News in Review
Market update
- Global markets hit record highs after the US Federal Reserve cut interest rates for the third time this year.
- Oracle shares dropped over 10% as revenue missed expectations, sparking concerns about the pace of returns on Artificial Intelligence (AI) investments.
- Pre-budget ‘jitters’ in the UK meant the month of Black Friday didn’t deliver as strongly as retailers had hoped or the economy needed.
- UK GDP fell 0.1% in October, marking four months without growth, while China posted a record trade surplus despite ongoing US tensions.
Inflation and interest rates drop
This week, the UK inflation rate, as measured by the Consumer Prices Index, fell to 3.2% from 3.6%. While the Bank of England cut interest rates from 4% to 3.75%.
FSCS limit rises to £120,000
The Financial Services Compensation Scheme (FSCS) limit rose from £85,000 to £120,000 for banks, building societies and credit unions on 1 December. The limit is the maximum a financial services customer can be compensated, per institution, if the firm fails. The aim of the deposit limit increase is to reassure people that their money is protected up to £120,000. Please note that the limit of £85,000 still applies to investments.
Key Budget takeaways
I know it may seem like old news but it could be important if some of the changes affect you. So if you haven’t already, watch our video with Les Cameron, Head of Technical at M&G, talking about the key changes announced in the Budget and what you should be thinking about.
As the tax year comes to a close, make sure you're maximising any tax efficiencies. Please get in touch – I'm here to help. I’d also like to take this opportunity to send you and your loved ones my best wishes for the festive season and the New Year.