The noise

  • Joe Biden announced on Wednesday that 15 million barrels will be released from US strategic oil reserves this December, in a blunt new shock to global oil markets. This announcement completes the release of 180 million barrels authorised by the US president back in March that was initially meant to take place over six months. The reserve now has about 400 million barrels of oil, the lowest level since 1984.

  • Liz Truss became the shortest serving UK Prime Minister this week, edging out George Canning who lasted 119 days in 1827 after a premature death. Her resignation comes after a key minister quit and Tory MPs rebelled in a chaotic parliamentary vote, triggering the second Tory leadership election in four months.

  • A fresh round of inflation data was released this week placing more pressure on the Federal Reserve as interest rate hikes don’t appear to be working. Thursday’s release saw inflation inching up to 8.2%, whilst month on month it increased 0.1% in August and 0.4% in September.

     

The numbers

The-nuance-21-Oct-2022.PNG


The nuance

Rising interest rates may have dented bond markets, but they have been quite profitable for banks who have been lending at higher interest rates. Investors’ returns from fixed income have improved as mentioned in previous weekly’s but this has also been realised as a boom for banks as the loans they make continue to be profitable.

We acknowledge that inflation remains stubbornly high across a multitude of geographies, and despite central banks’ attempts to quash inflation, there is no sign yet that they are winning the battle. As the following weeks progress, we expect data releases to shine a light on how current economic policy is affecting the wider economy.
 

Quote of the week

“Liz Truss leaves whilst the lettuce romaines.”
Kate Nicholson, Senior Trends Reporter, Huffington Post
 

Liz Truss issued her resignation on Thursday afternoon after only 44 days as leader of the country to become the shortest serving Prime Minister in history.

A live stream, created by the Daily Star, consisted of a table with a picture of Truss next to an actual lettuce, with the Star asking if Truss will still be PM within the 10-day shelf life of the lettuce. And the viral video feed, featuring the lettuce, lit up Parliament on Thursday night.

The stunt, which began on Oct 14, was inspired by a column in The Economist which referred to the Prime Minister as an "iceberg lady" and said she had "the shelf-life of a lettuce".

A day before Truss resigned, the Leader of the Opposition in the House of Lords, Baroness Smith of Basildon, also referenced the lettuce. Baroness Smith said: "We've also seen damage to the Prime Minister, who has lost the confidence of the public, of Parliament and of course of her own party. A new leader is to be announced by the Tory party before October 31.

Source: The Daily Star, The Economist, The Telegraph

 

All investment views are presented for information only and are not a personal recommendation to buy or sell. Past performance is not a reliable indicator of future returns, investing involves risk and the value of investments, and the income from them, may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested. Any views expressed are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness by atomos. Any expressions of opinion are subject to change without notice.

Next
Previous

Please navigate to a service or product page and add the document to your brochure to continue.

Back
Name your brochure
Your details
Thank you!

Your brochure is on its way.

Brochure Confirmation - your brochure is on its way.

We hope you find this useful.

The value of investments and any income from them can fall and you may get back less than you invested.