The noise
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In latest figures released by the UK Office for National Statistics, GDP shrank by 0.2% in the third quarter as ChancellJeremy Hunt warned of a “tough road ahead”. The fall was largely driven by manufacturing which saw declines across most industries. The chancellor is expected to announce his Autumn Statement detailing billions in government spending cuts
on the 17 th November.
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On Monday, the United States Commerce Department announced that it will no longer treat Russia as a market economy country stating that “this decision gives the United States the ability to apply th e full force of the U.S. anti dumping law to address the market distortions caused by increasing interference from the Russian government in their economy”..
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Facebook owner Meta became the latest big tech company to lay off workers this week as it announce it would axe more than 11,000 staff i n a wider shake up of the business which aims to cut costs but remain invested in the metaverse. Mark Zuckerberg made the announcement himself, and took full responsibility for the decision.
The numbers
The nuance
Inflation as measured by the US consumer price index fell by more than expected on Thursday sparking a surge in equity prices, higher bond prices (lower yields), and a weaker USD. While there may still be tougher times ahead this is a reminder to investors that markets are forwards looking, and usually turn upwards before the economic data improves in anticipation of better times. Should inflation continue to moderate on the current trajectory it would be below 4% in the US within 12 months restoring real returns to bonds yielding higher than 4%.
While one day of market euphoria should not be extrapolated too far, it is a welcome reminder that cheaper valuations in both asset classes have improved the longer term return outlook and that the recovery may be closer that many investors think.
Quote of the week
The I’m a Celebrity Jungle is a ”metaphor for the world I work in”.
Matt Hancock, MP for West Suffolk, former Health Secretary and contestant on I’m A Celebrity
As the new series of I’m A celebrity…Get Me Out of Here! returned to screens, it was announced late on Tuesday that former cabinet minister, Matt Hancock was set to enter the show. The MP, 44 faced significant backlash as he made his debut on the ITV show this week. However, the former Health Secretary who was suspended by the tory party for signing up for the reality programme, insisted that he often has positive encounters with the public. He stated that the public are “generally fantastic” with him and often ask him for selfies. He also announced that he “absolutely loves” working in his West Suffolk constituency, despite now
abandoning them to appear in the jungle based reality show.
Whatever people's opinions of him as a person or a failed Health Secretary are, Hancock's arrival on I'm A Celebrity was a ratings smash for ITV. A peak of 9.1million watched his entrance to camp, which was up 2.1m on the same show last year. Following his entrance, alongside fellow latecomer, comedian Seann Walsh, 36, Mr Hancock was taken to task by several of his fellow campmates as the questioned his reasoning for appearing on the show, including ITV News' Charlene White, 42. But, the politician recently admitted he doesn't throw
himself into anything unless he thinks there's a "good reason for it".
Source: The Mirror, The Guardian, BBC News.
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