24th October 2016

Fidelity Perspectives: The week ahead, Marmite tantrum

THE WEEK AHEAD

Anna Stupnytska, Global Economist at Fidelity International, highlights what she will be focusing on this week:

• 27 October – UK Q3 GDP and October UK CBI distributive sales survey

Anna’s view: “Growth in the first full quarter following the Brexit vote will be closely watched, although it is unlikely to show the full impact from the referendum fallout. The economy has been relatively robust, with sterling bearing the biggest brunt so far. The CBI survey will provide one of the first data points for October.”

• 28 October – French and Spanish Q3 GDP and German flash inflation for October

Anna’s view: “France saw a contraction in Q2 but data has been improving since—Q3 GDP should confirm that the economy is out of the negative growth territory. It will be interesting to see if Spain’s robust expansion in the last 3 years still has momentum. Finally, German CPI will be the first inflation reading for October, closely watched by the ECB.”

• 28 October – US Q3 GDP and employment cost index

Anna’s view: “US economy got off to a slow start this year, but growth in the second half should be moderately faster. Some acceleration which is broad-based across the main GDP components would give the Fed further confidence that the economy is ready for another hike later this year. The employment cost index—also closely watched by the Fed—will give an important indication of wage pressures in the run up to the December meeting.”

Follow Anna on Twitter: @AnnaStupnytska

INSIGHTS FROM FIDELITY INTERNATIONAL’S INVESTMENT TEAM

The Marmite tantrum

The old cliché with marmite is that you love it or you hate it. The same seems to be the case with the value style of investing. Whilst most investors see no good reason to move down the quality spectrum, Matthew Jennings, investment director, discusses the benefit of holding a value fund.

Investment Commentary, Investments