July Performance

pmx

July Overview
Generally positive economic news as well as a weakening dollar provided the backdrop for investors in July. For UK investors, this meant strong positive returns from almost all asset classes. Politics and Central Bank messaging continued to influence markets, but in a slightly more subdued manner than had been the case throughout the rest of the year. Learn more

STIR Crazy

mario-draghi-has-cracked-the-negative-rate-puzzle-for-banksJust over a month ago, the UK was still reeling from the shock result of the general election and it would be another fortnight before Theresa May and the DUP finally hammered out a deal.

Barely had the ink dried on the DUP agreement when the European Central Bank Forum kicked off in Sintra, Portugal, and Mario Draghi, President of the ECB, unwittingly set the cat amongst the pigeons when he said that “deflationary forces have been replaced by reflationary ones”. This caused alarm when investors interpreted his positive tone as a precursor to the central bank slowing its economic stimulus package more quickly than markets were discounting. ECB officials were quick to voice concern that the comments had been misjudged but this didn’t stop sharp price action in rate and FX markets.

Alex Harvey (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, shares his view. Click here to view.

Market Update

News this past week:

  • Oil prices climb around 5% last week
  • Volatility makes a comeback moving to 10.9 on the VIX index
  • Global equities trading near record highs
  • Technology stocks under pressure with continued sell offs
  • Central banks adopt a hawkish tone around fiscal tightening

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Real Reason Behind Qatar Crisis Is Natural Gas, as Saudis Issue 24 Hour Ultimatum

Gulf CrisisIn the latest escalation of the Gulf crisis in which a coalition of Saudi-led states cut off diplomatic and economic ties with Qatar, Saudi Arabia has now given Qatar a 24 hour ultimatum to fulfil 10 conditions, that have been conveyed to Kuwait, which is currently involved in the role of a mediator between Saudi and Qatar.

Whilst the official narrative for the diplomatic fallout is because – to everyone’s ‘stunned amazement’ – Qatar was funding terrorists, including a report by the FT that Qatar has directly provided $1 billion in funding to Iran and al-Qaeda spinoffs, could the real reason behind the diplomatic fallout be far simpler, and once again has to do with a long-running and controversial topic, namely Qatar’s regional natural gas dominance. Learn more

The End of the Car Industry?

Roadster_2.5_windmills_trimmedOne of the most interesting parts of our jobs is having the opportunity to have great debates with some of the best fund managers in the world.

The car industry has gone relatively undisrupted for the past 100 years but is now under threat from the emergence of the electrical car. James Jones (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, shares a recent discussion we had with one of our more aggressive growth managers – Is the way we drive about to radically change, and are we seeing the last days of the car industry?

Click here to view.