Uttoxeter Online Magazine

This week’s Bulletin which contains the following points:

Positive economic data from the US gave a boost to markets last week, encouraging hopes that the world's largest economy was still on track to grow at around 2.5% this year.
In Europe, successful government bond sales by Spain and Italy also went down well with investors with both auctions oversubscribed, enabling yields to fall back and soothing investors’ concerns.
However on Friday, rumours of a possible downgrade by agency Standard & Poor's for France and Austria,  took some of the shine off share prices as markets reacted to the news. S&P confirmed the downgrades only after the close of markets. Notwithstanding the response today by the markets has been muted, implying that the 'news' has already been discounted.
Greece also took centre stage on Friday as talks with its international creditors, who have been taking a tougher line, broke down; although Athens said that it was confident a solution would ultimately be worked out.
The downgrades for France et al mean that the firepower of the eurozone's bail-out fund - the EFSF - might be diluted as it calls into question the ability of contributing members to underwrite the guarantees given by the fund.
Overall reaction from the European financial markets has been muted even though Asian markets fell around 1% after playing 'catch-up' from Friday, giving further grounds for believing that investors were expecting the downgrades and that Greece will do a deal with its creditors.
The case for the eurozone surviving is reflected on by THS Partners who believe the region will ultimately become one of the world's great growth opportunities.
As the Bank of England once more holds interest rates at 0.5% savers are given no respite and we look at why investors should continue to look at the case for equity income investing as part of the solution.
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( The complete text of this weeks Financial Bulletin can be downloaded as a 'pdf' file here. )

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Extract from this weeks Financial Marketing Bulletin, issued by RBA Wealth Management Ltd.

To see the full Financial Briefing Note and to sign up to receive them automatically each week

visit their web site : www.rbawealthmanagement.com or call  01889 568444 

This week’s Bulletin which contains the following points:

The New Year continued on the front foot as fresh signs that the US economy was gaining traction outweighed lingering concerns about Europe’s debt problems.

The level of unemployment in the US Is now at its lowest since February 2009 and will provide a lift for President Obama, who has faced a stubbornly high level of unemployment since taking office.

The immediate focus for investors in Europe seems to be on France and its continued quest to keep hold of its AAA rating. Markets will also be keeping a close eye on the Italian and Spanish bond auctions on Thursday, particularly after France’s efforts last week.

It is extremely difficult to make predictions for the short term, even over the course of 12 months, and to illustrate this, we take a look at predictions for 2012 as well as look back to analyst forecast for 2011.
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( The complete text of this weeks Financial Bulletin can be downloaded as a 'pdf' file here. )

______________________________________________________________________________

Extract from this weeks Financial Marketing Bulletin, issued by RBA Wealth Management Ltd.

To see the full Financial Briefing Note and to sign up to receive them automatically each week

visit their web site : www.rbawealthmanagement.com or call  01889 568444 

Tthis week’s Financial Bulletin contains the following points:

2011 is probably a year most investors wish to forget; one which witnessed high volatility amidst the eurozone sovereign debt crisis and left global markets suffering from crisis fatigue.

However not all asset classes suffered - high quality government bonds did very well and not all equity markets fell. The Dow Jones index of super blue-chip US companies actually ended the year higher. Anyone investing in a balanced portfolio with an income bias would have most likely been surprised on the upside

With the eurozone crisis unresolved there will, almost without doubt, be continued uncertainty this year and we mull over some of the most likely questions investors may be concerned about. Despite continued uncertainty, for those investors taking a pragmatic approach there are positive solutions in the form of diverse portfolios which can offer investors some degree of confidence in the year ahead.

To start the New Year, a number of our managers give their views on the outlook for equity markets.

( The complete text of this weeks Financial Bulletin can be downloaded as a 'pdf' file here. )

______________________________________________________________________________

Extract from this weeks Financial Marketing Bulletin, issued by RBA Wealth Management Ltd.

To see the full Financial Briefing Note and to sign up to receive them automatically each week

visit their web site : www.rbawealthmanagement.com or call  01889 568444 

Tthis week’s Financial Bulletin contains the following points:

Disappointment over the failure of the US Federal Reserve to announce a further programme of quantitative easing overshadowed better than expected US unemployment data, the number of Americans claiming benefit fell to the lowest level since 2008. There was good news on the inflation front for the UK where the consumer price index fell for the second consecutive month to 4.8%. Overall, global equity markets gave ground on the week as investors once more opted for safer havens such as the US dollar and Treasury bonds.

Worries over the eurozone resurfaced once more as markets looked for more details - not forthcoming - from EU leaders on their latest 'grand bargain' to sort out the sovereign debt crisis. Tensions were raised when rating agency Standard & Poor's warned that 15 of the region's 17 members might suffer a downrating in coming months, including France which caused a backlash as President Sarkozy questioned why the UK, with a worse fiscal deficit, was not in the firing line.

One aspect that has upset the markets is the failure of the ECB to use its firepower by buying up sovereign bonds - however the Bank has made available unlimited cheap money for banks to borrow giving rise to a new 'carry trade' whereby banks borrow at 1% and buy, for example, Italian bonds yielding over 6%. Whilst not a solution to the crisis it might buy more time for EU leaders to resolve the crisis long term.

China's property market is in the spotlight following signs that its speculative bubble might be bursting with prices falling last month. Beijing has been under pressure to lower prices because most Chinese have no chance of buying a home at current inflated prices. The concern is though that the property sector accounts for 13% of GDP and is therefore pivotal not just to China's growth but global growth too.

Lastly, looking ahead, we discuss ways investors can create more certain investment outcomes by ensuring they diversify their assets in a structured way to reduce risk and volatility.

Please note the next Bulletin will be 3 January 2012.

( The complete text of this weeks Financial Bulletin can be downloaded as a 'pdf' file here. )

______________________________________________________________________________

Extract from this weeks Financial Marketing Bulletin, issued by RBA Wealth Management Ltd.

To see the full Financial Briefing Note and to sign up to receive them automatically each week

visit their web site : www.rbawealthmanagement.com or call  01889 568444