In the first week of February, the Bank of England held rates at 3.75% in a split 5-4 vote, with Governor, Andrew Bailey, stating a March cut was a “50-50 call”. Data shows actual business activity is healthy: the Services sector (54.0) and Manufacturing (51.8) are both well above the 50.0 neutral mark, indicating solid growth. The job market is also stabilising as hiring downturns ease. However, future confidence is low as surveys show CEOs prioritising "resilience over investment" due to political uncertainty, with 80% of firms pausing capital plans to weather the storm. The political instability is partly a consequence of the Peter Mandelson appointment controversy, which has put Prime Minister Keir Starmer's position in peril. Starmer ousted Chief of Staff Morgan McSweeney over the weekend to suppress opposition, yet Cabinet ministers are reportedly urging him to stand aside as Angela Rayner and Wes Streeting are preparing leadership challenges. This volatility is forcing a repricing of UK assets, pushing 10-year gilt yields to 4.54% and weighing on sterling. To stimulate growth, Chancellor Rachel Reeves is shifting policy toward stronger EU economic relations...

Stocks featured:

GSK, Imperial Brands and RELX

To 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.

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Last week, the Bank of England's (“BoE”) weekly short-term repo allotment hit a record high of over £100 billion, marking the shift to a repo-led system, while the BoE considers tokenised assets as eligible collateral. The UK labour market softening continued, with Adzuna reporting that December job vacancies fell 15% year-on-year to a 2020 low, as rising payroll costs slowed hiring. This supports the majority view of a March rate cut, despite BoE Governor Andrew Bailey stressing the need to boost market resilience. Globally, Prime Minister Keir Starmer and President Xi agreed on a "strategic partnership," resetting UK-China relations with progress on whiskey tariffs and visa waivers, alongside cooperation on equipment used for restricting small boat crossings. Chatham House noted Beijing views the UK as a stable partner amidst US policy "disruption," with low current investment, 0.7% of UK foreign direct investment, offering significant growth potential...

Stocks featured:

3i Group, Fresnillo and Lloyds Banking Group

To 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.

Hosted on Acast. See acast.com/privacy for more information.

Last week, UK economic data revealed a mix of rising price pressures and surprising resilience in activity. Inflation surprised on the upside in December with the headline Consumer Price Index (“CPI”) rising to 3.4%, driven by higher airfares and tobacco duty, a development likely to instil policy caution at the Bank of England (“BoE”) next month. However, economic activity accelerated, as the January Purchasing Managers Index (“PMI”) recorded its strongest upturn since April 2024, hitting a 21-month high of 53.9, which S&P Global noted is indicative of a 0.4% quarterly growth rate. Retail sales also beat expectations with a 0.4% expansion in December, though a quarterly decline in goods purchased suggests underlying household consumption remains weak. In financial markets, gilts headed for their worst weekly performance since November amid political risk, while Vanguard announced plans to offload approximately £1.9 billion of UK shares to reduce "home bias" in its funds...

Stocks featured:

Admiral Group, Endeavour Mining and Rentokil Initial

To 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.

Hosted on Acast. See acast.com/privacy for more information.