The US presidential election result caused the world’s financial markets to go on a roller-coaster ride over the preceding days.
The price of the Mexican peso took a record-breaking nosedive and financial markets tumbled as the shock Trump win was announced. Financial markets rallied later in the week, but started to settle down as the week drew to a close.
The Trump-factor has also influenced investors, as many have rushed to buy gold bullion to safeguard their money. An online bullion market reported $4.1billion of sales in the three hours leading up to Trump’s victory. That was more than the whole of the previous day’s trading.
In the housing market, Halifax reported a bumper October with the average UK house prices up by 1.4% on the previous month.
October’s house prices are up by 5.2% on the same time last year. It is believed that the continued low cost of mortgages and high demand for houses is driving the price rises.
In the world of pensions, Tata steel has been criticised for considering closing its pension scheme before it is due to make a multi-million pound pay-out next year.
The pension scheme is one of the biggest in the UK with a reported 130,000 members and liabilities of over £15billion. It is the biggest stumbling block to a rescue deal for Port Talbot steelwork’s owners.
The Office for National Statistics is going to use a new measure of inflation from March next year to better-reflect the everyday price changes, including the cost of owning a home.
The new measure, called CPIH, adds changes to the cost of owning a home to other price fluctuations tracked by the Consumer Price Index (CPI).
CPI does include the cost of renting and running a house, it leaves out other costs such. CPIH will include the “costs of housing services associated with owning, maintaining and living in one’s home”.
It is believed that the change will show that inflation is higher than currently reported.