Good morning and welcome to your Morning Briefing for Tuesday 15 October 2024. To get this in your inbox every morning click here.
Lowest wage growth in over two years fuels interest-rate speculation
Wage growth in the UK has slowed significantly, with pay excluding bonuses rising by just 4.9% between June and August compared to a year ago.
This marks the slowest rate of wage growth in over two years – only 3.8% when bonuses are factored in.
These figures, released today (15 October) by the Office for National Statistics (ONS), have fuelled expectations that the Bank of England may cut interest rates in November.
‘Polluter pays’ proposals forcing buyers to do more due diligence
The Financial Conduct Authority’s “polluter pays” proposals are forcing consolidators to carry out more due diligence when buying advice firms, Gunner & Co managing director Louise Jeffreys has suggested.
The FCA set out its “polluter pays” proposals in November last year. They require personal investment firms to set aside capital to cover compensation costs.
In a Dear CEO letter sent to advice and investment firm owners last week, the regulator said it has seen “significant liabilities” fall to the Financial Services Compensation Scheme (FSCS).
What advisers can learn from groundbreaking new Apple Intelligence
Apple’s iOS 18 has just dropped and, with it, a major upgrade that could make Siri smarter than your average human — or at least better at answering questions.
Apple has hinted at even more exciting updates down the road. Think custom emojis and even deeper Siri integration with your calendar, photos and messages.
Imagine asking Siri when your mum’s flight is landing and it knows right away. No more hunting through emails.
So, asks Chris Davies, founder and chief executive of Model Office, what can our industry learn from this new wave of smartphone generative AI?
Quote Of The Day
A slightly higher rate of increase is welcome for pensioners, though will be an unwelcome £100m extra cost for the Chancellor as she prepares her Budget
– Steve Webb, partner at LCP, comments on the revised figures from the ONS for average earnings growth in the three months to July this year – a number used for the ‘triple lock’ calculation
Stat Attack
A new report, The Women and Wealth Report 2024, titled The Real Cost of Inequality, reveals financial gaps between men and women that span investments, pensions and inheritances.
29%
of women save less than £100 each month, versus 15% of men.
17%
of women feel very confident about achieving their long-term financial goals, compared to 29% of men.
53%
of women cite a lack of extra cash as their main barrier to investing.
26%
of women have a stocks and shares ISA, compared to 45% of men.
13%
of women are very confident they’ll be able to leave an inheritance, compared to 22% of men.
Source: Schroders Personal Wealth
In Other News
A survey by ARK Invest Europe found that 80% of European professional investors are indifferent to the active versus passive ETF debate, focusing instead on selecting the best product.
The survey of 180 investors revealed that only 10% favoured active or index ETFs exclusively.
The most popular investment themes were AI and Robotics, attracting 83% of respondents, followed by Cybersecurity (61%) and Innovation (57%).
Sustainable Infrastructure (41%) and Sustainable Food (40%) also ranked highly, highlighting investor interest in technology and sustainability.
Rahul Bhushan, managing director at ARK Invest Europe, said: “This survey, despite its small sample size, challenges the often-simplistic narrative of active versus index investing.
“It’s not a binary choice. Instead, professional investors emphasise the importance of well-constructed ETF products and the quality and clarity of the investment process, irrespective of whether it is active or index.”
PM does not rule out NI rise for employers (BBC News)
UK pledges regulatory overhaul to try to win over investors (Reuters)
The sick man of Europe is… Europe (Bloomberg)
Did You See?
Investors’ ‘love affair’ with environmental, social, and governance (ESG) is “continuing to cool” according to research from the Association of Investment Companies (AIC).
AIC’s ESG Attitudes Tracker revealed the number of private investors who said they consider ESG when it comes to investing has dropped for the third year in a row.
According to the Tracker, less than half (48%) now think about ESG, compared to 66% in 2021.
Over two fifths (43%) of investors said they consider themselves “fans” of ESG investing, down from 60% in 2021, 51% in 2022 and 50% in 2023.
Only 17% of respondents felt ESG investing is likely to improve performance, down from 22% last year.
Read the full story here.
