Walker Crips' Market Commentary

Last week, Bank of England Governor Andrew Bailey downplayed the possibility of rate cuts this year, noting the central bank is comfortable leaving interest rates on hold. While inflation is expected to return to its 2% target later than preferred, markets have already tightened the bond yield curve. Soaring energy costs remain a concern, with upcoming price cap increases threatening to push millions of households into fuel poverty. Consequently, officials are maintaining a cautious stance, especially as Bank of England Monetary Policy Committee member policymaker Catherine Mann signalled a readiness to hike rates if price pressures persist. Meanwhile, domestic food price inflation hit a multi-month low as retail competition and promotional activity helped keep shop prices in check...Stocks featured:BAE Systems, St James's Place and EntainTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.

Last week was marked by the Prime Minister Sir Keir Starmer’s resignation on Monday, despite the exit being expected, anxieties still developed and the British economy continued to stall under cost pressures. The initial hit to corporate confidence was laid bare by a sharp contraction in the flash June Purchasing Managers' Index, as it slumped to a 14-month low. Manufacturing orders hit a six-year low, signalling an immediate freeze in business investment during the leadership transition, whilst Monday morning’s weak Confederation of British Industry Growth Indicator further validated this downwards trajectory. Even though some research data offered a silver lining with public inflation expectations cooling down to 3.8% from 4.7%, the Bank of England remains reluctant to cut interest rates as policymakers are keeping a cautious stance, particularly due to a recent data collection error at the Office for National Statistics which clouded their visibility on the true state of the jobs market.Stocks featured:Segro, 3i Group and GlencoreTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.

Last week, Bank of England Governor Andrew Bailey defended the recent gilt sales programme, arguing that it remains broadly neutral for everyday taxpayers. While the Iran war threatens widespread price increases, the Monetary Policy Committee chose to hold interest rates. Soaring energy costs have fuelled worries about rapid deindustrialisation risks, which currently offshore roughly 25% of domestic manufacturing. Consequently, officials are likely to maintain a cautious holding stance as economic momentum steadies, preferring to monitor inflation, which is nearing 2.8%, rather than reacting solely to temporary energy spikes. Meanwhile, domestic retail sales broke a negative spell, securing growth for the first time since April, from warm weather retail demand...Stocks featured:Barratt Redrow, Standard Chartered and EntainTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.

Last week, Bank of England Governor Andrew Bailey warned that Artificial Intelligence (“AI”) may need to be rationed due to energy capacity constraints limiting deployment. While the Iran conflict threatens widespread price increases, the Monetary Policy Committee expects no further interest rate increases. Workplace disruption has fuelled worries about rapid technological shifts, which currently engage roughly 84% of the domestic boardrooms. Consequently, officials are likely to maintain a cautious holding stance as median pay steadies, preferring to monitor inflation, which is nearing 4%, rather than reacting solely to temporary energy spikes. Meanwhile, domestic retail sales broke a negative spell, securing growth for the first time since spring, from warm-weather retail demand...Stocks featured:Airtel Africa, Tritax Big Box Real Estate Investment Trust and HalmaTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.

Last week, Bank of England (“BoE”) Governor Andrew Bailey warned that the central bank must restore public confidence in its official 2% inflation target. This assertion follows new internal research detailing the high costs of bond liquidations. While the Iran conflict threatens widespread price increases, the Monetary Policy Committee (“MPC”) expects subsequent interest rate increases to follow. Workplace disruption has fuelled worries about rapid technological shifts, which currently overwhelm roughly 61% of the domestic workforce. Consequently, officials are likely to maintain a cautious wait-and-see stance as wage growth steadies, preferring to monitor long-term stability rather than reacting solely to temporary corporate inflation spikes...Stocks featured:Bunzl, InterContinental Hotels Group and PrudentialTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.

Last week, Britain’s economic landscape continued to struggle due to the energy shock driven by the conflict in Iran, leading to Ofgem (“the Office of Gas and Electricity Markets”) announcing a 13% rise in energy bills. This and other inflationary measures mean the headline inflation will likely remain above the BoE’s (“Bank of England”) target for a fifth consecutive year. BoE Governor Andrew Bailey indicated that while rate cuts are off the table, recent bond market tightening has bought the central bank time to monitor the conflict's volatility. Investors have subsequently scaled back their interest rate expectations, pricing in just a small increase by year-end. There is also stagnation in the labour market. Resignation rates have dropped to 0.55%, with workers clinging to existing roles due to fewer vacancies; higher employer taxes; and automation threats...Stocks featured:International Consolidated Airlines Group, JD Sports Fashion and Melrose IndustriesTo find out more about the investment management services offered by Walker Crips, please visit our website:https://www.walkercrips.co.uk/This podcast is intended to be Walker Crips Investment Management’s own commentary on markets. It is not investment research and should not be construed as an offer or solicitation to buy, sell or trade in any of the investments, sectors or asset classes mentioned. The value of any investment and the income arising from it is not guaranteed and can fall as well as rise, so that you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. Movements in exchange rates can have an adverse effect on the value, price or income of any non-sterling denominated investment. Nothing in this podcast constitutes advice to undertake a transaction, and if you require professional advice you should contact your financial adviser or your usual contact at Walker Crips. Walker Crips Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FRN: 226344) and is a member of the London Stock Exchange.