Blog

25th September 2017

Monday Espresso

 

 

  • After the latest Federal Reserve policy meeting, the committee signalled to markets one more rate hike this year and potentially three more next year, on the back of strengthening economic performance. Added to this, the Fed also announced it will slowly shrink its huge $4.5 trillion balance sheet starting in October.
  • Standard & Poor’s cut China’s credit rating one notch from AA- to A+. The ratings agency commented “…a prolonged period of strong credit growth has increased China’s economic and financial risks.”
  • Theresa May outlined her new Brexit strategy, looking to implement a transitional deal with the EU, which will last for up to two years, after the UK leave the EU. The Prime Minister’s goal is to maintain trade ties to the U.K.’s biggest market and give businesses time to adjust to the new regime.
  • Uber, a US ride-hailing company, has had their application for a new licence in London rejected by Transport for London, on the basis that the company is not a “fit and proper” private car hire operator. There are currently 3.5 million Londoners who use the app, and more than 40,000 licensed drivers.

  • On Tuesday 26 September we will see the release of figures for US New family home sales, with the market expecting an additional 571,000 home sales during the month of August.
  • On Friday 29 September we will see the release of UK Chained GDP YoY, with market expectations at 1.7%.

  

A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.

A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.

A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.

*as at latest realignment 12/09/17

Notice:

The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.

Risk Barometer

0

as at latest realignment

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    Copia Capital Management

    Fleet House, 8-12 New Bridge Street, EC4V 6AL

    Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

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