In the latest issue of the Blackfinch Spring VCT PLC's weekly update, several key global events and economic indicators were highlighted. In the UK, the Labour Party secured a widely anticipated victory in the General Election, with Sir Keir Starmer appointed as Prime Minister, marking the end of 14 years of Tory rule. Additionally, the energy regulator Ofgem announced a temporary price cap that is expected to reduce annual utility bills for a typical UK household. However, costs are projected to rise again in October. The UK housing market saw a 1.5% increase in house prices in June compared to a year ago, according to Nationwides House Price Index. Furthermore, while the UK's manufacturing and services sectors experienced some slowdown, they remained in expansionary territory.
In North America, a US Supreme Court ruling appeared to bolster the prospects of a second Trump presidency by granting him immunity over his involvement in the January 6th, 2021 riots. Federal Reserve Chair Jerome Powell's speech indicated progress in reducing inflation, leading the market to anticipate potential interest rate cuts. The US employment data showed a slightly higher-than-anticipated unemployment rate in June, at 4.1%, while average hourly earnings rose by 3.9%.
Turning to Europe, the first round of parliamentary elections in France saw the far-right National Rally securing a significant portion of votes. However, in the second round, the National Rally unexpectedly fell to third place, resulting in a hung parliament. In Germany, inflation fell faster than expected in June, and Eurozone inflation slowed in line with expectations. Additionally, factory output in Germany experienced a steep decline in May, contrary to market forecasts.
The update also highlighted the opportunity for an exceptional advisory experience for clients through the company's 10 Minute Market Forecast, a monthly webinar providing insights and sound bites on global events in an easily digestible format. This initiative aims to keep advisors informed and equipped for informed conversations with clients.
Overall, the update provided a comprehensive overview of key global events and economic indicators, offering valuable insights for advisors and clients alike.