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 108 | 5th September, 2022

UK COMMENTARY

  • The Office for National Statistics (ONS) reported that the value of sales by UK small businesses fell 10% in July, the largest monthly fall since April 2020 when it fell 24%. This confirmed consumers have reduced their spending as a result of higher inflation, particularly in relation to food and fuel prices.
  • The S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 47.3 in August, from 52.1 in July (but better than last week’s flash estimate of 46.0). A figure below 50 represents a contraction.
  • Nationwide reported that UK house prices rose 0.8% in August, notably higher than analyst expectations.
  • Shop prices inflation rose 5.1% year-on-year in August, according to data from the British Retail Consortium (BRC). This was an increase from July’s 4.4%, and the highest rise since 2008. Food prices increased 9.3%, with the cost of milk, margarine and crisps most heavily affected, after farmers were hit by soaring prices due to the war in Ukraine.
  • Consumers borrowed an extra £700m on their credit cards, according to the Bank of England. This was an increase of 13.0% in the 12 months to July, and the fastest increase in credit card borrowing since October 2005.

NORTH AMERICA COMMENTARY

  • In the US, the Bureau of Labor Statistics reported that 315,000 new jobs were added in August, following the addition of 528,000 new jobs in July. This beat analyst forecasts and restored employment to pre-pandemic levels.
  • The Bureau also reported that the US unemployment rate ticked up to 3.7% in August, an increase that surprised economists who had expected it to remain at July's 3.5%.

EUROPE COMMENTARY

  • The Spanish government announced it will cut value-added tax (VAT) on gas to 5% from 21% from October to reduce the impact of rising gas prices on household utility bills.
  • Eurozone annual inflation jumped from 8.9% in July to 9.1% in August, according to a flash estimate from Eurostat, the statistical office of the European Union (EU).
  • Consumer prices in Germany, calculated on an EU-harmonised basis, jumped 8.8% year-on-year in August, up from 8.5% in July, according to estimates from statistics body Destatis.

ASIA COMMENTARY

  • China’s Manufacturing PMI picked up to 49.4 in August. Despite this being an improvement, this was the second monthly contraction and an indication of sustained downward pressure on the manufacturing sector.

GLOBAL COMMENTARY

  • The United Nations Food Agency’s World Price Index fell further away from its record highs earlier this year, as commodity food prices eased. Examples of declining prices included international wheat prices falling by 5.1%, vegetable oil prices falling 3.3%, and dairy prices dropping 2%.

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.