subject: Public Sector Net Borrowing Rises to £10.3bn, Retail sales could be benefitted says IHS Global [print this page] Public Sector Net Borrowing Rises to 10.3bn, Retail sales could be benefitted says IHS Global
At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates.
Cash and income timing from a UK Pension or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension, QROPS and investment income taken.
Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, QROPS and now QNUPS (Qualifying non UK Pension schemes).
Public sector net borrowing in the UK for October rose to 10.3bn which was a record high for the month. Economists had expected public borrowing to fall andanalysts had forecasted a figure of 9.4bn. Despite the government increasing itsincome through taxes and reducing spending on jobless benefits as unemploymentfell.
Also out yesterday morning retail sales were up 0.5% from the previous month's Year on year figure. They had shown a 0.1% decline the office for national statistics reported. Therise in October came after an expected fall in September which reported salesdropped a revised 0.5% Month on month and a revised figure of 0% Year on year.
IHS Global said, "It is likely that retail sales will benefit to a limited extent in the final weeks of this year from consumers looking to make purchases ofmore expensive items ahead of the January Value Added Tax increase. Retailers will also be fervently hoping that consumers decide to splash out and have a goodChristmas despite their worries and uncertainties over the economic outlook."
Further out though, the concern remains that consumers will rein in their spending inthe face of serious headwinds. This would clearly limit overall economic growth.
This UK data did little to affect Sterling with GBP/EUR trading at 1.1702 andGBP/USD at 1.5962.
A report released yesterday in the US at 13:30 GMT by the department of labourshowed that the number of individuals claiming for initial jobless benefits rose lessthan expected at 439K analysts had expected claims to rise to 442K in the weekending November 13th.
Following the release of the data, the U.S. dollar was down against the euro, withEUR/USD jumping 0.84% to hit 1.3645.
Also in the US the Federal Reserve Bank of Philadelphia said that its manufacturingindex jumped to 22.0 in November, having previously risen to 1.0 in October.
Analysts had forecast the index to rise to 4.5 in November.
The dollar strengthened against Sterling gaining 0.52% trading at 1.5990 from1.6030, the pair's highest since Tuesday.
Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for Pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS and QNUPS and investments in a clear format allowing all customers to make an informed choice.
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