KEEP UP TO DATE WITH ALL THE IMPORTANT COVID-19 INFORMATIONCOVID-19 RESOURCE PORTAL

FANews
FANews
RELATED CATEGORIES
Category Investments

London last week

10 February 2004 Quentin Smith

The publication of survey data pointing to accelerating growth across all sectors of the domestic economy helped London shares to end the week ahead, says Quentin Smith of OMAM UK.

This, despite dollar weakness, a less optimistic international picture and some disappointing corporate results.

The market took Thursday's widely anticipated interest rate rise in its stride.

The Bank of England raised its benchmark interest rate by a quarter point, citing a broader-based global and domestic economic recovery.

It commented that domestic output growth was above trend in the second half of 2003 and that recent surveys point to a further pick-up in the first quarter, while household spending and borrowing have been resilient and the housing market remains strong.

The Bank believes that this is likely to lead to a gradual pick-up in inflationary pressure during the next two years.

Fund manager Amvescap (+2.0% to 4111/4p) reported a fourth quarter profit of £3.8m after costs from the US investigation of improper mutual fund trading, against a £41m loss a year earlier.

The company set aside £16.1m for legal expenses as it negotiates a settlement with regulators. Amvescap, which derives 80% of its profit from the US, is one of more than 20 companies under investigation for allowing trading that diluted returns for long-term investors.

Regulators have alleged that the company's Invesco Funds group in Denver engaged in a scheme whereby privileged clients were allowed to trade in and out of the company's funds to make quick gains.

The Bank of England inflation report is published this week, which should give some clue as to the possible timing of the next rate rise, while in the US, Fed chairman Greenspan's congressional testimony is likely to paint a rosier picture of the economy, with growth broadening out.

Quick Polls

QUESTION

The next year or two will continue to be a turbulent one with regards to regulatory change. Do you think…

ANSWER

What we need is less regulation not more
The industry has overwhelmed itself with its own excessive regulation
The industry is bracing itself to deal with the regulatory changes, and brokers and insurers need to stay well informed of the effects of these changes
fanews magazine
FAnews June 2021 Get the latest issue of FAnews

This month's headlines

Broker and insurer collaboration should not be a one-way street
Running on outdated systems… There's risks
Policy wordings with respect to COVID-19
Death or divorce... how best to split assets
Ethical investing… principles and moral codes
Portfolio positioning will serve investors well
Subscribe now