Hasta la vista, baby #financefriday

Yes, Boris is on his way out and I think Rishi Sunshine with the permanent smile will be in. Boris, uttered that well-known phrase, Hasta la vista, baby, at the end of PMQs. I assume it was directed at the Speaker. Commentators have suggested that he was hinting at the fact that he intends a return. Arnie’s other phrase was, of course, I’ll be back. I think Boris might try to talk Rishi into making him some sort of special envoy to Ukraine. He’ll try to grab the limelight somehow. Even though I think he’s a bumbling idiot, I’ll miss him. At least he had a positive view of life.

Bank of England

The governor of the Bank of England talked down the economy again this week. He is a bit too pessimistic. We need to encourage investment in Britain. It was QE by the bank of England that caused inflation and the devaluing of the GBP. He needs to get a grip. Interest rates need to go up faster and the government needs to treat inflation as a spike, not an ingrained problem. Lloyd’s Banking Group gave its staff a one-off bonus, and Rolls Royce offered the same. The government is giving one-off payments to benefit claimants. These payments won’t feed an inflationary spiral. If prices drop next year, we might get through this inflationary spike without too much economic damage. We do need a leader who can take the problem seriously and that isn’t Boris; let’s hope Rishi Sunshine is up to the job and gets a competent team behind him. He might have to recruit his cabinet from the opposition benches, though!

Nervous investors

Investors are nervous now and our view of the future isn’t very positive. We were reminded of the threat of climate change this week. President Biden made a great speech and maybe caught covid on the same day. Covid hasn’t gone away but hopefully, the winter boosters will act as a fire break. The stock market this week was jumpy with oil majors still looking like the best bets. Banking seemed to be supported despite the Bank of England governor’s dire warnings. Unilever has ticked up slowly over the past month and gained 9%. I’m still very positive about Unilever. Gold has been falling but for some reason, it’s up this morning at £1442 an ounce. Oil is down at $95.11. The FTSE 100 is at 7287 which is up slightly. If I was buying anything today it would be Unilever and I am still waiting for Lloyds Banking group to make progress. I ignore the AIM market now but Alliance Pharma (APH) make consistent progress.

Other markets

I think I’ll stay out of other markets but MTU Aero Engines caught my eye in the European markets. Standard Chartered is listed on the London market but does business in Asia so will progress as the pandemic in Hong Kong is less of a problem. I don’t think small investors have much incentive to invest at the moment. Many small investors will be thinking about their winter energy bills and soaring inflation and want cash in the bank.

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