Providing you with a short summary of events from around the world. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackfinch Group
Monday Market Update

The ever-changing world we live in reinforces the importance
of regular up-to-date communication. This weekly news update from our
multi-asset portfolio managers provides you with a summary of global events
 for your reference and to share with clients.

Issue 111 | 26th September, 2022

UK COMMENTARY

  • A majority of the Bank of England’s nine-member Monetary Policy Committee (MPC) voted to increase the key base rate by 0.50% to 2.25% – its highest level since 2008, after its members judged that the risks of inflationary pressures becoming entrenched outweighed short-term dangers to the UK economy.

  • UK investment markets responded quickly to Chancellor Kwasi Kwarteng’s ‘shock and awe’ mini budget. In the bond market, yields on UK government bonds (gilts) immediately spiked higher on the prospect of a surge in government borrowing.

  • The UK bond market subsequently continued to slump, pushing yields even higher. The two-year gilt yield (which measures short-term borrowing costs) hit 4.5%, double its level in mid-August.

  • The Flash UK Purchasing Managers’ Index (PMI) Composite Output Index, which tracks activity across the economy has dropped from 49.6 in August to 48.4 in September, a 20-month low (any PMI reading below 50 points shows an economic contraction).

  • September’s Industrial Trends Survey from the Confederation of British Industry (CBI) said the difference between UK manufacturers that expect a rise in output over the next three months, and those expecting a fall, dropped from -2% in August to -17% in September.

NORTH AMERICA COMMENTARY

  • The US Federal Reserve (Fed) raised its benchmark into rate by 0.75% to the target range of 3%-3.25%. This pushed US interest rates to the highest level in almost 15 years, as the Fed attempts to rein-in soaring prices in the world's largest economy.

EUROPE COMMENTARY

  • Germany’s private sector came under further strain in September, according to the ‘flash’ S&P Global Flash Germany PMI Composite Output Index. It fell from 46.9 in August to 45.9 in September, as inflationary pressures intensified amid surging energy costs.

  • In a historic move to prevent its energy sector collapsing, the German government agreed to nationalise gas importer Uniper. Under the deal, Germany will buy Finnish group Fortum’s stake in Uniper for approximately €480m and inject a further €8bn to stabilise the company.

Could you be one of our partner firms?

 Our Adaptations Partnership Programme offers a range of benefits
for advisers to help you grow your business.

Get in touch with our team to find out more.

<![if !mso]>BECOME A PARTNER FIRM<![endif]> Forward 

1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH

Blackfinch Investments Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No. 2705948. Registered Office: 1350-1360 Montpellier Court, Gloucester Business Park, Gloucester, GL3 4AH

This email, including any attachments, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this email (or the person responsible for delivering this document to the intended recipient), you are hereby notified that any dissemination, distribution, printing or copying of this email, including any attachment, is strictly prohibited. If you have received this email in error, please respond to the individual sending the message, and permanently delete the original and any copy of any email and printout thereof.

Please note that any views or opinions expressed in this email are solely those of the author and do not necessarily represent those of Blackfinch. While Blackfinch scans all outgoing emails for viruses, the recipient should check this email and any attachments for the presence of them. Blackfinch accepts no liability for any damage/loss caused by any virus transmitted by this email.