Category: Market commentary

Inflation

June CPI inflation figures – maybe interest rates will remain

The CPI for June showed prices flat over the month, whereas prices rose by 0.2% between May 2016 and June 2016. The consensus had been for a 2.9% annual rate, so the 0.3% drop to 2.6% surprised the markets. The CPI/RPI gap widened to 0.9%, with the RPI annual rate now standing at 3.5% (down 0.2% on […]






Market update

China Update

In a week where the City usually heads to the beach for summer, traders were ambushed by a wave of volatility. The previous week’s devaluation of the Chinese yuan was followed by the release of poor Chinese manufacturing data that fueled concerns about slowing global growth. The damage had previously been contained to cyclically-sensitive companies […]






The Markets

There may be potential for a reality television programme starring central bankers and the making of economic policy. It could be called, ‘The Real Central Bankers of the European Economic Community.’ Just imagine the last two weeks’ episodes. Two weeks ago, the Swiss National Bank shocked markets by unpegging its currency and sending the value of the Swiss franc skyward






Investment Advice

Last Week In Switzerland, A Big Mac Cost $7.54

The Economist invented the Big Mac Index in 1986 as an entertaining way to assess whether currencies were at the “correct” levels. The index uses purchasing power parity (PPP) to measure one currency against another. PPP is the idea that exchange rates should adjust so the same product (in this case, a hamburger) has the […]

The Markets

There may be potential for a reality television programme starring central bankers and the making of economic policy. It could be called, ‘The Real Central Bankers of the European Economic Community.’ Just imagine the last two weeks’ episodes. Two weeks ago, the Swiss National Bank shocked markets by unpegging its currency and sending the value […]






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