Overview

UK Overview

UK News
The decline in global activity has slowed, the re-balancing of the indebted consumer sector is well advanced and markets are functioning much better than was the case at the end of 2008 and the beginning of 2009. The first 2 months of the year has seen positive returns from equity markets, while credit and index-linked have significantly outperformed government bonds in the last three months. This is what we expected given that credit became very oversold in the wake of the Lehman collapse and inflation expectations in the bond market fell to levels that were unrealistic over the medium term. The Uk markets have been affected through May as the financial problems for Greece continue. The General Election had little impact, and the coalition government seemed to be to the liking of many of the decision makers in the city.

World Overview

World Overview
The credit crunch and sub prime lending crisis continues to affect the US economy and investment markets.

Falling house prices continue to put pressure on the American consumer, and concerns continue to grow about just how much this situation will affect us in the UK over the next year.

The BRIC nations (Brazil, Russia, India and China) continue to emerge as ever stronger economies.

For some time the PIGS nations in Europe (Portugal, Italy, Greece and Spain), have been the areas to avoid, and the well publicised problems for the Greek econonmy have only added more weight to this strategy.