From Southbank Private Briefing (Great Britain)-
The Bank of England surprised everyone (well nearly everyone) by not raising rates on Thursday. The pound rallied (defying the Brexit bears). Meanwhile, the FTSE 100 – benefitting from the flood of money into blue-chips and multinationals that source revenue from overseas – is up 6.36% year-to-date and over 20% from the February lows. It becomes the first European exchange to enter bull market territory.
UK markets have been buoyed by political stability. But around the world, political instability looks set to be a feature for at least the next year. First, you have the US presidential election in November. But keep an eye on the nominating conventions. The Republicans meet (presumably to nominate Donald Trump) in Cleveland next week. The Democrats will nominate Hillary Clinton in Philadelphia the following week.
In Europe, French elections are scheduled for April and May of 2017. Later, in October, Germans go to the polls to deliver their verdict on Angela Merkel and her ruling party. The barbaric attack in Nice overnight could further destabilise French politics. It’s a troubling time.
This week’s The Southbank Private Briefing touches on some of these issues, with a special focus on gold, bonds, and interest rates. And let’s not forget that despite the resurgence of geopolitics as a factor in your investment strategy, there are some positive stories. Eoin Treacy chimes in with some insights about lithium and Tesla.