{"id":7433,"date":"2024-04-17T10:12:56","date_gmt":"2024-04-17T09:12:56","guid":{"rendered":"https:\/\/test-hcfx.pantheonsite.io\/?p=7433"},"modified":"2024-04-17T10:12:56","modified_gmt":"2024-04-17T09:12:56","slug":"headaches-remain-for-threadneedle-street","status":"publish","type":"post","link":"https:\/\/hamiltoncourtfx.com\/it\/headaches-remain-for-threadneedle-street\/","title":{"rendered":"Headaches Remain for Threadneedle Street"},"content":{"rendered":"<div class=\"[ content-section content-section--two-col-text ]\">\n  <div class=\"grid-container\">\n    <div class=\"row justify-content-center js-animate-on-scroll\">\n      <div class=\"[ col col-12 col-sd-5 col-md-6 ]\">\n        <h5><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\"><strong>Word of the Week Wednesday<\/strong><\/span><\/h5>\n<p>&nbsp;<\/p>\n<p><strong>Executive Order:\u00a0<\/strong>In the US, an executive order is a directive signed by the President which has the same effect as federal law (being entered into the Federal Register) and bypasses the standard legislative process. While Congress can pass a law to override an executive order, the President can veto it. It\u2019s important to consider however that EOs can be adjudicated unlawful. A newly sworn in President will review existing EOs and only they can overturn them by issuing a new one. FDR, signed 3,721 executive orders during his 12 years in office.<\/p>\n      <\/div>\n      <div class=\"[ col col-12 col-sd-5 col-md-6 ]\">\n        <h5><\/h5>\n<p><\/br><br \/>\nSome examples across history include:<\/p>\n<ul>\n<li><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\">Proclamation 95: Lincoln\u2019s Emancipation Proclamation which altered the legal status of more than 3.5 million enslaved African Americans in Confederate states from enslaved to free.<\/span><\/li>\n<li><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\">Executive Order 13769: Trump temporarily banning citizens of seven Muslim-majority countries, from entering the US including permanent residents.<\/span><\/li>\n<li><span class=\"ui-provider a b c d e f g h i j k l m n o p q r s t u v w x y z ab ac ae af ag ah ai aj ak\" dir=\"ltr\">Executive Order 8807: FDR funding the Manhattan Project Executive Order 13228: Bush\u2019s Creation of the Department of Homeland Security in 2001 following the 9\/11 attacks.<\/span><\/li>\n<\/ul>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n<div class=\"[ content-section content-section--heading-text ]\">\n  <div class=\"grid-container\">\n    <div class=\"row justify-content-center\">\n      <div class=\"[ col col-12 col-lg-4 col-sd-3 ]\">\n        <h2 class=\"[ content-section__heading content-section__heading--sticky ] js-animate-on-scroll\">UK Inflation: Headaches Remain for Threadneedle Street<\/h2>\n      <\/div>\n      <div class=\"[ col col-12 col-lg-8 col-sd-7 ] js-animate-on-scroll\">\n        <p>UK inflation came in higher-than-expected this morning in the latest signal that the Bank of England may need to maintain monetary conditions higher for longer. Figures from the ONS showed the country\u2019s consumer price index falling from 3.4% in February to 3.2% in March, against a market consensus which was forecasting inflation to fall more extensively to 3.1%.<\/p>\n<p>Hence, while today\u2019s headline inflation print marked the lowest since September 2021, the fact that it remained hotter-than-expected and still well above the Bank of England\u2019s 2% target rate signals that Threadneedle Street continue to face headwinds.<\/p>\n<p>Just yesterday for example, Governor Andrew Bailey telegraphed that the UK was on track for rate cuts this year and while money markets are still forecasting this to be the case, following this morning\u2019s inflation print, they have downwardly revised their expectations on the extent to which the BoE will cut,<\/p>\n<p>Perhaps most alarming for policy makers was how the owner occupiers\u2019 housing costs (OOH) component of CPIH rose 30bps from 6% in February to 6.3% in March. Given that this includes owner occupiers\u2019 housing costs and Council Tax \u2013 which are excluded from the CPI\u2019s basket of goods \u2013 this is often considered a more comprehensive gauge of inflation.<\/p>\n<p>Moreover, core inflation continues to remain elevated with the month of March coming in at 4.2% against a consensus of 4.1%. While this was again a modest deceleration from February\u2019s 4.5% level and May\u2019s all-time highs of 7.1%, it demonstrates that the country is not out of the woods yet when it comes to inflationary pressures.<\/p>\n<p>Attention now turns to the Bank of England\u2019s next monetary policy meeting on 9\u00a0May.<\/p>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n<div class=\"[ content-section content-section--heading-text ]\">\n  <div class=\"grid-container\">\n    <div class=\"row justify-content-center\">\n      <div class=\"[ col col-12 col-lg-4 col-sd-3 ]\">\n        <h2 class=\"[ content-section__heading content-section__heading--sticky ] js-animate-on-scroll\">FTSE 100 Suffers Worst Session in Nine Months<\/h2>\n      <\/div>\n      <div class=\"[ col col-12 col-lg-8 col-sd-7 ] js-animate-on-scroll\">\n        <p>With markets considering how the Bank of England may see it necessary to hold rates higher for longer, such sentiments fed into the FTSE 100 suffering its worst day in nine months. Rhetoric from Chair Powell which signalled that the Fed may be more hawkish also fed into investor sentiment with his comments coming on the back end of rising unemployment in the UK and increasing geopolitical concern in the Middle East. As such the UK\u2019s blue-chip index sank as much as 1.9% with only a handful of companies closing in the green.<\/p>\n<p>It was a similar story across the channel where France\u2019s CAC index fell 1.4% to end Tuesday\u2019s session at its lowest level in almost seven weeks as Germany\u2019s DAX also sank 1.44%.<\/p>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n<div class=\"[ content-section content-section--heading-text ]\">\n  <div class=\"grid-container\">\n    <div class=\"row justify-content-center\">\n      <div class=\"[ col col-12 col-lg-4 col-sd-3 ]\">\n        <h2 class=\"[ content-section__heading content-section__heading--sticky ] js-animate-on-scroll\">Chinese Growth<\/h2>\n      <\/div>\n      <div class=\"[ col col-12 col-lg-8 col-sd-7 ] js-animate-on-scroll\">\n        <p>Yesterday, Chinese growth was again brought sharply into focus with the latest data release indicating the world\u2019s second largest economy grew quicker than expected. On an annualised basis, GDP expanded 5.3% over the first quarter of the year, against market expectations of a 5% print. On a quarterly basis, the Chinese economy grew 1.6% marking the seventh consecutive quarter of expansion. The latest data gives some room for cautious optimism at a period of time when the health of the Chinese economy has been under scrutiny given fragility in its property sector, high levels of youth unemployment and deflationary pressures.<\/p>\n<p>Sticking with China, The Economist has written an article on the ageing demographic makeup of the country. It leads with the incredible stat that if China\u2019s over 60s were to be a country, at just shy of 300m people, it would be the fourth most populous country in the world. Alongside an aging population, the size of China\u2019s population is also falling alongside the size of its workforce. Perhaps most alarming for Beijing is that its fertility rate currently stands at just 1.2 \u2013 well below the rate needed to maintain the existing population.<\/p>\n<p>China \u2013 which brought in a One-Child Policy in 1979 and maintained it for decades \u2013 now faces the prospect of demographic changes causing a major drag on growth. For example, one source cited in the article indicates that all things being equal, the country\u2019s diminishing labour force could over the next ten years \u201ccost one percentage point of GDP growth\u201d per year.<\/p>\n<p><strong><a class=\"fui-Link ___1rxvrpe f2hkw1w f3rmtva f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f1cmlufx f9n3di6 f1ids18y f1tx3yz7 f1deo86v f1eh06m1 f1iescvh fhgqx19 f1olyrje f1p93eir f1nev41a f1h8hb77 f1lqvz6u f10aw75t fsle3fq f17ae5zn\" title=\"https:\/\/www.economist.com\/china\/2024\/04\/09\/chinas-high-stakes-struggle-to-defy-demographic-disaster\" href=\"https:\/\/www.economist.com\/china\/2024\/04\/09\/chinas-high-stakes-struggle-to-defy-demographic-disaster\" target=\"_blank\" rel=\"noopener\" aria-label=\"Link https:\/\/www.economist.com\/china\/2024\/04\/09\/chinas-high-stakes-struggle-to-defy-demographic-disaster\">Click here<\/a><\/strong>\u00a0for more on the subject.<\/p>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Word of the week Wednesday, higher-than-expected UK inflation, worst day in nine months for FTSE 100, and latest data release for Chinese growth.<\/p>","protected":false},"author":15,"featured_media":1988,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"rp-language":[16],"class_list":["post-7433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-morning-updates","rp-language-en_gb"],"_links":{"self":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/7433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/comments?post=7433"}],"version-history":[{"count":14,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/7433\/revisions"}],"predecessor-version":[{"id":7447,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/posts\/7433\/revisions\/7447"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/media\/1988"}],"wp:attachment":[{"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/media?parent=7433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/categories?post=7433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/tags?post=7433"},{"taxonomy":"rp-language","embeddable":true,"href":"https:\/\/hamiltoncourtfx.com\/it\/wp-json\/wp\/v2\/rp-language?post=7433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}