Archive for July 2018

Saudi Arabia: the next emerging market

Suadi Arabia has been named as the next emerging market by a global stock index.

The June 2018 review of constituents for the main Emerging Markets Index has produced a few surprises. The MSCI Emerging Market Index is one of the most important global stock market indices. JP Morgan, the US investment bank, estimates that nearly $1,500 billion is either benchmarked against the index or directly tracks it, so there can…

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Top earners increase their share of tax payments

HMRC’s latest statistics provide an insight into the income tax paying population. The figures reveal changes in the distribution of tax revenue over the last decade, with a growing share now coming from higher earners. The pie chart shows the proportion of 2018/19 tax expected to be paid by taxpayers in various bands of income. For…

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Understanding what goes in to the FTSE100

The latest quarterly review of the FTSE 100 revealed common misunderstandings about how the index is drawn up. Every quarter FTSE Russell, which operates all the FTSE indices, decides which companies are promoted or demoted from the 100 index. There had been speculation that the June review would see Marks & Spencer (M&S) replaced by…

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National Savings & Investments focusing on smaller investors

National Savings & Investments (NS&I) has introduced limits on its offerings for wealthier savers.  In mid-June NS&I announced a revision to the terms of its popular Guaranteed Growth and Guaranteed Income Bonds. The interest rates were left unchanged, but the maximum investment per person, per issue was cut by 99%, from £1 million to £10,000.…

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Interest rates for the Eurozone and US diverge

Important interest rate announcements were made in June, both in the UK and the US.  The US Federal Reserve announced its seventh 0.25% increase in interest rates since December 2015, taking the level to 1.75%-2.00%. The rise had already been incorporated in market prices by the time it arrived, so of more interest were the…

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