Providing you with all the latest news for your reading pleasure.

Our monthly economic review is intended to provide background to recent developments in
investment markets as well as to give an indication of how some key issues could impact in the future.
It is not intended that individual investment decisions should be taken based on this information; we are
always ready to discuss your individual requirements. We hope you will find this review to be of interestSFFS Economic Review_Dec 19

UK set to avoid recession • At the end of October, talk of renewed trouble  in US-China trade negotiations cast doubt on the
possibility of a long-term trade deal. The news knocked sentiment recently lifted by growing optimism the Phase One deal would be concluded in November. • In the UK, at the end of the month, markets braced for a wide array of Brexit possibilities after parliament approved a December election. October 31 marked the first full day of campaigning for Boris Johnson and his rivals. The more domestically focused midcap index closed marginally up at month end, while the large cap index lost 2.16% in October. • In the US, investors continued to digest the  Federal Reserve’s latest interest rate cut and commentary, as well as a host of major corporate
quarterly results as earnings season rolled on. The NASDAQ Composite was buoyed by results from Apple and Facebook, the Dow Jones finished marginally up (0.48%). • On the foreign exchanges, sterling closed the month at $1.29 against the US dollar. The euro
closed at €1.16 against sterling and at $1.11 against the US dollar. • Gold is currently trading at around $1,512.46 a troy ounce, a gain of 2.74% on the month, as trade woes brought the precious metal back in favour. OPEC (Organization of the Petroleum Exporting
Countries) oil output bounced in October from an eight-year low as a rapid recovery in Saudi Arabian production offset losses in Ecuador and voluntary curbs under a supply pact. Brent crude is currently trading at around $60.21 a barrel, a loss of 0.94%
on the month. (Data compiled by the Outsourced Marketing Department)  SFFS Economic Review_Oct 19

Tending your portfolio will make it bloom!

All successful gardeners will understand the need to regularly tend their plants, shrubs and lawns in order to ensure a garden can flourish. And, for investors, taking a similar approach with their financial affairs can also bear fruit by ensuring their investment portfolios don’t become neglected and, as a result, underperform. Weeding, sowing…. As with a garden, your investment portfolio
requires regular careful attention in order to ensure it continues to grow. Typical tasks include weeding out any perennially underperforming funds and switching to potentially more profitable ones and, for those with new money to invest, sowing the seeds of your portfolio with carefully selected additional new investments. …pruning and trimming Another important task is pruning. This
will ensure your investment portfolio stays balanced and continues to fully reflect both your current and long-term financial goals as well as any changes in your appetite for risk. It may also require taking profits at certain points in time to ensure you are using any potential tax allowances. However carefully your initial range of investments were selected, your portfolio will also inevitably get out of shape over time. This creates an ongoing need to regularly review the allocation of different asset classes, such as cash, equities, bonds and property. And such a review may result in the trimming back of certain assets in order to restore balance to your portfolio.
Help is at hand. Many people now seek professional help to create and maintain their garden and it’s obviously wise for investors to do the same thing. Indeed, with ongoing political and economic uncertainties causing increased market volatility, there has
arguably never been a more important time to seek professional financial advice. Keep in touch, so that we can help you keep your investment portfolio in full bloom.  For more information continue reading here; SFFS Simply Wealth_Autumn 19

Our monthly economic review is intended to provide background to recent developments in investment markets as well as to give an indication of how some key issues could impact in the future. It is not intended that individual investment decisions should be taken based on this information; we are always ready to discuss your individual requirements. We hope you will find this review to be of interest.

The latest batch of employment data released by the Office for National Statistics (ONS) shows that the UK labour market remains in robust health, with the total number of people in work rising to another record high.  Statistics from the Labour Force Survey
showed that a net 115,000 jobs were created during the second quarter of 2019, taking the overall level of employment to a new high of 32.81 million. As a result, the employment rate (the proportion of  16–64-year-olds in work) rose to 76.1%, the joint-highest figure since comparable records began in 1971. This increase was largely driven by further growth in the proportion of working women.
The data also revealed another increase in the level of pay, with average weekly earnings excluding bonuses rising by an annual rate of 3.9% across the April to June period, an 11-year high.  When adjusted for inflation, regular pay increased by 1.9% compared to the same
period a year earlier, meaning that real wages are now growing at their fastest rate in nearly four years.
Commenting on the employment figures, ONS Deputy Head of Labour Market Statistics, Matt Hughes said: “Employment continues to increase, with three-quarters of this year’s growth being due to more women working. However, the number of vacancies has been falling for six months, with fewer now than there were this time last year.” While this strong set of employment statistics does therefore confirm that the UK labour market continues to defy any signs of a Brexit-related slowdown, there are concerns that the figures could
prove to be a high-watermark. Demand in the labour market typically lags significantly behind changes in output and economists are still warning that a Brexit effect is likely to become apparent in future sets of employment data.  SFFS Economic Review_Aug 19

Pay growth strongest in a decade •  The latest batch of labour market statistics shows that UK workers’ basic pay is now growing at the fastest rate in nearly 11 years.
According to data from the Labour Force Survey, average weekly earnings, excluding bonuses, rose by an annual rate of 3.6% in the three months to May 2019. This was at the top end of forecasts submitted in a Reuters poll of economists and the largest recorded
increase in pay growth since mid-2008.
The data also showed that wages continue to outstrip inflation. Indeed, in real terms, regular pay increased by 1.7% in the March to May period compared with a year earlier; this represents the highest real rate of growth since autumn 2015.
This recent acceleration in wage growth has largely stemmed from two factors that have impacted the data since April. The first relates to pay rises for some NHS staff which has contributed to an overall increase in public sector pay growth to 3.6%, its highest level since June 2010. In addition, the introduction of the new National Living Wage rate and National Minimum Wage  rates have boosted wages for lower-paid workers in sectors such as wholesaling, retailing, hotels and restaurants.
Commenting on the figures, Matt Hughes, Deputy Head of Labour Market Statistics at the Office for National Statistics (ONS), said: “The labour market continues to be strong. Regular pay is growing at its fastest for nearly 11 years in cash terms and its quickest for over three years after taking account of inflation.”
This latest pick-up in pay growth will undoubtedly have been noted by policymakers. The Bank of England (BoE) has previously said it expects wage  growth to ease back to 3% by the end of this year and these latest figures clearly show wages rising at a rate significantly
above that forecast level.   To continue reading please click this link  SFFS Economic Review_July 19