LAST WEEK – KEY TAKEAWAYS

‘LAST CALL’ FOR BREXIT AS MAY SET TO OUTLINE THIRD CUSTOMS MODEL

• European Council president Donald Tusk has issued a “last call” to the UK to “lay the cards on the table” if a Brexit deal is to be achieved before October’s deadline.

• Downing Street is believed to have produced a third plan for handling customs after the UK leaves the EU.

• Two previous options, a customs partnership, under which the UK would collect EU import tariffs, and the ‘maximum facilitation’ idea, involving a waiver for entry a...

LAST WEEK - KEY TAKEAWAYS

BANK OF ENGLAND HOLDS RATES FOR NOW AS CHIEF ECONOMIST DISSENTS

• The UK base rate was held at 0.5%, but nine-member Monetary Policy Committee (MPC) split 6-3.

• The Bank’s chief economist Andrew Haldane joins two others in voting for a rise to 0.75%.

• MPC says the poor economic growth figures of the first three months of a year was likely to prove "temporary" and that the speed of growth would pick up.

• The Omnis view: this is the first time that Andrew Haldane has dissented from the majority view ...

LAST WEEK – KEY TAKEAWAYS

UK INFLATION REMAINS STEADY WHILE UNEMPLOYMENT FALLS

• The UK consumer prices index (CPI) remained at 2.4% in May, according to the Office for National Statistics (ONS).

• Economists had predicted a rise, but falling cost of computer games and confectionary helped offset rising petrol prices.

• Unemployment fell by 38,000 between February and April, remaining at 4.2%, while average earnings rose by 2.8%.

• The Omnis view: it is encouraging that unemployment remains at its lowest levels since 1975, tho...

LAST WEEK – KEY TAKEAWAYS

FTSE 100 UP AND POUND DOWN AS UK MANUFACTURING OUTPUT SHRINKS

• UK industrial production fell by 0.8% in May, dragged down by a 1.4% slide in manufacturing.

• Total UK trade deficit widened by £1.9bn to £9.7bn in the three months to April 2018, due mainly to falling exports.

• Weak economic data hit the value of the pound on Monday morning (11 June), though the FTSE 100 rallied as most revenues are generated by these blue-chip companies outside of the UK.

• The Omnis view: uncertainty around Brexit is...

LAST WEEK – KEY TAKEAWAYS

US JOBS FIGURES IMPRESS, WHILE ECONOMIC GROWTH REVISED SLIGHTLY LOWER 

• US jobs growth faster than expected, with a further 223,000 new positions added in May.

• Unemployment rate fell to an 18-year low of 3.8% during the month, from 3.9% in April.

• The second estimate of gross domestic product (GDP) for the first quarter of the year was 2.2%, slightly lower than the original estimate of 2.3%

• The Omnis view: US economic data like this is encouraging and follows on from a positive US earnings seaso...

LAST WEEK – KEY TAKEAWAYS

UK INFLATION SLOWDOWN REDUCES LIKELIHOOD OF A SUMMER INTEREST RATE RISE

• UK consumer price inflation (CPI) unexpectedly fell to 2.4% in April, according to the Office for National Statistics (ONS).

• The figure fell from the 2.5% registered in March, due in part to lower airfares.

• The Bank of England delayed a rate hike earlier in May, and is considered unlikely to move again in the near term.

• The Omnis view: while the headline inflation figure remains above the Bank of England’s stated 2% target...

LAST WEEK – KEY TAKEAWAYS

KEY QUESTIONS FOR ITALIAN ECONOMY AS NEW COALITION GOVERNMENT IMMINENT

• Five Star Movement and anti-immigration League close to clinching a deal to lead the country after 10 weeks of political stalemate.

• Uncertainty around the future of the Italian economy leads to volatility in the country’s equities and bonds.

• Leak of coalition’s draft plan shows proposals to ask the European Central Bank to write off €250bn of debt as well as to set up procedures allowing EU member states to exit the euro.

• T...

LAST WEEK – KEY TAKEAWAYS

MARKETS SHRUG OFF SYRIA ATTACK, WHILE INVESTORS AWAIT RUSSIAN RESPONSE 

• Allied strikes on Syria have had a limited impact on major stock markets.

• Syrian ally Russia has yet to respond, while there are reports that Washington is poised to increase pressure on Moscow with fresh economic sanctions.

• Oil surged in value last week, but prices have since fallen back. Russian stocks and the rouble have been on the slide.

• The Omnis view: there has been little impact on our funds. The Omnis Emerging Marke...

• First week of April a strong one for equities, despite ongoing ‘trade war’ fears between the US and China.
• Donald Trump tweets “President Xi and I will always be friends, no matter what happens with our dispute on trade. China will take down its trade barriers because it is the right thing to do”.
• After the US detailed the $50bn of tariffs on Chinese goods, Beijing responded with its own targeted list. President Xi is set to comment on situation in speech o...