The World In A Week – When less is more (Italy’s income tax)

Is it possible for a government to increase its total tax receipt by cutting taxes?

Italy’s government believes this is the case and they risked incurring a EUR 3 billion fine from the EU last Tuesday for pursuing it. In the end, the EU abandoned the fine but it remains sceptical of Italy’s approach.

The issue is that Italy’s debt-to-GDP ratio is […]

The World In A Week – An Outbreak of a Truce

The most notable story of the past week was arguably the breakout of a truce in the escalating trade war between the United States and China on Saturday following talks at the G20 meeting in Japan. The outcome was broadly in line with the market’s assumptions for the conference, global equities finished the week down -0.16% in GBP terms while […]

The World In A Week – How low can you go?

The US Federal Open Market Committee (FOMC) kept interest rates on hold last week. Despite an inordinate amount of pressure from Trump to cut rates and elements of US market data signalling a need for loosening of monetary policy, Jerome Powell, Chairman of The Fed, stood firm.

This current situation can only be described as having the key ingredients for a blockbuster movie… not only has the President of […]

The World In A Week – Under Pressure

As the mercury rises in the barometers of economic and political hallways, pressure builds across the globe.  The rhetoric from policymakers at the beginning of the year has begun to wane and with it, sentiment has dropped.  Investors and markets alike need to see significant improvement from a series of geopolitical concerns, which intensified last week.

We begin with the most […]

The World In A Week – The UK / US Alliance

Last week the US and UK commemorated and celebrated their historic alliance and friendship. The week included the rarity of both the D-Day commemorations of World War Two as well as the US President’s State Visit.

Both occasions demonstrated the continuing bond between the two countries. One focused on humanity and the enormous courage and personal sacrifice made to defeat Nazi […]

The World In A Week – Mexican Standoff

Markets faced a tough week as a risk-off environment prevailed. The Pound Sterling fell against all major global currencies. Bond markets rallied across the world, with the Bloomberg Barclays Global Aggregate Index (hedged to GBP) returning +0.63%, while Sterling Denominated Investment Grade Bonds returned +0.27%. Equities suffered across the globe. The MSCI ACWI Index of world markets returned -1.20% in […]

The World In A Week – All By Myself

We have seen an uptick in volatility. Hostilities between the US and China show no signs of abating. The US Federal Reserve minutes indicate that it is unlikely there will be rate moves of any kind for some time and, the UK have no leader, following the tearful resignation of Prime Minister, Theresa May, on Friday. It would be an […]

The World In A Week – Making your mind up

Trump has asked the US trade department to begin the process of raising tariffs on essentially all remaining imports from China, which have an estimated value of $300 billion.  This final myriad of goods will place pressure firmly on the US consumer, a timely reminder that the importer pays the tariff in the shape of higher prices.

The consultation period for […]

The World In A Week – Round 3: Trump thumps China

On Sunday May 5th President Trump tweeted the following:

‘For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods… The 10% will go up to 25% on Friday. 325 Billion Dollars of additional goods sent to us by China remain untaxed, but […]

The World In A Week – A tantrum fit for a princeling

Having advanced strongly for the year to date, with Global Equities returning +12.6%, markets took a breather last week and retreated by -1.1% in GBP terms. This was led by Europe Ex-UK and US Equities, while UK Equities and Emerging Market Equities fared better. Global Fixed Income indices were broadly flat, while the Pound Sterling rose against all major global […]