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 114 | 17th October, 2022

UK COMMENTARY

  • The UK unemployment rate fell to 3.5% between June and August, according to the Office for National Statistics (ONS). This was the lowest rate since 1974, and was driven by a record number of people leaving the jobs market.
  • The ONS also reported the number of people classed as ‘inactive’ (neither in work nor looking for work) rose by 252,000 in the three months to August. This was the biggest such increase since records began in 1971.
  • Jeremy Hunt was appointed as Chancellor of the Exchequer, replacing Kwasi Kwarteng. The Prime Minister also confirmed Chris Philp, former Chief Secretary to the Treasury was being moved to a Cabinet Office role.
  • According to Moneyfacts, last Tuesday, the average two-year fixed mortgage rate available in the UK mortgage market had a rate of 6.43% - the highest rate since August 2008 (just before the collapse of Lehman Brothers). The average five-year fixed-rate has increased to 6.29%, the highest level since November 2008.
  • Data provider Kantar reported that grocery inflation surged to 13.9% in September, the highest level since the survey began in 2008. On an annual basis, shopping bills would rise by £643, to £5,265, if people kept buying the same items.
  • UK wages continued to lag inflation over the summer, according to the ONS, leaving workers with pay cuts in real terms. Regular pay (excluding bonuses) rose by 5.4% per year in June-August, the strongest growth in regular pay seen outside of the COVID-19 pandemic.

NORTH AMERICA COMMENTARY

  • The US Commerce Department reported that US retail sales ground to a halt in September, with zero growth in spending as high inflation and rising interest rates made consumers more cautious.
  • The US Department of Labor announced the headline rate of US inflation reached 8.2% in September, higher than analyst expectations. The core rate of inflation, which strips out food and energy prices, picked up to 6.6%, a 40-year high.
  • Figures from the US Labor Department showed wholesale prices rose 0.4% in September, twice as much as expected. The annual growth rate dipped from 8.7% in August to 8.5% in September.

EUROPE COMMENTARY

  • The European Union's statistics office Eurostat reported that the Eurozone trade gap ballooned from €34bn in July to €51bn in August. This marked the tenth straight month of deficits for the region which has recorded large surpluses in the past. The swing into the red has been largely caused by the soaring cost of energy imports. 
  • Eurostat said industrial production for euro-area countries rose 1.5% in August from July, much better than the 0.6% gain forecast by economists. This was in sharp contrast with UK manufacturing, which fell 1.6% in August, contributing to an overall economic decline of 0.3%.
  • Among the biggest Eurozone economies, France’s industrial production rose 2.5%, while Italy’s increased by 2.3%. Output in Germany – normally the Eurozone’s economic powerhouse – declined 0.5%.

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