As we highlighted in our last update, the UK government presented its ‘mini budget’ in more detail last Friday.

The UK has firmly had the spotlight turned on to it over the past few weeks since the new Prime Minister, Liz Truss, entered 10 Downing Street.

At lunchtime on the 5th September, Liz Truss was announced as the next UK Prime Minister after Boris Johnson resigned back in July.

The gold price has been pulled by two opposite forces over the past few months; geopolitical risks and inflation vs higher interest rates and a firmer US dollar.

The continuing development of technology in the retail sector is having a detrimental effect on ‘old style’ retailers that have in recent years dominated high streets across the UK.

Yesterday the bank of England enacted a 50-basis point rise in interest rates to 1.75% for the UK base rate, the highest rise for a number of years.

The third quarter of the year has started off in the same vein as the first half of 2022, however the focus on markets looks to be subtly changing from an emphasis on inflation to the future consequences that tightening monetary policy may create.

Defined return funds continue to be a key holding within our alternative allocation due to their inbuilt defensive characteristics, with the opportunity to produce alpha over the longer term.

Investments have had a difficult start to the year due to the changing economic conditions which are dominating the headlines and repricing the prospects for assets.

After the UK markets closed yesterday, news got released that some of Prime Minister Johnson’s closest allies resigned from their posts in the cabinet with immediate effect.