With the UK’s main investment index breaking 7900 just a couple of weeks ago, volatility has returned, created by a number of factors, tariffs being one of them, dragging the indexes lower.
Investment Markets – bumps in the road increase………

FTSE 100               7566.54    (-1.51%) @ 13.30 25/6/18
FTAS                    4173.19    (-1.35%) @ 13.30
Dow J                   24240.96  (-1.38%) @ 16.49

Tariff battle – some call it a ‘Trade War’

The European Union has imposed tariffs on €2.8bn worth of US goods, including Whisky and Motorcycles (Harley-Davidson).  The levy, which came into effect last Friday, is a direct, retaliatory response to America’s steel and aluminium tariff imposition in imports.

The European Commission President, Jean Claude Junker, reiterated his criticism of the US’s position, saying its tariffs go against ‘all logic and history’.

UK Interest Rates held at 0.5%

The Bank of England maintained rates at 0.5%, although the BoE Chief Economist, Andy Haldane, surprised markets by joining the ranks of those within the Monetary Policy Committee pushing for an immediate rise.

The committee delivered a 6 to 3 vote, raising expectation that a hike could happen at the August meeting of the BoE.  Sterling rallied against the US Dollar on the news.

Euro Area

Eurozone governments have granted Greece more time to repay its €96.9bn debt.  A plan has been agreed which pushes back repayment deadlines and extends the period during which Athens will pay little or no interest on money owed.

Since 2010, Greece has had 3 bailout programmes.

Residential Property Sales slow

Countrywide stock drops over 25% after profit warning.

Britain’s biggest estate agent stated that the property market was ‘subdued’.

The housing market has weakened where the traditional Estate Agency Sector has also suffered at the hands of ‘online competitors’ – which don’t suffer the costs of running high street offices – and are not so debt constrained.

Single first-time buyers received 17 years to save for London deposit

In an article on Sky News produced earlier today – Hampton’s research used Office of National Statistics (ONS) earnings figures for people aged in their 20’s, assuming that a household could save 22% of their income towards a deposit, after regular bills were accounted for; concluding that it would take 17 years to save a deposit for income related property in London.

The data and ‘subdued’ property market would indicate that property price increases were unsustainable, fuelled by low interest rates.  The property sector is likely to suffer further, if interest rates are increased, so are savers ‘likely’ to get any ‘relief’ from interest rate pain anytime soon?

If rates increase, repossessions increase and may create a major effect to the property market.

  • SolutionsThere are a number of ‘Contract based’ Structured Products and Structured Deposit Plans which define outcomes, with investment market movements normally liked to the FTSE 100.  A number of quality products will be listed on our site, with new tranches from tomorrow (26/6/18).Tempo have a number of quality solutions – all requiring advice, where Dura Capital, Hilbert enable consumption on a non-advised basis which means that consumers can buy the product as long as they have the required investment experience and understand and have the capacity to lose the capital, based upon their personal financial position.We will be sending a Newsletter to our clients in relation to Structured Products over the next day or so which will provide useful information and education in relation to Structures as a specific investment sector.Visit our website – www.bestpricefs.co.ukAs always, if you have any questions feel free to get in touch on 01639 860111 or email – richard.harry@bestpricefs.co.uk

    Please note that the information provided in this communication is not to be regarded as ‘advice’.  Advice always requires a process of suitability to be followed, which involves a personal financial overview, an investment risk appraisal, leading to a recommendation in relation to a suitable outcome in relation to the product purchased.

    If no advice has been sought the consumer has no protection in respect of how a product is ‘suitable to meet the needs of the consumer’ via the Financial Ombudsman Service (FOS).

    As a financial distributor and adviser, we would always recommend advice is sought, especially in relation to complex financial matters but we also recognise that consumers want to buy products without taking advice which is why we built our website.

    Product Expansion

    We are currently negotiating terms with a variety of product manufacturers and platforms in order to offer discounts on most insurance and investment solutions – following our ‘best price’ vision.  We will be offering most forms of insurance cover from;

  • Best price structured products
  • Best price home emergency cover
  • Best price motor legal protection
  • Best price landlords home emergency cover
  • Best price motor excess protection

We will shortly expand our ‘bestpricefs’ pricing to Car Insurance, Home and Contents Insurance, Pet Insurance, Travel Insurance, Van Insurance, GAP Insurance.  Rather than providing a full list of insurance solutions via this communication, click on https://www.quotezone.co.uk/insurance-sitemap.htm so you can see the extensive list of coverage.

Bestpricefs – the future of financial services solutions.

We know you will like what we present.  We’ll update you on the terms soon.


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