News this past week:
- Oil prices continue to decline
- Brexit negotiations begin
- Bank of England split over policy rate moves
- MSCI adds China A shares to All Country World Index
- Brexit bills dominate UK Queen’s speech
One 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?
“Not since Watergate have our legal systems been so threatened, and our faith in the independence and integrity of those systems so shaken,” These were the words of Senator Richard Blumenthal of the US Judiciary on the incendiary news that President Trump has fired the Director of the FBI, James Comey. The timing of the termination, occurring whilst the presidential campaign is under investigation for possible ties to Russian collusion has raised eyebrows…
Yet those searching for some immediate negative market reaction to events reminiscent of the Nixon debacle would be hard pushed to find much of any real significance: A small slide on equity futures and a brief flight to currency safe havens (a fleeting rally on USD/JPY to a 114.32 high which swiftly retraced to a 113.63 low) were about all- Indeed the S&P500 index even ticked upwards, closing at a record high of 2399.63 on the day. What is more, the US equity markets have remained largely flat since February, whilst volatility on treasuries also remains low. What effect this latest twist will have on Trump’s longer term economic plan of tax reforms, protectionism, healthcare and infrastructure investment remains to be seen. Some indicators that it is stalling were already in place after a tumultuous first one hundred days, and it is hard to see these latest developments helping matters.
James Jones (CFA) of Momentum Global Investment Management, one of our UK regulated, discretionary fund managers, shares his view. Click here to view.
As UK Prime Minister Theresa May calls for an early general election to expedite the Brexit process, Glyn Owen, Investment Director of Momentum Global Investment Management, one of our UK regulated, discretionary investment managers shares his view of the markets and reviews first quarter of 2017.