Mid Week Update Wednesday, 8 July 2015
For more discussion about how the financial markets may affect your own personal or business financial situation, protection, pensions or investments, why not get in touch?: 01276 471083 OR sbgmail@btinternet.com
Update Wednesday, 8 July 2015
As well as the obvious big stories notably Greece China and Barclays other issues and events have figured in today’s focus.
Gulfstream managed magic today with orders from China and other emerging markets setting a new course for them to become the biggest business jet maker by revenue.
So it would appear that despite some kind of meltdown on the China stock market, The outlook of business leaders in China for one is positive and optimistic, giving rise to increased luxury business expenditure on the back of improving sales revenues going forward.
The shortlist for buying Tesco’s South Korean subsidiary grows by one more as buyout firm KKR reinforces its interest in purchasing, improves its offer and re-joins the group of bidders. The sale of the subsidiary Homeplus is part of a wider overhauled by Tesco’s following a pre-tax annual loss of £6 billion, the worst its near hundred-year has seen. South Korea remains Tescos largest international market.
The UK FTSE actuarial index for 15 year gilt yield as at 8 July 2015 is 2.32
The UK government 10 year bond sits at 100.39 with a coupon of 2.00 and yield of 1.96 as at 8 July 2015.
Yesterday marked the first day when commodities were traded completely electronically at the Chicago Mercantile Exchange after about 150 years and generations of traders and brokers dealing and setting prices by “open outcry”. Finally, it all goes quiet “bar the shouting”!
And of course, here in the UK – today is BUDGET DAY. More to follow.
Inflation Target expected to stay in place: 2.0% based on the Consumer Prices Index (CPI)
The Chancellor confirmed in his Budget Speech Wednesday 20th March 2013 that the 2% Inflation target for the Bank of England would stay in place.
The Government’s Inflation Target is announced each year by the Chancellor of the Exchequer in the annual Budget statement. The Bank of England Monetary Policy Committee has as one of its aims, the aim to set interest rates so that over- or under- inflation can be brought back to Inflation Target over a reasonable time period without creating undue instability in the economy. Inflation Target is not a permanently fixed level and may vary depending on prevailing economic and fiscal conditions.
KEY to Important Indeces:
RONIA – Repurchase Overnight Index Average Rate – Launched June 2011
Changes to Method of Calculating Inflation Measurement Index – March 2013
pmL Metal and Precious Metal Pricing used in Market Numbers
lme3 – London Metal Exchange 3 months
[}{] – Denotes a Stock or Share of a FT Global 500 company
xd – Denotes a Stock or Share price quoted as ex-dividend
xc – Denotes a Stock or Share price quoted as ex scrip dividend
Please ensure you read and take note of the disclaimers mentioned here.
Whilst every effort is made to ensure accuracy of the above information, this cannot be guaranteed and cannot be relied upon to be free from errors, omissions or inaccuracies.
This information update is provided for convenience and interest only and is not intended nor does it constitute any form of regulated or other advice and no liability is accepted, nor does any information provided here constitute nor is it intended to be any form of invitation or solicitation or recommendation to buy sell or hold in any capacity and no liability is accepted. You should not use this update as a basis for making decisions.
SewellBrydenGunn (business name and trading style of SCM Finance) and or any of its members employees partners proprietorship or other stakeholders (we) from time to time may or may not have an interest in any items contracts stocks shares securities or other instruments mentioned here. For your own safety and convenience you should always assume that we may have an interest or position in any of the above and consequently you cannot rely on it to be impartial information.
You should confirm independently any information you wish to rely on to make any decisions – in any case you should seek and take appropriate and timely independent financial legal or other advice including full and proper discussions about the level of financial legal or other risk involved before deciding on any action transaction or inaction.
Past performance is not an indicator of future performance. The value of investments and any income from them can go down as well as up and you may get back less than originally invested.
“Secure” “investments” such as Cash on deposit, can provide relative safety to the amount invested or held in this way and can be expected to offer relatively low growth over the medium to long term. They cannot fall in actual value, but can fall in “real” value due to the effects of inflation.
At the other end of the risk scale, “Adventurous” investments (more volatile Equities – Stocks and Shares) carry a relatively much higher risk of capital loss but with the potential for relatively much higher capital growth over the medium to long term. They may be subject to a considerable level of fluctuation in capital value. They do not offer any guarantees.
At the extreme end of the risk scale – Aggressive/Specialist/Highly Speculative – are investments such as leveraged contracts, derivatives, options and futures. Directly investing into these investments carries a very high risk of capital loss, but with the potential for a higher return (or severe loss) over the short the medium and or the long term. They are very volatile and are only suitable for investors who can afford to, and are prepared to, risk the entire capital value and for some investment contracts, risk substantially more than the original capital value, as well as being prepared to take a very active role in managing their investment throughout the day, every day. These types of investment are definitely NOT suitable for the majority of investors since most investors are “passive” once they have made their initial investment – ie they expect to review their investments from time to time but without being actively involved on a daily basis. These investments do not offer any guarantees.
Photo Credit: SBG PhotoStock
cmp¦prm¦lua 201507081426¦abai¦apd1113