D-PIMS Weekly Market Update - Week of 15th to 21st July 2019
Today’s Monday Update:-
There was not a great deal of economic news last week but a few events:
• All week Trump was causing trouble over four Congresswomen he told to ‘go home’ after they criticised the way he is running the country. This caused a large backlash from all sides, as the four women are US citizens and three were actually born in the country. This did not stop him continuing his attack all week and tweeting over the weekend that they should ‘apologise to America’. No doubt this row will continue!
• On Thursday the UK Parliament approved a requirement for Parliament to sit for several days in September & October to consider Northern Irish affairs even if Parliament was suspended.
• They also endorsed a requirement for ministers to make fortnightly reports on progress towards re-establishing Northern Ireland’s collapsed ‘devolved executive’ and to give lawmakers an opportunity to debate and approve those reports.
• These moves were designed to combat the threat of Boris Johnson suspending Parliament, if he becomes the next Prime Minister and tries to force through a ‘No Deal’ Brexit.
• With around 30 Tory MPs voting with the opposition on these Motions, it would appear that Boris Johnson was facing mounting threats to his authority even before he is confirmed as leader of the Conservative Party this Tuesday at 11.00 am (23.7.19).
• This threat appeared to increase when it was reported over the weekend that around six Tory MPs may ‘defect’ to the Liberal Democrats, if Boris Johnson is the new leader. This would be more than enough to remove the Government’s slim majority and bring a vote of no confidence.
• Friday started well with two Federal Reserve Governors calling for interest rates to be cut in the US, which the Markets saw as good news.
• However, Friday did not end well, as Iran followed through on its threats to seize a British ship, in retaliation for their Oil Tanker being impounded in Gibraltar. The Markets did not like this ‘escalation’ much! Of course the oil price jumped on the news.
• Over the week some Markets were up and some down. Most of the D-PIMS Portfolios were generally slightly up, apart from the higher risk portfolios.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.
Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.