US: Will the Federal Reserve slow down?

Big drivers in markets were the favourable corporate results in the retail and technology sector, as well as indications that the Federal Reserve, the US central bank, is open to slowing the pace at which it raises interest rates. Economic news in the US broadly pointed to signs of a weakening economy, which in turn would help the Federal Reserve slow down on its interest rate hikes.

Japan: Higher inflation and a slowing manufacturing sector

Investor sentiment was boosted by expectations that the Fe...

Money and financial goals are still sometimes viewed as taboo subjects, even within relationships. If you’ve been putting off conversations about finances, creating a plan together could have many benefits.

Actively talking about money can be positive for both you and your loved ones, and research suggests it’s something younger generations are more likely to do. According to Royal London, 76% of 18 to 24-year-olds spoke to their parents about money matters when they were growing up. In contrast, this falls to 43% for those over 65.

If mon...

Autumn statement 2022: what it means for you

After several months of economic and political uncertainty the new chancellor, Jeremy Hunt, has delivered his autumn statement.

With announcements relating to energy bills, Income Tax, the State Pension, tax allowances, and Stamp Duty, there are plenty of ways your finances could be affected in 2023 and beyond.

Here are the key points of the autumn statement and what they mean for you.

You may pay more Income Tax in 2023/4

The chancellor’s announcements mean many millions of workers are likel...

US: Recession on the horizon

Investors kept a close eye on earnings reports from some prominent retailers and what they indicated about a potential economic slowdown. Shares of retailer Target fell sharply after the company reported flagging discretionary spending in recent weeks, but better-than-expected results from Wal-Mart, and some other retailers offered a more positive picture. Economic data was mixed, with some encouraging inflation numbers. However, bond markets are suggesting a recession in the US is on the horizon.  

Japan: Infl...

US: Cooling inflation boosts markets

Headline consumer prices rose 0.4% in October, less than many had expected and bringing the year-over-year inflation to 7.7%. Whilst this inflation number is still well above the Federal Reserve’s target, it is the slowest increase since January. Core inflation, which excludes food and energy, also fell in September. As inflation slows down, this could lead to the central bank rising interest rates less aggressively than they have done this year. Other important news items in the US were the midterm elec...

In his 2021 Budget, the Chancellor announced a five-year freeze on the lifetime pension allowance. What does this mean for you and your retirement fund?

What is the lifetime pension allowance?

The lifetime pension allowance sets a limit on how much you can save in your pension before you start paying tax on anything over the limit. For a few years before the 2021 announcement, the limit had been tied to inflation, meaning that it rose in line with the cost of living.

With the global pandemic and surge in inflation over the past couple of ...

US: Interest rates to go higher than previously expected

The Federal Reserve raised interest rates by 0.75 percentage points. This had been widely expected and markets didn’t initially react. However, markets reacted to the commentary coming out of the Fed later on. Jerome Powell, the chair of the Fed suggested that the central bank would continue raising interest rates and that they would go higher than they had originally thought. This sent markets tumbling down. Markets continued falling towards the end of the week due to conflicting dat...

The Bank of England has raised interest rates and warned further hikes are likely in the coming months. This will mean bigger bills for some homeowners.

On 22 September 2022, the Bank of England raised interest rates from 1.75% to 2.25% - the seventh hike since December 2021 - in a bid to combat soaring inflation. The Bank’s Governor, Andrew Bailey, has warned people to expect further rises in the coming months.

It is now widely anticipated that rates will rise to over 5% by Spring next year. This has had a huge impact on the mortgage mark...

US: Disappointing corporate results but markets perform well

Overall markets rose sharply, but we saw a big divergence between different stocks. Investors reacted to a busy calendar of companies reporting their financial results for the period of July to September.  Energy stocks did better than the big technology stocks, where the likes of Microsoft, Amazon, Alphabet and Meta Platforms (Facebook) fell sharply following earnings misses and lowered outlooks. Hopes that the Federal Reserve might slow its pace of rate increases seemed to be a ...