Blog

27th August 2019

Tuesday Espresso

 

On Friday August 23, China announced it will impose new tariffs up to 10% on $75 Billion on goods imported from the US as the trade war between US and China escalated. Surprisingly, equity markets had a very subdued reaction to the announcement.

Prime Minister Boris Johnson met with German Chancellor Angela Merkel and French President Emmanuel Macron for Brexit talk. The EU continues to take a stand that the withdrawal deal negotiated earlier is not open for re-negotiation.

The US Fed officials met at Jackson Hole where the US Fed Chairman Jerome Powell mentioned the US economy is in a ‘favourable’ place and that the Fed will ‘act as appropriate’, signalling a potential rate cut as the escalating trade war with China poses a potential risk of a US slowdown.

On Thursday August 22, Apple announced it will be launching new Camera-Focused Pro iPhones very soon. It also plans to upgrade its iPad and MacBook Pro to restart flagging sales growth.

  US GDP growth will be announced on Thursday August 29, with an expectation of 2% YoY.

Also on Thursday August 29, Japan Consumer confidence will be announced with an expectation of 37.8.

+0.49*

-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 31/07/19

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

    Subscribe

    Subscribe to our blog and get our best content in your inbox.



    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.

    © 2021 Copia Capital

    Advisers, staff of professional firms and other eligible counterparties

    I work for an advisory / professional firm or other eligible counterparty.

    I will take responsibility for any jurisdictional restrictions that apply to the services described by this website in accordance with applicable law and regulation.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.

    Customers and prospective customers

    I confirm that I am resident in the UK or other EU Country and I am not a US citizen.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.


    The content of this website may only be viewed by persons that meet either of the above conditions.  If neither option is applicable please click here which will close this webpage.