UK on course for fastest growth since 1973

29 October 2021
relevant to

The noise

  • Chancellor of the exchequer Rishni Sunak said the UK is on course to post its fastest growth since 1973 this year as he started delivering a budget he said will help the nation bounce back from the pandemic. Britain’s economy, which contracted almost 10% last year, is set to grow 6.5% in 2021, according to a forecast from the independent office for budget responsibility.

  • The U.K. reported its highest daily death toll from the Coronavirus since the beginning of March, adding to fears that tighter restrictions might be needed this winter. The number of people hospitalized is also at the highest since that period. Steadily increasing hospitalization and death rates have put pressure on the government to enact its “Plan B”, which could include mandatory face coverings and a recommendation to work from home.

  • Novavax Inc. filed for the authorization of its vaccine in the U.K., the first submission of a protein-based shot against disease in the region and Merck & Co. reached a licensing agreement aimed at widening access to its promising Covid pill.
     

    The numbers 

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The nuance

Third-quarter earnings continued this week with  some of the most heavily weighted companies in the S&P 500 delivering their quarterly results. With markets powered by impressive profit reports from financials and generally upbeat economic news so far, big tech names such as Amazon and Facebook were in the spotlight as they released their earnings data. The earnings avalanche saw all big companies beating expectations yet most received a negative response from investors with concerns around ongoing demand for products and worries that they have already hit peak earnings growth and power.

Amidst ongoing supply chain issues and subsequent rising inflation, U.S. consumer confidence weakened modestly in October with the University of Michigan’s preliminary sentiment index falling to 71.4% and the U.S. economy expanding at an annualised rate of just 2% over the past few months. As companies rebuild their inventories, demand should remain strong, and activity should pick up.
 

Quote of the week

“’Unseasoned fish and chips - Wetherspoons pubs run out of salt amid 'supplier disruption' with punters fuming” Source: The Daily Express
Brexit might have affected the Wetherspoons pub chain in a very damaging way as beer deliveries and now salt are both lacking. Scores of Wetherspoons punters have taken to social media to complain about their local pubs running out of salt as the haulage crisis continues to create supply shortages. Pub lovers were left fuming after multiple Wetherspoon boozers ran out of salt for their grub. Diners took to social media to complain about the lack of sachets containing the popular condiment, with the Tim Martin-founded chain reportedly blaming "supplier disruption".

One Twitter user bemoaned having to eat their fish and chips "unseasoned“. The punter, at a branch in Piccadilly, Manchester, added: "I had to settle for vinegar instead. It just wasn’t the same — my chips were ruined."

After one customer became outraged at a pub in Rochester, Kent, they were told "it hasn't been on the lorry for two weeks".

It comes after firm chiefs said they were looking for new providers for certain food products in August.

Source: The Daily Express

Phil Smeaton
Chief Investment Officer

All investment views are presented for information only and are not a personal recommendation to buy or sell. Past performance is not a reliable indicator of future returns. Investing involves risk and the value of investments and the income from them, may fall as well as rise and are not guranteed. Investors may not get back the original amount invested. 

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