Aug 10
16
Monday Morning Bulletin
Ladies and Gentlemen Please find attached this week’s bulletin which contains the following points:
Economic data showed a two speed recovery in the eurozone with the German economy racing ahead of its rivals at the fastest rate for two decades – demand for its cars boosted exports.
US Federal Reserve Chairman, Ben Bernanke, was forced to announce a change in policy following recent poor US economic data: the Fed will give a monetary boost by re-investing its maturing mortgage-backed securities into government bonds, thus keeping interest rates low.
In the UK the BoE reduced its growth forecast for the next two years but still sees the economy growing around 2.7% pa – much in line with longer-term trends.
Stock markets suffered a two way pull but finally succumbed as investors decided to head for less-riskier investment such as the dollar, government bonds and yen.
Standard Life’s investment chief Keith Skeoch believes now is the time to buy UK equities seeing the FTSE100 index hitting 6,000 by year end.
Despite their excellent run there is still value and merit for investors in owning corporate bonds within their portfolios according to fund manager Paul Read of Invesco Perpetual.
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