Blog

5th November 2018

Monday Espresso

 

 

 

 

On Monday October 29, China released a report proposing a 50% tax cut imposed on car purchases, which will halve the current tax rate of 10% to 5%, aiming to offset the damage of trade-war on the vehicle industry.

  On Tuesday October 30, Eurozone GDP growth for the third quarter of 2018 was released, showing a 0.2% increase from July to September, the lowest rate in four years, down from 0.4% growth in previous quarter.

Also on Tuesday October 30, Facebook released its earnings report for the third fiscal quarter, showing an 11% jump YoY in company’s earnings per share and the number of active users increased 9% compared to a year ago. Tech stocks surged shortly following the report.

BOE decided to keep the current benchmark interest rate unchanged at 0.75% in the meeting on Thursday November 1, while the Governor, Mark Carney, indicated that rate hikes will be possible if there is a Brexit deal.

 

  The UK trade balance for September will be announced on Friday November 9, with an expected deficit at £1.47bn.

  On the same day, Friday November 9, UK GDP growth will be released, at an expected rate of 1.4% YoY.

 

-1.0     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.

0.0       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.

+1.0   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 31/10/18

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

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    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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