Why inflation is set to make a comeback

Why inflation is set to make a comeback By Bill Blain It's been a long, hot September, and global activity remains muted. The Fed has put tightening on Ice with the market now anticipating modest interest rate rises through next year, while the Bank of Japan is chucking the kitchen sink of extreme monetary policy at the problem of deflation. While markets struggled with a host of conflicting signals and global events, we were sitting sweltering in the office wondering about where the UK economy goes next following the Brexit vote. One of the KEY issues we are pondering is the extraordinary volatility of UK inflation linked Government bonds – the so-called Linker Gilts market. It's a key indicator of future inflation expectations. Although there is a "feel good" factor after the world didn't immediately end on the Brexit vote, and a discernible feeling that recovery might be around the corner, the latest numbers from the Bank of England show inflation remains stubbornly flat at 0.6%, far short of the Bank of England's 2% inflation target. The last data was well shy of the modest 0.7% expectations economists had for the last set of inflation numbers… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 7,070.88, a decrease of 26.62 points. The FTSE 250 rose 94.30 points to finish at 18,073.20. The FTSE All Share dropped 8.69 points to finish at 3,839.02. The FTSE AIM All Share ended the day at 826.98, up by 1.04 points. Fashion house Ted Baker (TED) reported that revenues for the 28 weeks ended 13th August climbed by 14.4% to £259.5 million driven by strong demand in North American and Asian markets as well as a significant improvement in online performance. Profits before taxation climbed 20.5% to £21.5 million and management said they were confident that this growth would continue. The shares rose by 115p to 2,530p. Check out our brand-new October issue! Click HERE to read. Shares in polymer specialist Victrex (VCT) rose 8.08% to 1,753p after the company said that its performance had improved during the second half of the year and that results for the 12 months ended 30th September would be in line with expectations. Overall group revenues dropped by 4% to £252 million due to a sharp decline in consumer electronics sales. Retailer Brown (N.) (BWNG) saw its shares shoot 16.54% higher to 205p as its adjusted pre-tax profits for the first half of the financial year beat consensus forecasts. Group revenues for the six months ended 27th August crept up by 1% to £429.4 million. Management said that the period had been challenging for the entire sector, but they were confident in hitting full-year expectations. Tomorrow's news today Hays (HAS) will publish interim results. Quote of the day "To do a common thing uncommonly well brings success." - Henry J. Heinz Latest Stories Trade the global currency market without losing your shirt By Vince Stanzione This month we take a look at the global currency markets and how you can profit from them – starting with a small amount of capital and avoiding one of the biggest mistakes new FX traders make... Click Here To Read The Full Story Sports Direct: Gap support should lead to 350p By Zak Mir Someone who walks around with £1,000 in £50 notes is clearly a person who is familiar with the concept of cashflow and a healthy balance sheet. Mike Ashley stepping back into the role of CEO at Sports Direct should eventually prove to be a positive for the company.… Click Here To Read The Full Story Kibo Mining – Why the punters have got it all wrong By John Cornford The key misconception behind the chat board 'projections'  for Kibo Mining is a failure to understand the disconnect between a 'project' and the company 'owning' it…     Click Here To Read The Full Story Coal-to-power – Still misunderstood by investors By John Cornford Here is an update with particular mention of where Kibo Mining and Ncondezi Energy have got to, and a repeat tutorial on how not to value such companies. If their projects go ahead, either company could see their shares reach a few multiples of current levels… Click Here To Read The Full Story Strategic Minerals: Extended shuffle points towards 1p By Zak Mir There are a few stock-market clichés to be applied to the latest rise at Strategic Minerals, especially from a technical perspective… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. 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