|Market||Start of Week||End of Week||Change||%age|
Weakness in the US dollar following trumps election is restoring some confidence in UK and EU markets, and the Dow rose sharply as the Trump pending administration backtracked on many of the extremes promised before the election.
Phillip Hammond, the Chancellor, announced a number of things in his autumn statement. Increased Insurance Premium Tax probably doesn’t hit the headlines, but that change is significant, a 20% rise in insurance taxation (from 10% to 12%) will drive more young people to drive without insurance, and many poorer households to avoid the costs of insuring their properties. Increasingly insurance is becoming a luxury purchase and the policy seems to be to drive ever more of the poor into penury.
Changes in the fees allowed by property agents may pass additional cost to Landlords and tend to drive more into choosing to use property only as a capital investment. That may lead to more empty homes, higher rents, and a spiral that rewards the wrong result. We also seem to be in a race to the bottom to provide the lowest corporation tax environment in the world.
Foolish moment of the Week:
This week saw retailers packing on the sales with their ‘Black Friday’ events with ‘apparent’ discounts on many goods. It’s popular with shoppers but there is increasing evidence that there are better offers available normally. Source: BBC