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D-PIMS Weekly Market Update - Week of 30th September to 6th October 2019

Today’s Monday Update:

Over the last week, for a change Brexit and trade dominated the headlines!:

• The week did not start too well when U.S. manufacturing activity tumbled to more than a decade low, sparking worries that the fallout from the U.S./ China Trade War is spreading to the U.S. economy (which was always inevitable with any extended Trade War).

• On Wednesday, the last day of the Conservative Party Conference saw Prime Minister Boris Johnson unveil his ‘final Brexit offer’ to the European Union. He said if Brussels does not engage with it, Britain will stop talking and leave on Oct. 31 regardless. Later in the day the ‘last ditch’ proposals were submitted to the EU and for once did not get an immediate re-buff, their response was that they would consider the submission.

President Trump raised the prospect of a $7.5 Billion Tariff hit to EU companies after The World Trade Organisation (WTO) ruled against the EU over illegal subsidies given to Airbus. However, the WTO are yet to rule over the same subsidies given to Boeing by the US!, but that isn’t expected until next year.

• On Thursday the details of the new Brexit proposals seemed relatively well received in the UK Parliament compared to past such revelations, but it was far from certain that there would be any movement from the EU, given the negative comments from ‘EU Officials’ and the Irish Foreign Minister.

• After the previous days negative comments on the new Brexit proposals, Friday saw the Irish Foreign Minister (Simon Coveney) referring to the Brexit negotiations by saying ”This is not mission impossible”. He said “there is a deal to be done here,” he further said ”I believe it’s possible to do that with goodwill and energy on all sides, and I think we’ll get that next week.” So, maybe there is still hope of a near term conclusion to the fraught saga! Time will tell.

• Overall World Stockmarkets did not have a good week and were generally well down, inevitably the D-PIMS Portfolios also had a down week, although to a lesser extent.

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.