nears the end of the cycle. It was noted that the change in tone may be a sign of the BoE laying the foundations for a pause in interest rate hikes. However, the BoE may find it difficult to justify a pause at this week’s upcoming meeting, due to accelerating wage growth as a result of one-off bonuses and basic pay increases stuck at high levels. This demonstrates the continued resilience within the UK labour market, although unemployment figures are showing gradual signs of increasing as a result of the slowing economy. The latest figures published last week show the UK unemployment rate was 4.3% during the period May to July 2023, compared to 4.2% in the previous quarter...
Stocks featured:
Renishaw, Kier Group and Associated British Foods
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The British Chamber of Commerce (“BCC”) published updated economic outlook figures last week which highlighted an expectation that the UK economy will avoid a technical recession. However, growth is set to remain weak. Figures state that the UK is expected to have a growth rate of 0.4% for the whole of 2023, dropping to 0.3% in 2024 and rising to 0.7% in 2025. The BCC also revised inflation figures upwards for 2024 to 3% against a previous forecast of 1.5%. This shows that the BCC expects inflation to remain higher for longer, largely as a result of a resilient labour market. The report suggests that although the UK economy will avoid a recession, it will likely feel like one for a lot of households and businesses due to the low growth levels within the economy....
Stocks featured:
Hilton Food Group, Gamma Communications and Ashtead Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw the FTSE 100 rise 1.6% amid hopes that global economies are nearing the end of the monetary tightening cycle. Growth within the UK equity market has been relatively flat since the start of 2023, with the FTSE 100 increasing by approximately 0.5% over the year to date. Persistent high inflation and aggressive monetary tightening by the Bank of England (“BoE”) have been the main factors leading to minimal growth for UK equities. On a valuation basis, the FTSE 100 is trading on a price to earnings ratio of approximately 10.5x, which is at the lower end of statistics over the past two decades, indicating that current UK equity prices could be considered as cheap. This is of no real surprise given the consistent negative sentiment surrounding the outlook for global economies....
Stocks featured:
Johnson Matthey, Grafton Group and Bunzl
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK market experienced a relatively quiet week last week as the FTSE 100 closed approximately 1% higher at 7,339. Inflation and interest rates continue to be the main influencing factors at present with the market continuing to forecast UK interest rates peaking at 6%. The Times reported on the most recent Office for National Statistics (“ONS”) inflation data published last week which suggested that inflation may be easing quicker than initially expected. The ONS calculations showed that core inflation fell to 6.8% in July from 6.9% in June and from a peak of 7.3% in May, compared with original data for July showing that core inflation had held steady at 6.9%. This update is a welcome development; however, services inflation is at multi-decade highs of 7.4% and wages continue to be at record levels, meaning that the updated ONS figures are unlikely to shift near term market or Bank of England (“BOE”) expectations. A Reuters poll of economists also showed that 61 of the 62 economists surveyed expect a 0.25% rate hike in September with a narrow majority thinking that this will be the end of the rate tightening cycle. Out of the 62 economists surveyed, 27 still said that rates could peak at 5.75% and two said 6%, with underlying inflation remaining too high and elevated wage growth continuing to be the most challenging aspect of BOE policy making...
Stocks featured:
BAE Systems, CRH and JD Sports Fashion
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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BAE Systems, the defence, aerospace and security company, announced it has agreed to purchase Ball Corporation’s aerospace business for approximately $5.55 billion in cash. The company said that it entered into a definitive agreement to purchase the unit, which manufactures instruments and sensors for everything from space travel to weather forecasting. The acquisition is expected to add to BAE’s earnings per share and margins in the first year following completion. The unit is also expected to generate approximately $2.2 billion in revenue this year. BAE shares dropped by approximately 5.2% last week as a result of the news with investors viewing the deal as expensive....
Stocks featured:
BAE Systems, Admiral Group and Balfour Beatty
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Bank of England (“BoE”) chief economist, Huw Pill, said last week that UK inflation remains too high and too persistent, especially as food prices may not decline in the short term. Pill stated that food price inflation may decline to 10% this year, but actual disinflation in food prices may not occur for some time after this. The BoE now forecasts that inflation will decline to 5% by the end of this year, but will not drop to the 2% target until the second quarter of 2025. Pill commented that higher and persistent inflation in the UK is mostly to do with higher imported goods prices and stressed that much of the monetary policy tightening has yet to impact the economy. However, there are signs that recent rate rises are working through the economy as inflation is falling and the labour market is cooling. The BoE remains committed to monitoring economic data and will continue with monetary tightening until it sees a further slowdown in inflation, but there is increasing optimism that we may be approaching the pivot point after fourteen consecutive rate rises...
Stocks featured:
Abrdn, Savills and TI Fluid Systems
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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BAE Systems, a defence, aerospace, and security company, saw its share price increase by approximately 8.7% last week after announcing first half results which beat market expectations. The company also raised its guidance for full year sales, underlying Earnings Before Interest and Taxes (EBIT), Earnings Per Share (EPS) and free cash flow. The dividend also increased by 11% when compared to last year alongside an approved further share buyback program of up to £1.5 billion. This program is expected to roll-on after completion of the current buyback program and conclude within three years of its commencement...
Stocks featured:
BAE Systems, ConvaTec Group Plc and Greggs Plc
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Ocado Plc, the UK based technology-led software and robotics platform, features again in this week's market commentary as its share price surged approximately 42.1% last week. The company has received a wave of positive news recently including rumours of a potential bid from Amazon, better than expected earnings and a positive settlement hearing which have all contributed to the strong share price performance. The £200 million settlement appears to have reassured investors and prospective partners of the continued unique access to Ocado’s technology and patent protection...
Stocks featured:
Ocado Plc, Croda International Plc and Centrica Plc
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Inflation once again dominated the news in the UK last week as Office for National Statistics (“ONS”) figures showed headline inflation eased sharply in June to 7.9%. Core inflation also fell to 6.9% in June, versus consensus expectations of 7.1% and a prior reading of 7.1%. This is the lowest level of inflation since March 2022 with the ONS stating that falling motor fuel prices were one of the largest downward contributors, alongside no large offsetting upward contributions. The previous month’s inflation figures surprised to the upside and caused the Bank of England (“BoE”) to raise interest rates by 0.5% against an expectation of 0.25%, which led to markets increasing their peak rate expectations to 6.5%. The market therefore reacted positively to the June inflation figures as investors began to unwind their expectations of continued aggressive rate hikes by the BoE. Markets now anticipate the base rate to peak below 6%, which caused the FTSE 100 to rise more than 3% last week. It should be noted that the June figures are still high, but they have reinforced market expectations that the BoE is nearing the pivot point in the battle against inflation...
Stocks featured:
Ocado Group, Wise and Persimmon
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Last week saw the shares of JD Wetherspoon, the owner and operator of pubs throughout the UK and Ireland, increase by approximately 8.7% after announcing a trading update. The update demonstrated that trading was in line with market expectations and in the last 10 weeks like-for-like sales were 11% higher than 2019 levels. The company also announced a small improvement in expected utility costs, resulting in a one-off uplift to the company’s estimates for 2024...
Stocks featured:
JD Wetherspoon, Experian and Ashmore Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK’s FTSE 100 saw a decline of approximately 3.4% last week. The index closed Monday’s sessions at 7,274 as sticky inflation and rising interest rates continue to be an area for concern. Bank of England (“BoE”) Governor, Andrew Bailey, stated in an interview with the BBC his continued commitment to bringing inflation down. Bailey did not provide a timeframe for when rates might peak or begin to decrease as inflation continues to remain too high. This led to market expectations continuing to rise with markets now anticipating rates to reach 6.5% by March 2024. Last week also saw research published by JP Morgan highlighting that the BoE may need to hike rates to 7% in a worst-case scenario. However, their expectation is that rates will peak at 5.75% in November this year....
Stocks featured:
AstraZeneca, Currys and Jet2
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Sage Group, the cloud-based business management solution company, saw JP Morgan analysts upgrade the stock to overweight from neutral. This resulted in its share price increasing by approximately 6% last week. The company is expected to deliver sustainable double-digit organic revenue growth until 2025. JP Morgan believes there is room for further revenue growth between 2026 and 2030 with the company having a strong track record and a high free cash flow conversion...
Stocks featured:
Sage Group, Aston Martin and Serco Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The beginning of last week saw investors and some sell-side economists speculating that market estimates for the Bank of England (“BoE”) rate outlook may have been too aggressive. At the start of the week, markets were pricing a peak rate close to 5.75% based on forecasts for inflation figures on Wednesday to decelerate to 8.4% from 8.7% in May. However, when Wednesday arrived, inflation figures unexpectedly rose to 8.7%. Inflation has now registered 22 months above the 2% target with expectations for any meaningful slowdown in inflation unlikely to arrive before July. This led gilts to come under pressure as the yield on two-year gilts increased by approximately 0.2%, firmly above 5%. The ten-year benchmark was more than 0.1% higher, just short of 4.5%, close to its highest levels since last October. This has resulted in the spread between two-year and ten-year gilts to be the most inverted it has been since 2000. Markets therefore anticipated an increased likelihood of more aggressive rate tightening, increasing the risk of a recession...
Stocks featured:
Anglo American, Ocado and Persimmon
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Smith & Nephew, the British multinational medical equipment manufacturer, saw its share price increase by approximately 5% last week. The increase in share price was triggered as a result of Smith & Nephew receiving Food and Drug Administration ("FDA") clearance for its AETOS Shoulder System. This is the latest solution in Smith & Nephew’s expanding Upper Extremity portfolio and is designed to maximise stability, preserve bone and maintain patient anatomy. The company also noted that total shoulder arthroplasty is one of the fastest growing segments in Orthopaedics with an estimated 250,000 procedures in the US by 2025...
Stocks featured:
Smith & Nephew, Glencore and 888 Holdings
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK housing market was one of the key areas of focus this week as UK Halifax house price data was announced. The data showed a flat reading in May, but on an annual basis prices fell 1% versus consensus for a 0.9% drop. This was the first annual decline in prices since December 2012. Halifax did highlight that given the flat monthly reading, the annual decline reflects strong house price growth this time last year. This has shown a shift from the brief upturn in prices seen at the beginning of the year as the impact of higher interest rates feeds through into the market. This is largely impacting those with expiring fixed rate mortgage deals as they need to refinance at higher rates...
Stocks featured:
Croda International, Boohoo and Indivior
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Dechra Pharmaceuticals, a business involved in the development and marketing of veterinary products, saw its share price increase approximately 15% last week. This was after a cash offer made by Freya Bidco Limited for the entire issued, and to be issued, ordinary share capital of Dechra for 3,875p per share. This represented a 44% premium to the closing price of 2,690 pence on the 12th April, the last business day before the commencement of the Offer Period...
Stocks featured:
Dechra Pharmaceuticals, B&M and Greencore
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Nvidia, the American multinational technology company, announced first quarter results last week which beat expectations and sent the share price soaring approximately 24.6% last week. Nvidia issued guidance for substantial sequential revenue growth in the second quarter as demand for content-creating artificial intelligence bolsters its data centre platform. The company said that revenue has been largely flat at $11 billion, plus or minus 2%, for the July quarter. The consensus among analysts was for revenue of $7.13 billion before the outlook was given, and later raised to $11.09 billion. In the first quarter, revenue declined 13% year over year to $7.19 billion, but surpassed expectations for $6.52 billion. Generative artificial intelligence drove significant upside for Nvidia’s products, and has created significant opportunities for broad-based global growth which provides an exciting outlook for the company...
Stocks featured:
Nvidia, Marks and Spencer and Pets at Home
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Informa shares increased approximately 4% last week as it was announced the company had reached an agreement to acquire Winsight for $380 million and that its acquisition of Tarsus completed ahead of schedule. The acquisition of Winsight is expected to accelerate Informa’s growth by offering expansion within the business-to-business foodservice market. Informa’s acquisition is also expected to deliver strong financial returns with earnings accretion from the outset and a post-tax return ahead of Informa’s long-term weighted average cost of capital in the first full year of ownership. The deal has been fully funded by in-year cash flow growth and Informa’s balance sheet, with the expectation to further grow revenues, margins, earnings and cash flow..
Stocks featured:
Informa, YouGov and BT Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Beazley is a UK-based global specialist risk insurance and reinsurance company. Last week the company issued a trading statement announcing its net income at $104 million for the quarter ended 31 March 2023, marking a recovery from a loss of $92 million in the prior-year period. Management also remained confident in its growth guidance of mid teens gross premium written and mid 20s net premium written for 2023 full year. The positive trading statement resulted in Beazley’s share price rising approximately 3.87% for the week...
Stocks featured:
Beazley, Vertu Motors and ASOS
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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HSBC reported strong first quarter results this week and announced record profits as the bank benefited from the new era of higher interest rates and the rapid reopening of China. HSBC reported profit before tax of $12.9 billion, up $9 billion compared to the first quarter of 2022, an increase of approximately 230%. HSBC also saw revenue increase by 64% to $20.2 billion which was largely driven by higher net interest income in all of HSBC’s global businesses due to interest rate rises. The strong results enabled HSBC to announce its first quarterly dividend since 2019 of $0.10 per share, as well as a share buy-back of up to $2 billion. Management announced that HSBC expects to be able to have substantial future distribution capacity for dividends and share buy-backs. Markets responded positively to this announcement, sending the share price up by approximately 4.53% last week...
Stocks featured:
HSBC, Shopify and Pearson
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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It was a big week for Microsoft with the announcement of third quarter results alongside the announcement that the proposed $68.7 billion acquisition of Activision Blizzard had been blocked by the Competition and Markets Authority (“CMA”). The CMA expressed concern that Microsoft’s proposed acquisition of Activision Blizzard would harm competition in the fast-growing cloud gaming market. It appears that Activision Blizzard intends to work with Microsoft to appeal this decision. Microsoft’s third quarter results beat analyst expectations on both the top and bottom lines which led to the share price increasing approximately 7.52% last week. Microsoft’s announcement focused on the early feedback from the artificial intelligence demand that Microsoft have had so far. Microsoft explained that this will be an area of focus for investment with the expectation that this will help improve customer transformation and in time result in strong revenue growth...
Stocks featured:
Apple, Meta Platforms, Microsoft and Prudential
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The UK is showing that inflation continues to remain stickier than forecasted as consumer price inflation for March slowed by less than expected to 10.1% from 10.4% in February. The largest downward contributions came from motor fuels and heating oil prices, alongside soaring food prices which weighed heavily. Notable rising food prices included olive oil prices rising 49% in the year to March, sugar up 32% with milk, cheese and other dairy products all up over 30%. Food price inflation remains a thorn in the side to the Bank of England (“BoE”) achieving its inflation target of 2%. The Office for National Statistics (“ONS”) stated that this is the strongest increase in food prices in more than four decades. Retailers said that food inflation is a delayed effect of energy and commodity price rises during the past year along with poor harvests and a period of sterling weakness. As we enter the UK growing season, we are more likely to see a slowdown in food inflation, which hopefully will provide some ease to consumers...
Stocks featured:
Alphabet (Google), Amazon, Anglo American, Glencore, Meta Platforms (Facebook) Microsoft, Teck Resources and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The UK stock market saw gains last week as the FTSE 100 index climbed by 1.8%. It was announced that the UK economy stagnated in February as Gross Domestic Product (“GDP”) showed zero growth, largely as a result of the widespread industrial action which led to a disruption in productivity. GDP was below expectations of a 0.1% increase and even further below January’s 0.4% growth figure. The largest contributor to negative growth in services came from teacher strikes and was partly offset by growth in the construction sector. There have been concerns over growth in the UK in recent months, but it appears to be slowly easing as the International Monetary Fund (“IMF”) predicted that the UK’s economy would decline by 0.3% in 2023, which is less than its previous forecasts. However, upward revisions in GDP and improving global economic conditions have given increased confidence that a recession in the UK is less likely, with the focus shifting towards identifying signals for an anticipated rebound...
Stocks featured:
Citigroup, JPMorgan Chase & Co, LXi REIT, Superdry and Wells Fargo
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The Easter bank holiday saw many people enjoy a longer weekend as markets were on hold for a couple of days. Nonetheless, news was still plentiful as global markets continued to move in multiple different directions. One of the key news stories was that Saudi Arabia made a surprise decision to cut oil production by 500,000 barrels a day, alongside other OPEC+ nations joining them to result in a total production cut of 1.65 million barrels a day until the end of 2023. This saw the oil price surge by approximately 6% last week and it will be interesting to see what impact this will have on the price of oil for the remainder of the year...
Stocks featured:
Alphabet Inc (Google), AstraZeneca, Entain and RS Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Last week, revised official data revealed that the UK avoided a recession last year, helped by the energy bill subsidies provided by the government to ease pressures on households from the cost of living crisis. Notably UK GDP grew by 0.1% in the 4th quarter demonstrating the UK economy is still seeing some growth. However, there are signs the housing market remains weak as Nationwide said house prices fell in March at the fastest annual rate since the 2007-2008 financial crisis. Alongside this, Bank of England data demonstrated that there was a big drop in net mortgage lending in February. This was largely due to rising interest rates as a result of persistent high inflation, which is still weighing heavily on affordability for house buyers...
Stocks featured:
Intel Corporation, Ocado and Rio Tinto
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
March madness had a different undertone this year as investors faced market volatility and renewed uncertainties brought upon by a regional banking crisis.
The Bank of England (“BoE”) raised interest rates to 4.25% from 4% in an eleventh consecutive monthly increase. Minutes from the meeting showed that the Financial Policy Committee told policymakers before the vote that the "UK banking system maintains robust capital and strong liquidity positions," and that "the UK banking system remains resilient." Financial markets appear to expect rates to increase again amid no signs of a let-up in inflation. On a year-on-year basis, consumer prices rose to 10.4% in February, well above the consensus expectation...
Stocks featured:
Crest Nicholson, Inchcape and JD Wetherspoon
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
As European and US indices turned lower last week, investors were left pondering: can multiple financial rescues and a government budget keep a hibernating bear at bay?
Last autumn, UK pension funds that use liability driven investing as a core investment strategy were the first to experience a mismatch in assets and liabilities, necessitating a liquidity backstop. The Bank of England had to step in with a short-term quantitative easing program to prevent a crash in the gilt market and stabilise the UK pension sector.
Fast forward from last year to the present day, and three US banks have failed, demonstrating that the banking sector is not immune to the harsh realities of quantitative tightening. The troubles these banks faced were not triggered by a disastrous mini budget but rather a fall in the value of crypto currency assets. Nonetheless, a mismatch in assets and liabilities has resulted once more albeit in a different sector. Each bank has had its own White Knight come along to the rescue in the form of a bid from a competitor or a ‘bailout’. Although the US Federal Reserve (“Fed”) has been careful not to use that word, all the while emphasising support is going directly to depositors - not to the banks...
Stocks featured:
Close Brothers, Credit Suisse, Direct Line, Prudential and UBS
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
It was always going to take a big news story to divert the attention of equity markets away from hanging on every word that Jerome Powell (Chair of the US Federal Reserve, "Fed") utters about inflation and the likely path of interest rates. The sudden collapse of Silicon Valley Bank ("SVB") proved to be just the story. To put it simply, the Fed's policy of aggressively raising interest rates has had the effect of pushing borrowing costs to a level above where many cash-hungry start-up companies can sustainably raise finance. At the same time, those very same high interest rates feed into (and have a negative effect on) the discounted cash flow valuations which are commonly used to value unprofitable start-up companies - the result being to effectively starve them of the opportunity to raise equity finance. So, choked of all forms of finance, their only option had been to draw upon cash reserves held with the likes of SVB. As cash calls gathered pace, SVB had to liquidate some of its "low risk" capital (i.e. US Treasuries) much earlier than it had expected it would need to. Due to the rate hiking over the past year, those “low risk” Treasuries were not worth nearly as much as they had been 12 months prior - and so SVB faced a cash shortfall, which it tried to plug via a hastily arranged equity fund-raising. If there is one thing guaranteed to cause panic amongst investors and savers alike, it is a bank that admits it cannot meet customer redemption requests...
Stocks featured:
Direct Line, Legal & General and Robert Walters
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
In the US, the S&P 500 closed 1.9% higher for the week, regaining some of ground lost through February where it declined by 2.6%. There were a number of important economic reports in the week, however their mixed nature meant there was a lack of noteworthy catalysts for performance. The Institute for Supply Management's (ISM) manufacturing Purchasing Managers' Index (PMI) came in higher in February at 47.7 (previously 47.4) and was slightly ahead of median forecasts of 47.6. It does, however, remain in contraction territory, as levels below 50 indicate slowing activity. The ISM's services PMI fell slightly to 55.1 (previously 55.2), but came in above median forecasts of 54.3 and remains in modest expansion. The most surprising data point of the week was the 8.1% jump in pending home sales in January (previous month 1.1%), far ahead of median forecasts of 0.9%. Lawrence Yun, chief economist at the National Association of Realtors' attributed the jump to the dip in mortgage rates over the new year and indicated that "home sales activity looks to be bottoming out in the first quarter."
Stocks featured:
Aston Martin Lagonda, Persimmon and Rightmove
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Global equity markets experienced slight declines over the week, with share prices stagnating from the market rally which began in October. In fixed income markets, yields broadly increased amid further anticipated interest rate rises and this put downward pressure on prices. This has also negatively impacted residential property with increased mortgage costs leading to price declines for the fifth consecutive month, according to Nationwide’s latest figures...
Stocks featured:
HSBC, Howden Joinery and Rolls-Royce
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The UK’s FTSE 100 index broke through the 8,000 barrier for the first time last week, carrying on its momentum since the start of 2023. However, we should not lose sight of the fact that the FTSE 100 does not really represent the overall UK economy, as it is, of course, heavily weighted towards BP, Shell, mining stock and banks. All of which are benefiting from the reopening of China and likely resource demand that will come from that. To put it in perspective, the FTSE 100 stood at 6,335 on 30 January 2001 and its capital return over this period has been 26%. It is very welcoming to see the FTSE 100 at this level, however it is by no means a reflection of either the UK or global economy...
Stocks featured:
Barclays, Centrica, Dunelm Group and Hargreaves Lansdown
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Improving Global Purchasing Managers’ Index (“PMIs”) data and a much better-than-expected employment report have recently given investors new confidence that the economy can avert a near-term recession, boosting market sentiment and stock prices. Meanwhile, the US Federal Reserve (“Fed”) has remained largely steadfast in its hawkish messaging, increasing the likelihood of additional 0.25% rate hikes in both March and May. However, the major benchmarks ended lower in a week with relatively few important economic releases or other concrete drivers of sentiment. Sector performance was relatively uniform within the S&P 500 Index, with energy stocks being the notable upside outlier and communication services shares the prominent laggard...
Stocks featured:
Adidas, Alphabet and Walt Disney Co.
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Newsflow over the past week was dominated by Central Banks as they continued to tighten monetary policy in their ongoing fight against inflation. Perhaps most importantly for global markets, the US Federal Reserve ("Fed") increased its funds rate by 0.25% to a target range of 4.5 - 4.75%, marking the 8th increase (albeit the smallest rate of increase) since March 2022. The Bank of England and the European Central Bank both read from the same script and followed suit, each raising their benchmark lending rates by 0.5% (to 4.0% and 2.5% respectively)...
Stocks featured:
Amazon, Apple and BT Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Warren Buffet compared the stock market to a voting machine and a weighing machine in a letter to Berkshire Hathaway shareholders back in 1987. In the short term, it can be influenced by ever-changing public opinion. But like a weighing machine, over the long term, what truly matters is the concrete, measurable financial results that determine its true value. This idea is relevant to the current situation, where the market is off to a great start for the year; perhaps as a consequence of market participants placing too great a vote of confidence in better-than-expected GDP data and an over-sensitivity to the annual pace of inflation cooling...
Stocks featured:
Diageo, Intel and J Sainsbury
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Equity markets delivered mild returns, despite an array of poor economic data announcements. Bond yields were also relatively flat leading to minor price changes with weakening conditions justifying potentially lower interest rate hikes across multiple developed economies.
Figures released from the Office for National Statistics revealed further falls in retail sales by 1% in December as struggling consumers cut back their spending. UK house prices also recorded a sharp decline over the same period according to the latest Royal Institution of Chartered Surveyors survey. This was a reflection of a challenging environment for new buyers following increasing mortgage costs and heightened economic uncertainty...
Stocks featured:
Alphabet, Amazon, Dignity and Microsoft
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Equity markets broadly experienced another positive week with the FTSE 100 rising 1.7% over the period, to reach a near all-time high. Investors eagerly awaited the results from the latest US inflation figures which revealed a fall to 6.5% from 7.1% the previous month, in line with expectations. This was the sixth consecutive fall in CPI inflation driven largely by declining oil prices. This helped strengthen the trend that falling prices would persist and reduced the pressure on central banks to tighten monetary policy through interest rate hikes. The announcement helped drive bond yields lower which had a positive impact on prices...
Stocks featured:
Card Factory, Direct Line and ASOS
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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The markets ended 2022 on a high note, following what has been a very tough year for investors. The continued rise of inflation has ultimately led economies into a "once in generation" macro-economic cycle, of the kind last seen in the 1970s. There was a huge sell off in growth assets and fixed interest, to the extent that low risk investors generally performed worse than medium/high risk investors. Whilst we are far from out of the woods, inflation does now seem to be falling across most of the world and, although most central banks remain relatively hawkish on policy, there is an industry consensus that interest rates may not need to go as high as once predicted...
Stocks featured:
Anglo American, Antofagasta, B&M, Glencore, Greggs, Next, Rio Tinto Group and Shell
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The week started well enough, with the publication of American data showing that the pace of inflation had decelerated more than expected in November. US petrol prices had fallen during the month, while food and rent inflation both moderated. Investors were jubilant all over the world. This was the long-awaited evidence that inflation had peaked, and markets seemed set for an easy run-in to the end of the year. The “Santa rally” was on.
Not for the first time this year, however, central bankers sent markets into a tailspin, although this time it was a one-two punch from the US Federal Reserve and, the following day, the European Central Bank. The Fed raised interest rates by 0.5% as expected, but the tone of Chairman Powell in the press conference afterwards was particularly aggressive towards inflation and unsympathetic to markets. Powell focused on the labour market in his comments, which is still growing robustly, rather than other, weaker aspects of the American economy. Not only did the Fed raise its expectations for where interest rates will end up, but the strong degree of unanimity from the members of the governing committee surprised investors. Moreover, the committee raised its expectations for the trajectory of inflation, confounding economic forecasters who had just witnessed the rate of inflation begin to decline...
Stocks featured:
Babcock International, LVMH, Nucor Corp, Steel Dynamics, Tesla, Twitter and US Steel
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Lacking the kind of economic data or central bank decisions that have moved asset prices recently, markets mostly drifted sideways or slightly lower during the week. As a result, most asset classes have been able to hang onto their recent gains. This rally has now lasted for two months, having been initially triggered by the expectation, subsequently proved correct, that central banks would slow the rate of increases in interest rates. That presumed a peak in the rate of inflation - which duly occurred, giving the rally yet more impetus...
Stocks featured:
Apple, Chevron Corp, Exxon Mobil Corp, Taiwan Semiconductor Manufacturing Company and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
The markets were again driven by hopes of an easing in interest rate policy at the US Federal Reserve, as Fed Chairman Powell appeared to soften his stance in a speech in Washington DC last week. US government bonds had another good week. Their yields have been on a declining trend now for almost two months and, globally, other government bonds have mostly moved in lockstep with the US. Global stock markets were also willing recipients of the news. The S&P 500 is now down 17% for the year to date, but most of that decline has been caused by the technology sector. The more old-economy constituents of the Dow Jones Industrial Average are down only 6% for the year, not far off their European equivalents...
Stocks featured:
Apple, DoorDash, Eli Lilly & Co, Tesla and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Hosted on Acast. See acast.com/privacy for more information.
Markets continued to demonstrate resilience last week despite an accumulation of problems in China which threatened to undermine sentiment. Along the way, investors were cheered by European business activity surveys that were significantly better than expected, leading to comments by some optimistic investment strategists that any recession is likely to be relatively shallow. This view may be coloured by the 20% rebound in markets from their recent lows, however, and a cohort of dismal economists were quick to emphasise that business activity is still shrinking. Though inflation appears to have peaked in the US, and is expected to have already peaked in Europe, it’s too early to say that consumers will start to spend again. For a start, they may not have the financial resources: higher living expenses, even if they are rising at a less rapid rate, are still negative for economic growth. Given our meagre experience of inflation over the past few decades, it’s difficult to say how much consumers have already been impacted by inflation and how much of that impact is still to be reflected in their behaviour...
Stocks featured:
Ant Group, Apple, Manchester United and Walt Disney
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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In a relatively light week for economic data and company updates, markets broadly managed to hold onto the momentous gains of the previous week. Coming so soon after last week’s relatively benign US inflation data, the week got off to a good start with a deceleration in US producer price inflation, which should ultimately feed through into lower inflation in the prices of goods for consumers. What investors really want to know, however, is whether the more positive outlook for inflation will influence governors at the US Federal Reserve into slowing the pace of increases in interest rates. Despite an unusually large number of governors speaking at conferences and in interviews during the week, investors were left with the feeling that opinions are still divided between those who prioritise defeating inflation at any cost, and those who are becoming more cognisant of an economic slowdown...
Stocks featured:
Alibaba Group, Cisco Systems, Hasbro, Mattel, Siemens and Target Corp.
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Nearly all the price action in markets last week came in a burst of euphoric demand following the publication of relatively benign American inflation data. US inflation fell from 8.2% in September to 7.7% in October, with the details revealing that inflationary pressures were easing across the board: the pace of inflation decelerated in the property and service sectors between September and October, and there were outright declines in the cost of used cars, rent, clothing and household furnishings. One data-point does not constitute definitive evidence and, more broadly, current economic data confirms that a slowdown is underway but, nevertheless, this was enough to send markets into an epic rally. Expectations for interest rate rises in the US dropped like a stone, along with the safe-haven US dollar. US government bonds surged across the board, and five-year bonds enjoyed their biggest one-day gain in a decade. The S&P 500 stock market index had one of its best days since the start of the pandemic, rising by 5.5%. The technology-heavy Nasdaq index, which had been beaten down by the fear of rate rises, rocketed by over 7%. European stock markets surged in sympathy: the Euro Stoxx 50 index had gained over 3% by the end of the day and the UK-orientated FTSE 250 gained nearly 4%...
Stocks featured:
ASML Holding, Burberry, Disney, Hermes International, LVMH, Richemont and Taiwan Semiconductor Manufacturing Co.
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Monetary policy and economic data were in the driving seat last week, with both the US Federal Reserve and the Bank of England scheduled to announce monetary policy decisions. The Fed raised the possibility of a slowdown in the pace of interest rate rises, adding new language to its statement on monetary policy to the effect that it would consider the cumulative impact of rate rises on the economy when setting rates. This was hardly the “pivot” towards more dovish monetary policy that markets were hoping for, but it was enough to unleash a rally. Unfortunately, the rally lasted all of half an hour, by which time Fed Chairman Powell’s press conference had squelched any optimism, saying that rates were actually likely to go higher than expected, even if they went higher in smaller increments...
Stocks featured:
Airbnb, Apple, GSK and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Stock markets ran the gauntlet this week of some weak financial performance from the technology industry, as well as disappointing economic data, but without sustaining much damage. In fact, the resilience of markets to bad news raises the possibility that the recent bottom could mark the end of the current bear market.
This hope is dependent on central banks softening the tone of their comments on interest rate rises, examples of which were in evidence twice during the week. The Bank of Canada increased rates by 0.5% rather than the 0.75% that markets had expected, and noted that past rate rises were beginning to affect household spending and housing markets. More importantly, the European Central Bank met expectations with a 0.75% rate rise but hinted that a slowdown in the pace of tightening is imminent with the comment that "substantial progress" has already been made towards tighter monetary policy.
Stocks featured:
Alphabet, Amazon, Apple, Caterpillar, Coca-Cola, Mastercard, McDonald’s, Meta Platforms, Microsoft, Unilever and Visa
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Stock markets managed to build on their rally of the previous week as the flow of news turned from unremittingly bad to merely “mixed”, and the steady drumbeat of company profit warnings was occasionally drowned out by some surprisingly upbeat reports. Stock markets were even able to shrug off another dismal performance by bond markets, helped by a relatively steady week for the US dollar.
Stocks featured:
- Netflix
- LVMH
- American Express
- Apple
- Microsoft
- Alphabet
- Amazon
- Meta Platforms
It was a turbulent week for markets and British politics. On 14th October Kwasi Kwarteng was sacked as the Chancellor meaning he was the second shortest serving Chancellor in British history at 38 days. He was replaced by Jeremy Hunt who swiftly announced a reversal of the majority of the tax cuts previously outlined, helping to bring nominal yields down on government bonds and restore some calm to financial markets. Following the mini-budget on 23rd September, where the prospect of a large surge in government borrowing on the back of the announced spending increases and tax cuts, the UK markets had been extremely volatile. Nominal yields on government bonds surged with the 30 year gilt yield crossing 5%, the pound fell and equity markets had seen high volatility. After being down just over 2% during the past week markets rebounded on first the rumour and then confirmation of Kwarteng’s sacking to finish 17th October broadly flat.
Stocks featured:
ASML, Goldman Sachs, Hargreaves Lansdown, Johnson & Johnson and Moneysupermarket
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Stock markets started the week brightly enough, with a two-day rally as good as any since the start of the pandemic. But it was not to last, as OPEC dealt a blow to investors outside the oil sector, and to consumers battling inflation, by opting to cut oil production by two million barrels a day. This was enough to trigger a rally of nearly 10% in the price of oil. The decision came despite frantic lobbying by US officials and a visit by President Biden to Saudi Arabia in July. Some commentators viewed this as a weaponisation of oil prices amidst an energy power struggle between America and Saudi Arabia, and the US government described Saudi Arabia as having chosen to align itself with Russian interests.
Stocks featured:
Advanced Micro Devices, Imperial Brands, Intel Corp, Levi Strauss & Co and Samsung Electronics
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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It was a week of unremittingly bad news that sent stock and bond markets to new lows for the year. The week opened with the furore over the government’s mini-budget still rippling through markets. British banks withdrew mortgage offers in response to the volatile environment for interest rates unleashed by the mini-budget and, in an unusual sign of international frustration, the mini-budget drew criticism from the International Monetary Fund, US central bank officials and the US government.
Events reached a climax when the Bank of England stepped in to prop up the market for British government bonds. Having approved a plan to relinquish £80 billion of gilts just a few days previously, the Bank dramatically reversed direction with a commitment to purchase another £60 billion. A £140 billion U-turn does not happen without good reason, and it subsequently turned out that the collapse in gilts threatened the stability of pension funds worth about £1 trillion, which were faced with the prospect of having to sell assets in order to remain solvent. These sales would have further depressed asset prices, prompting another loss of confidence in the gilt market and a potential downward spiral in British assets. The Bank’s intervention did the job, stabilising the gilt market and helping the pound to recover most of its lost ground. The fact remains, however, that the enormous UK pension industry has somehow managed to commit itself to strategies that could, under admittedly very unusual conditions, prompt a vicious circle of selling.
Stocks featured:
Apple, BHP Group, Boohoo Group, H&M, Next, Nike, Porsche and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Markets were already enduring a torrid time when the British government dropped its fiscal bomb on Friday. Earlier in the week, the US Federal Reserve had raised rates by 0.75% as expected, but there was no let-up in the hawkish tone as the Fed simultaneously cut its growth forecast and lifted its own expectations for future interest rates. Once again, the Fed is signalling that it is ready to tolerate a recession in order to combat inflation. This has been the message for a while, but markets are now repricing how far the Fed will go, and how deep any recession might be.
Stocks featured:
Deutsche Bank, Credit Suisse, Ford Motor Co., JD Sports Fashion and Unicredit
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Bad inflation data from the US wiped out a promising, four-day rally with such violence that new lows for the year are looming for many assets. US inflation fell to 8.3% in August from 8.5% in July, a decline to be fair, but not the decline the market was looking for. In fact, aside from the expected moderation in food and fuel prices, there were hefty gains in goods and services as diverse as new cars and trucks, vehicle repair, dental charges and hospital services. Some optimists had been hoping for signs that inflation would soon roll over: the hope was margins would fall from their current, unsustainable levels as supply chains normalise; the strong dollar and lower inflation outside the US, especially in China, would wear down import prices; rent inflation would follow the sharp drop in house prices and rents downwards, and a gradual moderation in wage gains would reduce inflation across an array of services that are sensitive to labour costs. While few doubt the logic of this reasoning, which applies both in the US and elsewhere, the inflation figures pushed out the date that this normalisation will commence. In the short-term, meanwhile, any chance of a 0.5% hike at this week’s Federal Reserve meeting has gone.
Stocks featured:
Amazon, Apple, Fedex Corp, Starbucks and Uniper
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Stock markets broke their losing streak with impressive rallies across-the-board globally, despite more tough talk by central bankers and the absence of a recovery in bond markets. European stock markets recovered all their losses caused by last week’s total suspension of natural gas supplies from Russia to Europe and, counterintuitively, European gas prices have actually declined by nearly 50% since then. American petrol prices, meanwhile, fell to their lowest levels of the past six months.
Stocks featured:
Alphabet (Google), Apple and Oracle
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Capital markets continued their decline in the wake of the US Federal Reserve chairman’s speech of the previous week, with the pain spreading across a wide range of asset classes. US stockmarkets failed to muster any kind of rally but, at least, they are still well above the lows reached in June. European stockmarkets, on the other hand, are retesting their lows of the year, following news that Gazprom had ceased natural gas supplies to Germany entirely. This was not wholly unexpected, but it does add to the crisis in energy markets and to the threat of higher inflation for longer. The realisation that energy bills are going to spiral upwards yet again has governments in Europe rushing to abandon free markets and impose fixed price-regimes. The implied subsidies are enormous - £130 billion in the UK if Prime Minister Truss’ new plan gets the go-ahead, equivalent to about one third of total government spending on the pandemic. European governments meet at the end of the week to outline their latest thinking, but the current range of aid packages already amounts to EUR375 billion. With such large numbers at stake, windfall taxes on the utility sector are very much on the agenda.
Stocks featured:
Addentax Group Corp, Hewlett Packard Enterprise Co, Dell Technologies, Pernod Ricard, Polestar Automotive Holdings, Seagate Technology Holdings and Volvo
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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There was a lot to digest after a speech by the US Federal Reserve Chairman at a conference sent stock markets into a tailspin, but it was less the contents of the speech than the reaction of the markets that raised questions. For several months, now, central bankers in the western world have been explicit about prioritising inflation over economic growth. Chairman Powell’s speech made this same point, although perhaps with a tone of exasperation that had been missing before. Chairman Powell made it clear that the decision on whether to raise rates by a further 0.75% next month, or to drop to 0.5%, had not yet been made, but he also played down the idea that the softer recent inflation numbers would justify any change in course. This was exactly in line with comments he made in June that the Fed would need to see a clear run of lower monthly inflation data for it to change course.
Stocks featured:
Dell Technologies, Nvidia, Porsche and Salesforce
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
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Markets hit the buffers this week following two months in which they had mounted an improbable rally in the face of deteriorating economic data. It took only a few trading days for continental European stock markets to give back a third of the gains accumulated during the rally. American markets followed Europe down, with the technology-heavy Nasdaq Composite Index leading the way, albeit after an impressive 23% rise from trough to peak. Once again, the FTSE 100 was the best performer, sustained by its unique mix of global pharmaceutical, mining, banking and energy companies. Unfortunately, the same did not apply to the more UK-focused FTSE 250, which suffered a 4.3% decline on the week. Bond markets resumed their downward spiral with US 10-year government bond yields back above 3% and 10-year gilt yields surging back towards their highs of the year. The US dollar resumed its safe-haven status, with the pound and euro dropping to new lows for the year. As you were, then.
Stocks featured:
Bed, Bath & Beyond, BHP Group, Home Depot and Walmart
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets managed another week of gains, extending the rally in American indices to two months. This has encouraged a hint of euphoria to develop, which has been reflected in the rise of cryptocurrencies, meme stocks and, of course, the technology sector favourites. Judged by the strength and breadth of the rally, and the fact that a lot of bad news has been absorbed on the way up, some analysts are calling this the end of the bear market. Their optimism was somewhat confirmed last week when investors witnessed a rare decline in US inflation data for the month of July. This was seized on as evidence that inflation has now peaked, enabling the rally in asset prices to continue. In another positive development, a survey of US consumer confidence showed a surprisingly strong uptick and bounced off its readings of the previous few months, which had been the lowest in the survey’s 70-year history. Bad news was shrugged off, such as the startlingly poor business activity surveys for the Mid-West and East Coast, as US stocks produced an especially strong week. The S&P 500 index has now recouped more than half its declines since the year began.
Stocks featured:
GlaxoSmithKline, Sanofi, Saudi Aramco, Six Flags Entertainment and Walt Disney Co.
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
It was another week in which stock and bond markets rose, overcoming worrisome news about inflation’s impact on the economy. The case for bonds is straightforward: the robustness with which central bankers are hiking rates has persuaded bond investors that they can bring inflation under control, even if it means causing a recession. Recessions are not necessarily bad for bonds and, after a historically big sell-off, valuations are much more attractive. The case for stock markets is not so simple: higher bond valuations do make equities more attractive by comparison, but equities have still to run the gauntlet of further inflation and interest rate rises, their combined impact on consumer spending and, more importantly, on corporate profits. It was remarkable that equities managed to continue their rally of the past month because the week’s data failed to offer much support in these respects.
Stocks featured:
- Apple
- Amazon
- Samsung Electronics
- Meta Platforms
- Shopify
Stock markets showed impressive, some would say heroic, resilience in the face of another week of largely bad news. Europe was again at the centre of a geopolitical maelstrom, as fears grew that the Nord Stream natural gas pipeline from Russia to Germany, which had been closed for maintenance, might not re-open. Gazprom, the pipeline’s operator, certainly gave that impression when it invoked force majeure clauses in its contracts with European buyers. There were even rumours that European Union officials had begun to plan for voluntary rationing, with a 15% cut in natural gas usage being proposed to member states. As the week went on, Gazprom did eventually resume supplies, but at a much lower rate of flow, and public remarks by Russian President Putin made it clear that the pipeline will remain a geopolitical hot potato.
Stocks featured:
- IBM
- Netflix
- Snapchat
- Meta Platforms
- Alphabet
- Verizon Communications
- AT&T
- Walmart
Stock markets managed to end the week roughly flat, despite the announcement of dreadful inflation data in the US that threatened to derail the current, month-long bounce. There was little to be positive about in the data: US inflation leapt to 9.1% in June from 8.6% in the previous month, far surpassing most expectations. Fuel and food did most of the damage but, excluding these more-volatile components, the so-called "core" rate of inflation also beat expectations as rent and second-hand car prices accelerated again. The only silver lining was that core inflation continued to fall from its peak in March.
Stocks featured:
Apple, Burberry Group, Citigroup, JP Morgan Chase and Volkswagen
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
A bounce in equity markets had been overdue, and was duly delivered, with the US technology sector leading the way. Investors were initially somewhat cheered by an American service industry survey that showed only a slight reduction in activity from the previous month, bucking the trend from other nations for much larger declines. More importantly, the minutes of the US Federal Reserve’s last meeting did not derail the rally, despite demonstrating plenty of determination to fight inflation combined with precious little concern for the weakening economy. Thanks to recent downward revisions to economic data, it’s possible that America is already in recession, but the Fed’s minutes seemed to emanate from a different dimension, stating that “overall economic activity appeared to have picked up”. The minutes referred to inflation as being “more persistent than they had previously anticipated”, ignoring the recent reduction in so-called “core” inflation, which strips out less-controllable items such as food and energy. In summary, there were suspicions that the Fed may have cherry-picked data to support its current, aggressively anti-inflation policy. But that stance seems to please equity markets, which continued their rally on the day the minutes were published, though bond markets reversed their recent strong run.
Stocks featured:
ASML, EDF, JPMorgan, Nikon, Tesla and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
It was a week in which market behaviour began to shift away from fear of interest rates rises towards fear of recession. This was most evident in a recovery in government bond markets where, at the short maturities that most clearly reflect the expected path of interest rates, a dramatic shift could be seen. In the blink of an eye, seemingly, investors have shifted from being convinced that the US Federal Reserve will do multiple rate-rises, to being convinced that softening global growth will soon translate into weaker inflation, putting the Fed on hold. Markets are even now pricing in 0.75% in rate cuts in 2023. Bond values were driven upwards by a series of poor economic data, including more declines in consumer confidence around the developed world and an American survey of manufacturers that indicated a rapid decline in activity.
Stocks featured:
Airbus, Boeing, Carnival Corp and Micron Technology
To find out more about the investment management services offered by Walker Crips, please visit our website:
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This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
The previous week’s rally in US government bond markets, that may have heralded a change in sentiment towards the Federal Reserve in its fight against inflation, was repeated around the world. British government bonds followed their US brethren upwards after the release of UK inflation data that showed a surprising decline in so-called core inflation, which excludes more volatile components such as food and fuel. Eurozone sovereign bonds then had their own rally after the release of business activity surveys for the Eurozone that indicated a sharp slowdown in growth and, therefore, in inflationary pressures.
Stocks featured:
Asos, Boohoo Group, Deutsche Bank, Li Auto, Nio, Tesla, XPeng and Zalando
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
The bad news is that stock markets slipped again last week. The good news is that things could have been much worse, with a fairly modest move down despite the US Federal Reserve raising rates by 0.75%, its biggest hike in 30 years. The Fed is following through on tough talk over the past few weeks, and Chairman Powell made it clear, repeatedly, that the Fed won’t stop hiking until it sees a clear run of lower monthly inflation data. The 0.75% move had been widely leaked in what appeared to be a choreographed media strategy. Nevertheless, it did the job, and the US government bond market actually had a good week, hinting that perhaps the US central bank has regained some of its lost credibility.
Stocks featured:
Apple, Halfords Group, Kroger, Starbucks Corporation and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Movements in capital markets are increasingly being driven by two economic factors, inflation and interest rates, that are beyond the ability of individual investors to control. While a particular company’s prospects still matter, as evidenced by the impact of recent profits warnings in the retail sector, changes in portfolio values are more likely to reflect the latest news on rising prices, the reactions of central banks through interest rate policy, its likely effect on the economy and, ultimately, on corporate profits.
Stocks featured:
Exxon Mobil Corp, Intel Corporation, Meta Platforms (formerly Facebook) and Target Corp
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Skittish stock markets struggled to maintain the positive momentum of the previous week and, following a barrage of bad news, it’s beginning to look like the previous week may have been the aberration. The week started with an outsized jump in Eurozone inflation in May, to 8.1%, and the fact that the announcement of this data coincided with the announcement of the European Union’s embargo on Russian oil was not helpful. It also didn’t help that a bunch of American corporate chieftains ambushed markets with dire warnings about the state of the economy. Among them was the much-respected Chief Executive of JP Morgan Chase & Co, who warned of an impending economic "hurricane". Fears of stagflation intensified, stock markets struggled for a couple of days and investors fled to the safe haven of the US Dollar.
Stocks featured:
Didi Global, HP, JP Morgan Chase & Co, Salesforce, Target, Tesla, Twitter and Walmart
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Having been rocked by a profit warning from retailing giant Walmart in the previous week, stockmarkets shrugged off the fear of recession and managed an impressive rally. America led the way, with the major indices there bouncing nearly 10% off their recent lows. European markets had already been outperforming but, nevertheless, enjoyed the additional tailwind. Indeed, it was a week in which just about everything was up. Even bond markets staged a recovery: corporate bonds across the globe had their first positive month in nearly a year, and government bonds had their best month since the start of the year.
Stocks featured:
- Apple
- Dollar Tree
- The Gap
- Southwest
- JetBlue
- Tesla
The week started promisingly enough, with the most hawkish comments yet from the US central bank failing to disrupt equity, bond or currency markets. In an interview with the Wall Street Journal, Federal Reserve chairman Powell said something that central bankers have not had to say for decades: that the Fed intends to raise rates until they slow economic growth, and that they are prepared to risk higher unemployment. He even raised the prospect of faster, more aggressive interest rate rises than the half-percent a month currently expected. That markets were unfazed by his comments was a rare moment of stability, but it was not to last...
Stocks featured:
Burberry Group, Cisco Systems, Richemont, Snap, Target Corp and Walmart
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
UK and continental European stockmarkets managed to bounce last week, but it was cold comfort after the declines of the last month or so. American markets could not follow suit, and weren’t helped by another shock from the monthly US inflation data. Nothing has yet appeared to alter the picture of persistent inflation and slowing economic growth. In recent weeks, economists have taken a hatchet to their US economic growth forecasts, having already done that for their European forecasts earlier in the year.
Stocks featured:
Apple, Goldman Sachs, Saudi Aramco, Sunac China Holdings, Tesla and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Summary:
The past week saw the US Federal Reserve (Fed) do exactly as markets expected as it increased its benchmark interest rate by 50 basis points (to a range of 0.75% - 1.0%), constituting the biggest single increase in US borrowing costs since the year 2000. The Fed also announced plans to reduce its gargantuan $9 trillion balance sheet. In June, July and August, The Central Bank plans to reduce its stock of Treasury Securities and Mortgage Backed Securities by a combined total of $47.5 billion per month, then from September onward by a combined total of $95 billion per month.
Stocks featured:
Airbnb, Lyft, Shopify, Uber and Under Armour
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Volatility in stock markets was back to its post-pandemic peak last week, with the mighty S&P 500, the world’s largest stockmarket index by value, falling by 2.8% on Tuesday, only to rise by 2.5% on Thursday, before selling off 3.6% on Friday. So much of the value of the S&P 500 is now concentrated in a few technology behemoths that their fate determines its fate. Thursday’s rebound had much to do with unexpectedly strong results from Meta Platforms (formerly Facebook) amongst others, and Friday’s sell-off appeared to have been triggered by disappointing results from Alphabet and Amazon, combined perhaps with the negative outlook expressed by Apple’s management. However, these problems were mainly related to the pandemic’s distortion of supply and demand. Alphabet reported a deterioration in demand from customers in Europe, but this should be seen in the context of a quarter in which Alphabet’s revenues still grew at a 20% rate.
Stocks featured:
Amazon.com, Apple, Alphabet, Chevron Corporation, Exxon Mobil Corp, Meta Plaforms, Robinhood Markets and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
A lacklustre week for stock markets was dwarfed by another wave of panic in bond markets, as the US central bank turned up the volume on its inflation-fighting rhetoric. A two-year US government bond now yields about 2.7%, and yields have only been higher than that once since before the Credit Crunch. US government bonds have now had their worst start to a year since the early 1970s. Bond markets crumpled under the onslaught from federal reserve officials: one governor advocated for a rate rise of 0.75% at the next meeting, and several others were heard to endorse the idea of 0.5%. This was subsequently reiterated by the Federal Reserve's Chairman, who also upset markets by describing the American labour market as being "unsustainably hot".
Stocks featured:
Netflix, Tesla and Walt Disney Co
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets initially threatened to continue their advance, before retreating to end the week lower. The initial setback was the US Federal Reserve or, more specifically, the written minutes of a Federal Reserve meeting that took place four weeks ago. Such is the scrutiny being applied to the change in interest rates by the Fed that the market was falling even before the minutes were published, and continued to fall afterwards even though they merely confirmed what was telegraphed at the meeting itself. Perhaps investors needed to see it in writing, such is the poor state of the Fed’s credibility. The technology- heavy Nasdaq Composite Index managed to decline by 8% from peak to trough during the week, and most equity indexes around the world followed to different degrees. These market characteristics were reminiscent of the start of the year, when a violent rotation sent growth stocks tumbling and stodgy, value stocks in hitherto unfashionable sectors soaring. The latter description fits the FTSE 100 very nicely, and it managed a 1% gain for the week, supported by banks, oil companies and pharmaceuticals.
Stocks featured:
Berkshire Hathaway, Hewlett Packard, JD.com, Occidental Petroleum and Volkswagen
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets largely completed their recovery from the Ukraine-war sell-off last week. However, not all markets are equal,
with the very large companies comprising the S&P 500 stock market index and the FTSE 100 comfortably beating the
performance of their continental European peers, and with smaller and mid-sized companies languishing everywhere. In the
Far East, Japan’s Nikkei index has fared relatively well, and joins the lucky group of blue-chip indices which are down only a few
percentage points for the year to date.
Stocks featured:
Apple, Tesla and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets continued to enjoy the post-Ukraine rally last week, with notable enthusiasm for all things American and, especially, American technology stocks. Also coming back into favour are some speculative favourites, including cryptocurrencies. Recent announcements of stock splits by American technology companies have been greeted with extremely outsized responses, despite the fact that they generate zero economic value to shareholders. Alphabet (Google) enjoyed a $130 billion boost to its market value on the day of the announcement, Amazon saw an $80 billion boost for its stock split and, most recently, Tesla an $84 billion boost. Perhaps this simply reflects the fact that American retail buyers still have plenty of firepower, as they have been a constant positive for markets since the start of the year, even continuing to pour money in throughout the Ukraine crisis. The other constant positive has been stock buybacks by American companies, which are running at all-time highs. Unfortunately for investors, while these factors may support valuations for a while, neither of them contributes to economic growth or the enlargement of corporate earnings. At least the earnings expectations for technology companies have ticked up recently while, for the broader US market, they have remained flat over the last six months.
Stocks featured:
Alphabet, Amazon, Apple, Ford Motor Company, Nikola Corp, NVIDIA Corporation and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets largely completed their recovery from the trauma induced by the conflict in Ukraine last week, and European markets are back to within 5-6% of their pre-war levels. This amount is approximately equal to a year’s return on an equity index, and seems reasonable given the war’s implications for energy consumption and inflation. US markets leapt ahead last week, especially the technology sector, as investors recovered some of their appetite for growth stocks. This also seems reasonable, given America’s distance from the conflict, its relative self-sufficiency in energy and the enormous increase in wealth its citizens have enjoyed during the pandemic. Private sector output in the US is 3.6% above its pre-pandemic level whereas, in the UK for example, it remains 3.5% below. That does not mean that the US is immune to economic wobbles, just that it will probably remain a relative safe haven when compared with other developed-world countries.
Stocks featured:
Alibaba and Saudi Aramco
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
European stock markets recovered some poise during the week, rallying off their Ukraine-war lows, and moving more into line with their American peers. As concerns surrounding the conflict receded, however, fear of inflation increased, prompting bond markets to plumb new lows for the year. This latest move can be attributed partly to the war, which has unleashed a spike in commodity prices, and partly to the latest wave of Covid cases in China, which has prompted the authorities to lock down cities and, in one case, an entire province. These lockdowns threaten to exacerbate supply-chain blockages, boosting production-line inflation in China just after it had begun to decline. Ultimately, this could feed through into more persistent consumer price inflation in the western world.
Stocks featured:
Alphabet, Amazon, Apple, Merck & Co, Pfizer, Toyota, Tsingshan Holding Group and Wolkswagen
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets had their worst week since the depths of the pandemic, with European equity indices particularly hard hit. The blue-chip Euro Stoxx 50 index fell over 10% during the week, and entered official bear-market territory (meaning that a decline of at least 20% from peak to trough has now taken place). It is also now below the levels reached during a brief rally in 2015. US equities have been relatively resilient and, despite declining by 3-4%, ended the week above their year-to-date lows. Being more geographically removed, it seems that US equities are less perturbed by the direct consequences of the invasion itself, but are nevertheless responding negatively to the threat of higher near-term inflation.
Stocks featured:
Grab Holdings, Shell and Volkswagen
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets recovered some poise during the week, but only after having fallen to new lows for the year to date in most regions. The extent of poor performance was roughly proportional to the geographical proximity to Ukraine, with the Euro Stoxx 50 blue-chip index falling 5% early in the week, before recovering to end the week down only 1.5%. The FTSE 100, which had been largely immune to inflation, interest rates or war, suffered its worst day since the start of the pandemic, declining nearly 4%. But it subsequently rallied by nearly the same amount, to end the week down only half a percent. These rallies were all the more remarkable for occurring while the sanctions applied by the West grew to unheard-of proportions, even targeting Russia’s access to the payment system that holds all the world’s banks together. With Russian assets in a Chernobyl-sized meltdown, it’s no wonder Putin was tempted to play the nuclear card, but even this could not derail the rally.
Stocks featured:
Alibaba, Apple, Berkshire Hathaway, BlackRock, Blackstone and Vanguard Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
The stand-off in Ukraine produced a conventional rush for safe havens last week, with bond markets benefiting across the whole spectrum from the additional demand and stock markets wobbling. Precious metals were among the few positive sectors within equity markets and gold, in particular, is now back to its highs of the past year. Traders’ screens were mostly red, however, with travel and leisure, banks and, surprisingly, oil and gas companies among the biggest losers. It would seem that investor fear trumped the ability of banks and oil companies to escape the ravages of inflation, Covid and war, or that investors were taking profits on the most positive performers in their portfolios for the year to date.
Stocks featured:
- Meta Platforms
- Shopify
- Paramount Global
- AMC Networks
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Things were looking up at the beginning of the week, with the previous week’s blockbuster US employment report having given stock markets a confidence boost. By mid-week, with a bounce well and truly underway, it looked like markets might even be making an attempt to reclaim their previous highs. The mood darkened, however, after the US inflation report on Thursday, which showed that inflation had once again outstripped most forecasters’ expectations and was running at its highest level for 40 years. Moreover, the report confirmed that inflation is now spreading from pandemic-affected goods to the broader service economy. Service sector prices had their biggest annual increase in 30 years. As expected, higher house prices are also now feeding into higher rental costs and, as housing is the biggest component of the inflation calculation, its impact is likely to be sustained.
Stocks featured:
- Uber Technologies
- Lyft
- Under Armour
- Walt Disney Co
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
The action switched back from equity to bond markets last week, as a one-two punch of central bank meetings reinforced the hawkish change in monetary policies. This was then followed by a positive shock in key US employment data that sent bond yields spiralling upwards. First up was the Bank of England, which raised rates - as expected - but also tried to send a relatively dovish message, reinforced by the Governor’s plea to markets to “not get carried away”. This messaging strategy didn’t work, mainly because the composition of views and votes on the bank’s Monetary Policy Committee shifted massively towards faster and bigger rate rises. In fact, four of the committee’s nine members had voted for a half-percentage point rate-rise, arguing that it was justified by the acceleration in wages at the turn of the year, and by the recent rise in the public’s inflation expectations. The committee also agreed unanimously to reduce the bank’s holdings of bonds, signifying the change from quantitative easing to quantitative tightening.
Stocks featured:
- Amazon
- Meta Platforms
- Paypal
- Spotify Technology
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Enthusiasts for buying the dip were finally rewarded this week, as stock markets reclaimed some of their lost ground since the beginning of the year. The bounce was broad-based, with the technology sector, smaller-companies and cryptocurrencies all participating to varying degrees. Markets eventually overcame a wobble caused by the US Federal Reserve’s monthly press conference, at which Chairman Powell talked up the possibility of further interest rate rises and confirmed the central bank’s new-found focus on inflation.
Stocks featured:
Caterpillar, Chevron Corp, GlaxoSmithKline, Shell, Tesla, Unilever and Vodafone
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Bond market investors were, no doubt, delighted to pass the baton of extreme volatility to equity markets last week, but the
theme continues to be the same: markets themselves are making the headlines, and not in a good way. The technology sector
has taken a pummelling, and the Nasdaq Composite index came within a hair’s breadth of closing below its level of a year ago.
All the sound and fury of the preceding 12 months now signifies nothing. The same is true of the Japanese stock market: a
volatile last 12 months saw, at one point, a rally in the Nikkei 225 index of 13.5%, which has now all been given back. Even the
more-stately Dow Jones Industrial Average has fallen to a level last seen in April last year.
Stocks featured:
- Ganfeng Lithium
- Netflix
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Once again, the excitement was in bond markets with US government bond yields making new pandemic-era highs. The action was most intense at shorter-term maturities, which are now pricing in four rate rises in the next 12 months. Coming alongside hawkish comments from US Federal Reserve governors, the moves anticipate that containing inflation will require more concerted action on rates, and sooner. The narrative that inflation would be temporary, spun by central bankers for much of the last year, now lies trampled in the dust.
Stocks featured:
EDF, JP Morgan, Meta Platforms (Facebook), Toyota Motor Corp and Volkswagen Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Volatility was the name of the game over the festive season, with both stock and bond markets on roller coaster journeys. In truth, some drama is probably to be expected given the size of the upward moves in asset prices since the pandemic started. Stock markets in particular had been unexpectedly calm given a quadrupling of the rate of inflation, a crisis in the Chinese property market, and continued waves of the pandemic undermining the high hopes for vaccination programmes.
Stocks featured:
Amazon.com
Ford Motor Company
Rivian Automotive
Tesla
Toyota Motor Corp
Volkswagen Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Hopes for a quiet end to the year for equity markets were upended by an accumulation of negatives that put an end to the post-Omicron resurgence. The culprits included Omicron itself, central banks plus a senator from West Virginia. The week started on a sour note when Sinovac, the Chinese Covid vaccine, was found to be relatively ineffective against Omicron – a result that has been reinforced by subsequent tests. This makes it very unlikely that China would be able to alter its zero-tolerance approach to Covid even if it wanted to, and increases the likelihood of Chinese factory closures, further global supply chain blockages and persistent inflation. Only the previous day, producer-price inflation in the US had risen to a record high for the eighth month in a row.
Stocks featured:
Airbnb
BNP Paribas
Expedia Group
Nike
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock markets completed a fairly solid rebound from the initial Omicron sell-off, but it’s hard to pay much attention to recent performance with so much uncertainty ahead. Omicron is so infectious that, by the end of the next week, its likely trajectory in some countries should be fairly well-established. Although Omicron cases may be milder than previous variants on average, hospitals may still be overwhelmed if Omicron spreads so quickly that even a low rate of hospitalisation generates large numbers of admissions.
Stocks featured:
Amazon, Daimler Truck Holding, Evergrande, Taiwan Semiconductor Manufacturing Co. and Twitter
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Markets were pulled from pillar to post as the forces of Covid and inflation gave battle to investor enthusiasm for buying the dips. Federal Reserve Chairman Powell tempted fate early in the week by announcing an acceleration in the Fed's plan to wind down its $120 billion-a-month asset purchases, when investors were expecting his tone to have softened in the face of the Omicron variant. In the space of a few weeks the Fed has gone from dismissing inflation as being "transitory" to inflation being its main concern. Powell even refused to admit that an Omicron-induced lockdown would reduce inflationary pressures, saying that it merely "increased uncertainty for inflation". As a result, investors now face a hitherto unanticipated scenario where new lockdowns depress growth but, unlike over the past fifteen years, monetary policy actually becomes more rigid.
Stocks featured:
AstraZeneca, Didi Global, Hermes International, Moderna, Pfizer and Universal Music Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Stock market volumes were already thin when news emerged of the Omicron variant, on account of the Thanksgiving holiday in America, exacerbating the sell-off and causing the worst daily decline in more than a year. The European blue-chip Euro Stoxx 50 index fell back to earth with a thud, falling 4% in a day, though the real wonder was how it had kept rising at all given recent European Covid statistics. Having enjoyed a 10% run-up in recent weeks, this index is now back at the levels seen in June. It was a similar story with most stock market indices globally, which gave up several months of gains in a day. The Nikkei continued on its remarkable roller coaster ride, dropping 6% to levels last seen in January. Over the past few months, it has enjoyed a 14% rally, followed by a 9% fall, followed by an 8% rally and now this latest decline, as hopes for the new government’s stimulus programme have fought it out with disappointing economic data. The technology-heavy Nasdaq Composite index again bucked the trend, and had made back most of its losses by the end of the week, as investors anticipated another pandemic bonanza for online businesses.
Stocks featured:
Bank of America Corp., DiDi Global Inc., Alphabet Inc., Moderna Inc., Pfizer Inc. and Uber Technologies Inc.
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Following hot on the heels of last week’s rampant inflation data, US Federal Reserve governors were queuing up to signal a faster withdrawal from the Fed’s $120 billion a month bond-buying programme. The constant drumbeat from one governor after another, including the Fed’s vice-chairman, took a little of the shine off US stocks but ensures that no investor will be surprised when the news is formally announced. The Dow Jones Industrial Average joined the FTSE 100 in being down on the week, and both have fallen about 2% from their recent highs. The technology heavy Nasdaq Composite index has been going in the opposite direction, however...
Stocks featured:
China Telecom Corporation
Cisco Systems
InPost
Macy's
Merck & Co.
Pfizer
Rivian Automotive
Walmart
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Bond markets remained in a feverish state last week, after inflation data again suggested that central bankers are wrong about the risk of rising inflation. US inflation rose to 6.2% in October, its highest level in 30 years. One has to go back to the inflationary era of the 1970s and early 1980s to find a period when inflation was consistently above its current levels. With the prices of cars, rent, furnishings, hospital services and recreation all rampant, it is likely to be at least several months before US inflation recedes. And that forecast relies on a resolution of the many issues dogging supply chains. All these factors increase the risk that consumers begin to anticipate higher inflation, bringing purchases forwards and demanding higher wages to compensate. Few economic forecasters have this as their most likely scenario yet, but several are highlighting the risk.
Stocks featured:
General Electric Company, Johnson & Johnson, Marks & Spencer Group, Rivian Automotive Inc, Tencent Holdings and Toshiba Corp
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
It has become quite common this year for stock markets to reach new all-time highs, and to do so without significant corrections along the way. This pattern was very much in evidence last week, as equities continued their amazing streak following October’s blip. The S&P 500 index rose to an all-time high for the seventh day in a row, and has broken so many records for undiluted optimism this year that market commentators have mostly given up highlighting them. Continental European stock markets were just as bullish, with the benchmark Euro Stoxx 50 index reaching new post-credit crunch highs for seven straight days. While most equity indices in the developed world have fared well over the past month, some have been more equal than others: UK equities have risen, but still significantly lag their pre-pandemic levels. The US stock market is now close to its all-time high in relative performance against the UK, and is trading at a 40% valuation premium, while European stock markets are trading at a 20% premium to the UK, a new post-referendum high.
Stocks featured:
Airbnb, Berkeley Group, Moderna, Peloton Interactive, Taylor Wimpey and Tesla
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Having been a seismic event in capital markets, we should not be surprised that the pandemic continues to deliver aftershocks. It was the turn of bond markets last week, with gut-wrenching rises in interest rate expectations all around the world. Such was the unstoppable momentum that, at one point, investors were able to observe - in real time - the President of the European Central Bank explaining at length why the ECB would not be raising rates anytime soon while, simultaneously, Eurozone bond yields rocketed into orbit. It was like a visit to the Hall of Mirrors.
Stocks featured:
Amazon, Apple, BBVA, BNP Paribas, Ford Motor Co, Nomura and Volvo Cars
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Investors continued to look on the bright side last week but, with persistent inflation becoming an inconvenient truth, it's more the case that every silver lining is now accompanied by a cloud. A new all-time high for the US stock market was only momentarily punctured after the US central bank's Chairman Powell admitted he had been wrong about inflation. "The risks are clearly now to longer and more persistent bottlenecks, and thus to higher inflation" he said and, though he declined to change policy guidance, the change in tone is clear. Bond markets had already arrived at this conclusion, and have been bidding up the prospects for early rate rises for several weeks.
Stocks featured:
Alcoa, Apple, Facebook, Intel Corp and Trump Media & Technology Group
To find out more about the investment management services offered by Walker Crips, please visit our website:
https://www.walkercrips.co.uk/
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Holding two completely incompatible ideas in your mind at the same time has become essential for investors since the pandemic began. It can’t be a good thing that 4.5 million people have died of Covid worldwide but, at the same time, it’s hard to argue that it’s not good to see global stock market valuations up by $30 trillion over the same period. And while it’s been wonderful for investors to have been bailed out by the actions of governments and central banks, it cannot be good that this expenditure - also about $30 trillion as it happens - was entirely financed by government debt and central banks’ money-printing.
Stocks featured:
Alcoa, Bank of America, Citigroup, Deere & Co, Glencore, Goldman Sachs, Kellogg Co, Microsoft, Morgan Stanley and Virgin Galactic Holdings
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
It was a dismal week for forecasts of economic growth as investors grappled with the new reality that, just as governments are reducing Covid-related support for households, their purchasing power is also being squeezed by the surge in inflation. There is a hint of stagflation in the air, and it doesn’t help that the post- lockdown rebound in consumer spending had already failed to meet expectations.
Stocks featured:
Abbott Laboratories, DiaSorin, Merck & Co, Moderna, Nike, Pfizer, Qiagen and Taiwan Semiconductor Manufaturing
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
The credibility of central bankers took another knock last week, as surging costs in the energy sector not only increased estimates for peak inflation, but also prolonged the peaks themselves. It was always the case that the post-lockdown economic rebound would be accompanied by growing pains, but now the growth impetus is fading and the growing pains are taking centre stage.
Stocks featured:
Daimler, Facebook, Mercedes, Merck & Co, Sunac China Holdings and Tesla
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.
Having wobbled the previous week, equities climbed the proverbial “wall of worry”, shrugging off poor economic data, tighter monetary policy and further Chinese discomfort in order to recapture lost ground. European surveys of business activity disappointed expectations, confirming that the post-lockdown boom is over.
Stocks featured:
Evergrande, Google, Nike, Sunac China Holdings, Tesla, Universal Music Group, Vivendi and Warner Music Group
This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.