Over the weekend, commentary by Bank of England governor Andrew Bailey raised the likelihood that the central bank will raise the Bank Rate before year-end. Bailey highlighted that inflationary pressures will force the BoE to act…
Dear Client, There will be no weekly report next week. Instead, we will host our quarterly webcast on Tuesday, October 26 for the US and EMEA regions and Wednesday, October 27 for the Asia Pacific region. We will resume our regular…
According to BCA Research’s Foreign Exchange Strategy service, the pound could relapse versus other G10 currencies in the near term. However, it is likely to fare well over a cyclical horizon. Their 12-month target for GBP/USD…
Highlights UK GDP is on track to overtake pre-pandemic levels. This will strengthen the case for the BoE to tighten monetary policy. That said, markets are aggressively pricing in a hawkish BoE. This creates room for near-term…
The UK economy continued to recover in August. GDP grew 0.4% m/m – 0.1 percentage points below expectations but an improvement from July’s downwardly revised 0.1% m/m contraction. The UK GDP now sits only 0.8 percent…
In his first public comments as the chief economist of the Bank of England, Huw Pill highlighted that “the balance of risks is currently shifting towards great concerns about the inflation outlook.” He also noted that “the…
Highlights Q3/2021 Performance Breakdown: Our recommended model bond portfolio outperformed the custom benchmark index by +8bps during the third quarter of the year. Winners & Losers: The government bond side of the portfolio…
HighlightsThe power shortage in China due to depleted coal inventories and low hydro availability will push copper and aluminum inventories lower, as refineries there – which account for roughly one-half of global capacity – are shut to…
Highlights Monetary Policy: Last week’s numerous central bank meetings across the world confirmed that the overall direction for global monetary policy is shifting in a more hawkish direction. The main reason: growing fears that…
Highlights The Evergrande crisis is not China’s Lehman moment. Nonetheless, Chinese construction activity will decelerate further in response to this shock. Global equities are frothy enough that a weaker-than-expected Chinese…