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Bank of England cuts growth forecasts… is Brexit really over?

Good Morning,

 

Happy Friday….

 

So the Bank of England cut growth forecasts by the most ever and announced a large stimulus, as policy makers unveiled a stimulus package aimed at containing the fallout from the U.K.’s secession vote.

 

We feel that the low GBP will certainly support export growth, however, many companies will shift employees to other domiciles, impacting the economy.

 

The short-term picture for England is uncertain and we remain underweight

 

Tonight’s US payroll figure is important to provide a clear catalyst for the market.

 

Last night, US equities were flat (Dow -2 points), as a rise in crude boosted energy producers, while corporate earnings buoyed financial companies. The index has hovered near a record in the past few weeks, and is trading at 18.4 times the projected earnings of its members, close to its highest in more than a decade.

Investors are looking for clear signs of economic progress after data last week showed expansion was slower than anticipated in the second quarter, and will look to data on factory orders due Thursday for clues on the strength of the US economy, after a reading on jobless claims came in higher than forecast.

CFOAM Update

 

Please touch base with us to get the formal update from the company

 

Please also see attached an article and link to today’s article and link on Weebit Nano ASX:WBT

 

http://www.afr.com/technology/israeli-flash-memory-disruptor-weebit-nano-raises-5m-lists-on-asx-20160802-gqjq7v

What's on today?

Virgin Australia full-year results, RBA statement on monetary policy 

The SPI is up 9 points this morning

 

Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business

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