10
Aug
Relative attractiveness of British assets
Negative GDP in Q2. Resilient leading indicators. The BoE fears inflation at +12% Monetary policy measured. Decreasing risks for the pound. Opportunities in bonds. Attractive relative valuations for equities.
Key Points
- UK GDP advanced by +0.8% in Q1
- The 2nd quarter could be down by -0.2
- Surprising resilience of leading indicators in Q2
- Unemployment rate nears all-time low
- Loss of household confidence threatens consumption
- BoE fears inflation will rise to +12% in 2022
- New opportunities in the bond markets
- The BoE is gradually adjusting its monetary policy
- Risks to the British pound diminish
- Direct real estate shows signs of weakness
- Risk premiums still attractive for UK equities
