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Shares still down despite positive news on the economy Go compare with our comparison table

Shares still down despite positive news on the economy

28 September 2010 / by Paul Dicken

Shares in London continued to be depressed today, despite figures confirming strong growth in the UK economy during the second quarter of 2010.

As trading opened on 28 September just two companies on the FTSE100 were trading shares at higher prices.

Prices were boosted slightly by reassuring data from the Office for National Statistics which followed timely backing for the coalition government’s spending plans from the International Monetary Fund on 27 September.

The ONS confirmed that GDP had increased by 1.2 per cent in the second quarter of 2010, unrevised from the provisional figures.

This meant that gross domestic product was 1.7 per cent higher between April and June in 2010 compared to the same period in 2009. The strong growth suggests the economy has bounced back strongly from the recession but economists continue to predict slowing growth into the autumn.

ONS figures said construction output rose by 9.5 per cent up from the 8.5 per cent estimate, with production industries remaining unrevised at 1.0 per cent growth, Manufacturing output increased by 1.6 per cent.

On 27 September the International Monetary Fund said the UK government’s budget plans to significantly reduce the deficit in the public finances were right to ‘ensure debt sustainability.’

“The plan greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery,” the IMF said.

The coalition government will carry-out a spending review on 20 October, setting out the specific areas where funding will be cut. Chancellor George Osborne is planning to ‘balance the books’ by 2014-2015.

The IMF said inflation which was likely to remain above the 2 per cent target into next year but the increase was due to temporary affects such as VAT rises and it expected inflation to gradually revert back towards the target level.

Markets across Europe were also down as trading opened during on 28 September, with continuing concerns in the Eurozone.

The credit rating agency Moody’s announced on 27 September that it was downgrading the rating given to the bank’s bonds and debt, with concerns investors might have to bear costs related to the troubled bank.

© Fair Investment Company Ltd

 Product NameISA OptionIncome YieldMore Info
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Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
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Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
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Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
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M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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