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The Tory party conference was held during the week and it became apparent that they are likely to pursue leaving the European Union with some vigour. As a result, the pound fell significantly. Not surprisingly the UK FTSE 100 index rose in reaction to that. Many of its members make much of their profits in Dollars and Euro’s and until the high costs of imports works through dividends and profits are likely to rise, so the Stock market does too, Usually this effect lasts about 3 to 6 months, so we will be watching for markets to be weaker around the end of the year.
The government have decided to stop the process to sell to the public the last 9% of Lloyds Bank that they still own, mostly because of the volatility highlighted in the indices above. It’s a difficult sale because the prices is close to the strike price of the bailout in 2008, Instead, it will be sold in small tranches to institutional investors. – (Source: BBC)
Foolish moment of the Week:
Two to choose from this week. Donald Trumps misogynistic recording suggesting he can ‘have’ any woman he wants. The republicans are disowning him but it’s probably too late for him to withdraw. Secondly, UKIP potential leaders ending up in hospital after an “altercation” with a colleague. It does seem that political life is stranger than fiction.
Preparing for the Future You Don’t Yet Know
Stephen Harvard Davis and I are running a workshop on January 19th 2017 – More details are here…
If you would like to know more call me on 07880 794127