A tale of two visits

John Redwood, Chairman of the Investment Committee at Pan Asset takes a look at the Indian and Chinese stock markets. On the 20th October the President of China Xi Jinping will arrive in London for a state visit. The guest of the Queen, there will be a grand banquet at Buckingham Palace, and business meetings … Continue reading “A tale of two visits”

Sterling weakness and plenty of money

The UK has been battling down its government deficit for the last seven years.  In the March Budget book they forecast an annual deficit of £55bn for the present year, down from £72 bn this year. They also forecast a falling path for UK state borrowing as a proportion of our GDP, with net debt … Continue reading “Sterling weakness and plenty of money”

More details of the Lifetime ISA revealed

Earlier this year, the government announced a new Lifetime ISA will be launched in April 2017 to help young people buy their first home and save for retirement. What is a Lifetime ISA? The Lifetime ISA is to be a new option for those aged between 18 and 40 saving for retirement or a house … Continue reading “More details of the Lifetime ISA revealed”

Where do you find a good yield?

Part of the big idea of Central Banks creating money and buying bonds is to drive other investors to buy riskier assets. They want to stimulate more activity. They hope that by taking interest rates down to very low levels some people will spend more instead of saving, and others will be more adventurous with … Continue reading “Where do you find a good yield?”

A bull in the China shop?

The Chinese stock market has been making some upward progress this year after the dramatic boom and bust cycle it went through in 2015. The authorities had a plan to involve more Chinese people in the stock market, and to gradually open Chinese shares to more foreign capital and influence. Unfortunately for them, individual investors … Continue reading “A bull in the China shop?”

Recession looks very unlikely in the UK

It is unlikely that there will be a recession in the UK this year or in 2017. In March, the Treasury forecast 2% growth for this year and 2.2% growth for next. Just before the referendum campaign began, the Treasury set out its fear that a Leave vote could put the UK into recession, owing … Continue reading “Recession looks very unlikely in the UK”

The economic future of the Euro area

The falls in Euro-area share prices over the last year have been led by big falls in commercial bank shares. In part, this reflects slow progress in dealing with the bad debts and poor conduct of the pre-crash period, leaving many of them with low levels of cash and capital to absorb past losses. It … Continue reading “The economic future of the Euro area”