Ben Kumar, Investment Manager for Seven Investment Management, joined Nick Batsford on the Tip TV Finance Show to discuss UK GDP and Carney, as well as the FOMC, Crude Oil, the Bank of Japan and more.
Inflation situation a problem for Carney
Kumar noted that UK GDP for Q3 came in at 0.5%, and he continued that Carney is looking for growth across the whole year in the UK to be around 2%. He added that the Bank of England will not move before the Federal Reserve, but he concluded that higher inflation may cause Carney a problem in both in terms of growth and an interest rate hike.
Rate hike in the US data dependent
In terms of the FOMC meeting this week, Kumar commented that he doesn’t believe we will see any action. However, he still believed that December is the meeting for a rate hike with the possibility for a strong run-up of data releases before the meeting.
Real expectation ahead of the BoJ meeting this Friday
Kumar outlined that there is a real chance the BoJ may continue with the policy of QE, and unlike most of the global economy, Japan does have deflation where consumers aren’t spending money. He predicted that with the Bank of Japan owning 30% of all government bonds already, it can’t buy anymore, leading to Kumar making the conclusion that he struggles to see what the BoJ can do apart from buying stocks and shares.
Is China following Japan?
Kumar finished on China, where he highlighted that China is following small policies to stimulate the economy rather than the PBoC throwing everything at the economy. However, he added that this could lead them down the same path as Japan.
Watch the video to see further views on Aldi and Lidl, plus Crude Oil and a general Indices overlook.
We are not authorised by the Financial Conduct Authority of England and Wales. The information and/or data on this website is provided by us and any data providers which may be used by us for your general information and use only and is not intended for trading purposes or to address your particular financial or other requirements. In particular, the information and/or data on the website:
(1) does not constitute any form of advice (financial, investment, tax, medical, legal, spread -betting or otherwise); and (2) does not constitute any inducement, invitation or recommendation relating to any of the products listed or referred to; and (3) is not intended to be relied upon by you in making (or refraining to make) any specific investment, placing any bet or making any other decision; and (4) has not been issued or approved by Tip TV for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended from time to time).
Opinions expressed by speakers in the videos, writers of the blogs are only opinions and not expert advice. These opinions do not necessarily agree with those held by Tip TV, its directors, agents or employees who disclaim any intent to make betting, securities or securities markets recommendations. The value of investments and the income derived from them may fall as well as rise. APPROPRIATE EXPERT INDEPENDENT ADVICE SHOULD BE OBTAINED BEFORE MAKING ANY INVESTMENT, PLACING ANY BET OR MAKING ANY OTHER DECISIONS.
Recommended Content
Editors’ Picks
EUR/USD hold comfortably above 1.0750 as USD recovery loses steam
EUR/USD clings to small daily gains above 1.0750 in the early American session on Monday. In the absence of high-tier data releases, the US Dollar finds it difficult to gather recovery momentum and helps the pair hold its ground.
GBP/USD struggles to find direction, holds near 1.2550
GBP/USD stays under modest bearish pressure and trades near 1.2550 on Tuesday. The neutral risk mood, as reflected by the mixed action seen in US stocks, doesn't allow the pair to make a decisive move in either direction. The Bank of England will announce policy decisions on Thursday.
Gold rebounds to $2,320 as US yields edge lower
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is SEC filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.