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 110 | 20th September, 2022

UK COMMENTARY

  • The number of registered UK company insolvencies in August was 1,933, 43% higher than in August 2021, according to figures from the Insolvency Service. The increase was driven by a rise in creditors’ voluntary liquidations, where the company opts to cease trading, rather than compulsory liquidations.
  • The Office of National Statistics (ONS) reported inflation eased slightly in August, after falling petrol prices pushed the annual rate down from 10.1% in July to 9.9%, but inflation remained close to the highest rate in 40 years.
  • Noting some of the drivers of inflation, the annual rate for motor fuels eased from 43.7% to 32.1% between July and August. However, food and non-alcoholic drinks prices rose at an annual rate of 13.1% in August, up from 12.7% in July, marking the highest rate since August 2008. The largest upward effect came from milk, cheese and eggs.
  • The ONS also reported that average house prices increased 15.5% in the year to July. This took the average UK house price to a record £292,000, £40,000 higher than the same month last year. This was the highest annual rate of house price growth since May 2003, and compared with a 7.8% increase in June.

NORTH AMERICA COMMENTARY

  • The US Bureau of Statistics reported that the Consumer Price Index (CPI) was 8.3% higher in August compared with the same month last year. This was down from an annual rate of 8.5% recorded in July and 9.1% in June, the highest rate in four decades.
  • Falling petrol prices were the major contributor to the drop. US petrol prices have fallen for 13 weeks in a row. According to AAA, a gallon of petrol currently costs an average of $3.71, down from a high of over $5 in June. Used and new car prices – once a major driver of inflation – fell, as did airfares.
  • The average price of food in the US jumped 11.4% in the 12 months to the end of August, according to the US Labor Department’s Bureau of Labor Statistics. This was the largest annual increase since May 1979. Food to eat at home cost 13.5% more than in August 2021.
    ​​​​​​​

EUROPE COMMENTARY

  • According to Eurostat, the statistics office for the European Union, the Eurozone’s annual inflation rate was as expected at 9.1% in August, up from 8.9% in July. The lowest annual rates were registered in France (6.6%), Malta (7.0%) and Finland (7.9%). The highest annual rates were recorded in Estonia (25.2%), Latvia (21.4%) and Lithuania (21.1%).
  • In the Eurozone, Eurostat reported industrial production was much weaker than expected in July, falling 2.3% month-on-month, following a 1.1% increase in June. This was due to a 4.2% decline in the output of capital goods used to make finished products (buildings, machinery, equipment and tools), reflecting weaker business investment.
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RUSSIA  COMMENTARY

  • Russia’s central bank cut its key interest rate by 50 basis points to 7.5%. Inflation was forecast to ease, giving policymakers wriggle room to provide cheaper lending to lessen Russia’s economic slump. However, the central bank signalled this may be the last rate cut some time.

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