Labour have won the 2024 UK General Election with a significant majority – gaining over 400 seats and an estimated 35% of the vote. From taxes and pensions to how the stock market has reacted, here’s what a new Labour government could mean for you and your money.
In a surprise move, UK interest rates have been left unchanged – but at 5.25%, they are still at their highest for 15 years. Price rises appear to be slowing faster than expected, but there are increasing signs that higher rates are starting to hurt the UK economy, according to the Bank of England.
The financial markets remain focused on inflation and the labour market. But rising oil prices are also a factor in an increasingly complex equation. As the end of the UK’s current interest rate hike cycle comes into view, growth looks set to slow dramatically in China as its economic outlook worsens. Meanwhile, a new superpower is being born…
This week our CIO looks at the aftermath of the Jackson Hole Symposium, such as the Fed's commitment to defeating inflation and maintaining pressure through interest rate hikes. He discusses the BRICS summit and the potential impact of its expansion. Investors should remain disciplined and patient, particularly as we head into September, which is a historically volatile month for the markets.
As China’s economy falters, inflation continues to trend down in the US and there are grounds for optimism on this side of the Atlantic. The UK economy grew faster than expected in the second quarter, and the recent pullback is the perfect buying opportunity for those investors who have been playing it safe up until now.
The UK may have the highest debt interest costs in the developed world. The Bank of Japan made a surprise decision on its bond market and yield curve control, and Germany heavily invests in the semiconductor industry. Overall, the markets are enjoying some stability at last.
The US has successfully tamed inflation, unlike the Bank of England which faces the need for further interest rate hikes. The global economy undergoes a shift from a binary state to a more balanced one.
