View more on these topics

PBR: Consumers won’t spend more, says BDO Stoy Hayward

The slowdown in consumer spending will continue and businesses will carry on curbing their investments despite the Government measures announced in the pre budget report, according to BDO Stoy Hayward.

Global macro economist Catherine Macleod says: “Regardless of the measures that the government puts in place to stimulate the economy, we expect to see a continued retraction of consumer spending as the ultra-low savings rate moves upward and the housing market corrects.

“A sharp decline in business investment is on the cards as are rising business defaults. This is part of an inevitable realignment of the economy and it seems to us unlikely that the government measures will be able to actually mitigate the problems.”

But Macleod adds that the report has put forward some positive arrangements to help companies manage their cash flow.

She says: “The difficulty of managing a banking and corporate crisis is that cash needs to flow to companies that are still commercially viable and some measure of adjustment from the previous era will no doubt be necessary.

“By focussing on providing tax breaks and write offs to help companies manage liabilities and hence improve their cash flow situation could well help to ease some of the burdens faced by companies.”


Convertibles set for revival

Once the risk-averse investment climate subsides, the convertible bond space could witness a revival, says Credit Suisse multi-manager co-head Aidan Kearney.

Clear as crystal

It is common that clients facing retirement may consider consolidating their pension rights before taking benefits. However, if the client’s arrangements include a protected pre-A-Day pension commencement lump sum, there is a danger that by consolidating the funds before benefit crystallisation, the client could reduce the amount available.

FAMR – a familiar response

Pension specialist Fiona Tait takes a look at the Financial Advice Market Review and assesses the three areas where it suggests improvements can be made With significant budget changes ruled out (for a while anyway), the pension community briefly turned its attention to the FCA’s final report on its Financial Advice Market Review (FAMR), hoping […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm