Head of Corporate & Financial at Stature PR with over fourteen years of experience working in the financial services industry having previously acted as the Head of Communications / Public Relations for both publicly listed and privately owned investment firms. With knowledge of and huge interest in the financial markets I advise clients how best to engage with investors and the financial media by devising and implementing strategic corporate and financial communications strategies.
So no matter how much businesses and consumers do not want to see the commencement of monetary tightening, we have to accept a normalisation is around the corner. At least with this much advanced warning, those that will be most affected need to prepare themselves now and will not be able to say they didn't see it coming.
The rabbit out of the hat was the introduction of a national living wage, which will largely be paid for by the reduction in corporation tax, but the announcement of which led the FTSE 100 to pull back from its highs. All in all the budget can be seen as a very business orientated one which the markets have broadly welcomed.
This meeting has the potential to be an own goal for OPEC, but at least for consumers, businesses and motorists alike the prospect of low inflation and prices at the pump remaining stable is here to stay.
With the manifestos out of the way and as we head towards the final stretch of the election campaigns culminating with the General Election, political deadlock remains in place. Neither of the two main parties have gained the upper hand with polls suggesting a very tight race to the finish line.
This makes the coming weeks potentially rather dangerous for investors and traders as geopolitical uncertainty increases. Already we have been seeing an uptick in volatility, not just in sterling, but across FX markets as a whole and if the result from the General Election continues to look like there is going to be no clear winner then things could become even more volatile.
Now that the Greek General Election is out of the way we can focus on the UK one, which as we've been constantly reminded is less than 100 days away. As the focus on politics increases we can not only draw some comparisons to the Greek situation, but learn some lessons from them as well.
The Scotland referendum vote is going to be closer than we think come 18th September. The Yes Campaign has the wind in their sails but is it going to remain blowy enough to see them actually split from the UK and if they do, what will an independent Scotland mean for the UK and the new country?
There may be more of us working, but in real terms we're all working for less. Wages are not growing anywhere near as much as inflation and in fact the most recent data showed they rose at their slowest rate of growth since June 2010.
Whilst the government must be careful not to meddle too much in the way banks are run, the sword of Damocles is arguably warranted to change the way they behave, so that they never repeat the errors made in the early noughties that led to the bubble bursting so spectacularly.
So will the optimism that's been building up towards the end of 2012 be quashed in 2013 just as in previous years? We'll have to wait and see but since growth forecasts for 2013 have been slashed left, right and centre recovery looks like it'll be feeble at best.
11/01/2013 12:22 GMT
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