Beaufort Group heroes complete the National Three Peaks Challenge
Over the hottest weekend of the year, when the BBC reported “Scotland breaks temperature record” a team of ten people from the Beaufort Group of Companies, and four friends and family members attempted to complete the National Three Peaks Challenge in 24 hours, all in aid of the charity Dreams Come True. The challenge involves climbing the highest peaks in Britain – Ben Nevis in Scotland at (1345 metres above sea level), Scafell Pike in England (978m) and Snowdon in Wales (1085m).
The team, led by Beaufort Investment's Head of Research and Portfolio Construction, Shane Balkham, travelled to the foot of Ben Nevis Scotland and began the ascent at 11.40 on the morning of Saturday 30th June. All but one of the party made it to the top of Ben Nevis in four hours. The party then travelled to Scafell Pike, arriving at 1.30am and leaving at 7am, arriving at the foot of Snowdon at 11.30am. The team reached the summit of Snowdon at 2.30pm on the afternoon of Sunday 1st July.
Five of the team managed to climb all three peaks: Shane Balkham, Jon Creasey, MD of Beaufort Financial (Fareham) and Chris Masters, MD of Talking Finances and guests, Simon Rogers and Waren Plummer.
Eight of the team climbed Ben Nevis and Scafell Pike; those listed above, along with Celeste Ainge, Head of Marketing, Beaufort Group and guests Kate Bennett and Jonathan Crayston.
The rest of the team was:
- Andrew Bennett, CEO, Beaufort Group
- Tony Hicks, Head of Sales, Beaufort Group
- Emma Clarke, Senior Fund Analyst, Beaufort Investment
- Rachel Bennett, Project Manager, Beaufort Group
- Graeme Bone, Director, Beaufort Financial (Reading)
- Anton Boshoff, Quality Assurance Specialist, Beaufort Group
Andrew Bennett, CEO, Beaufort Group said:
“The heat was unprecedented; the temperature at the start of the challenge was 33 degrees. Not everyone in the team made it to the top of all three peaks, but we all stretched ourselves to the limit and despite the blood, blisters, aches, pains, sweat and tears, there was plenty of laughter too.
“I’m really looking forward to sharing details of the children who will have a dream come true thanks to our efforts; I hope others will enjoy them and consider getting involved in other fundraising events organised by the charity: https://www.dreamscometrue.uk.com/47/fundraising”
Martyn Paul, MD of Advocate Events who organised the entire trip commented:
“I thoroughly agree with our mountain leader, Darren Hunt who said that the team spirit was awesome, and the fact that the CEO joined in the fun is testament to quality leadership. These kinds of experiences bring the best and sometimes worst out of us, but they are a true test of our character. As a group, new relationships are formed and old ones reaffirmed. Above all, their common goal was to raise £1,000’s for Dreams Come True and I’m honoured to say many children’s lives will be touched by the generosity of this band of brothers and sisters. It’s been a privilege.”
Celeste Ainge, Head of Marketing, Beaufort Group, added:
“As ever, these things don’t happen without a lot of planning and support. So, huge thanks go to Martyn and Joanna Paul from Advocate Events; to Martin Neal from Dreams Come True who kept us motivated with inspiring stories about the children the charity has helped; to Andrew Bennett, our Group CEO who enabled us to run the Surrey Peaks training walk; and to Shane Balkham and Rachel Bennett at Beaufort Group who have done a huge amount to raise money with an online auction and bar quiz.
“So far, we’ve raised over £10,000, (not including Gift Aid) but we want to double that by the end of the July. Donations are being accepted until the end of July at: https://virginmoneygiving.com/fund/beaufortgroup”
Beaufort Analysis 286 - Ain’t no mountain high enough
One of China’s major indices, the Shanghai Composite, experienced a sell-off last week, bordering in correction territory as the relationship between the US and China continues to be strained. China’s central bank, The People’s Bank of China, has increased liquidity not only for fears of a trade war, but as the economic outlook in China weakens. Added to this, is a weakening currency in China, which has reached its lowest level in 6 months, and the health of the Chinese markets is not looking so positive. There is speculation that the central bankers in China are purposefully weakening their currency to harm US imports. For the month of June, Chinese Renminbi experienced its greatest ever monthly fall against the dollar.
At least 5 of the major carbon dioxide factories across Europe and the UK have simultaneously shut down production for maintenance, during a period of peak demand, raising concerns around the impacts on businesses. As the summer intensifies and sporting events keep the country gripped, the demand for beer and other carbonated drinks is elevated and the supply is tightening. Booker, Tesco owned cash and carry, has started to limit beer sales as supply has restricted. Another industry which has also started to suffer is farming; CO2 is used in meat packaging to lengthen its shelf life and to stun animals before slaughter. Whilst the impacts are currently minimal to consumers, and supply is expected to return to normal in early July, there are no doubts that this will have affected businesses in these industries, with smaller businesses expecting a greater blow.
The Office for National Statistics (ONS) released upgraded growth figures for the first quarter last week, which were 0.2% rather than the estimated 0.1%. It is thought that these better figures are based on a change in the way the ONS measure the construction sector. Based on this better than expected growth, sterling appreciated against the dollar as investors’ expectations of a further rate rise in August grow again.
Looking to the week ahead, the prime minister, Theresa May, and other senior ministers are meeting at Chequers to discuss Brexit and a possible customs deal. There are reports that there is an alternative customs model to be discussed at the summit, but no further details have been given at this stage.
Speaking of mountains, a team from Beaufort Investment has been doing the National Three Peaks Challenge this weekend to raise money for Dreams Come True. If you would like to sponsor the team please visit: https://uk.virginmoneygiving.com/fund/beaufortgroup
Beaufort Analysis 285 - Red Flags
Last week marked the 2-year anniversary since the UK voted to leave the European Union in the referendum vote. Whilst the economic impact of Brexit on the UK has been widely debated, the UK has been one of the slowest growing developed economies in the 2 years since the vote, and UK households are now worse off than prior to the vote. Inflation hit a high over 3% during 2017 as sterling fell, increasing the costs of imports. Whilst sterling reached is pre-Brexit level in April of this year, sterling continues to fluctuate with the uncertainty surrounding the Bank of England (BoE) and base rate expectations.
The UK government is also yet to decide on much of the details of leaving the European Union, with no deal on trade or the Ireland border yet agreed. However, the week ahead sees an EU summit, with a session from the European Council to discuss the progress towards a Brexit deal. Whilst no deal has yet been agreed so no details on the funding, Theresa May has announced that the NHS is due to receive an extra £20bn a year by 2023, which would be partially funded by a ‘Brexit dividend’.
Last week, the Bank of England once again voted to keep interest rates at their current level of 0.5%. As economic data continues to disappoint, the members of the Monetary Policy Committee voted 6 to 3 to keep rates as they are. However, there is increased expectations that rates will be raised in August as this is the first time since 2011 that Andy Haldane, the BoE’s chief economist, has voted against the majority.
As tensions between the US and China continue to rise towards a trade war, Asian indices have fallen, with Chinese stocks in Shanghai and Hong Kong the worst affected. As well as trade tariffs, the US has decided to limit the investment from China in US companies as the Trump administration continues to aggravate the Far Eastern country.
Beaufort Analysis No. 284 - Steady as she goes…
Last week was billed as uneventful, although in practice, it was anything but…
The US-North Korea summit appears to have been a success, albeit light on detail at this stage. President Trump and Kim Jong-un signed a two-page document committing to the complete denuclearisation of the Korean Peninsula. Trump later confirmed that the US would suspend military exercises with South Korea but confirmed troops are set to remain in the peninsula and could be redeployed if denuclearisation talks breakdown. In other US-related news, The Fed, as expected, raised rates by 25bps.
The UK made progress in relation to Brexit by winning a crucial vote in the House of Commons. The lower house rejected an amendment put forward by the upper house which would have meant that the UK government would have to accept the direction of Parliament if no deal was reached with the EU27. However, this was not without compromise; to win the vote Parliament were offered significant influence/oversight over negotiations which means we are likely heading towards a softer Brexit. UK unemployment data for April also remained steady at 4.20%.
Playing catch-up with other Central Banks, the ECB announced their intention to end QE by December 2018. The ECB are currently buying €30bn of assets per month but will reduce this to €15bn from September with purchases expected to cease at year end. Interest rates are expected to remain unchanged until mid-2019 with President Draghi confirming that this is subject to change at any time if risks to the economy materialise. Unsurprisingly, the Euro fell notably against the Dollar and less so against Sterling.
Beaufort Analysis No. 283 - A Tale of Two Summits
As President Donald Trump prepares for an historic meeting with North Korean leader, Kim Jong-un in Singapore, he leaves behind the G7 summit in disarray after he withdrew his support for the joint communiqué. At the tense meeting in Quebec last week, leaders of the seven nations signed a statement agreeing their need for “free, fair and mutually beneficial trade” and the importance of fighting protectionism, in light of Trump’s steel and aluminium tariffs. However, at the subsequent news conference, Canadian Prime Minister Justin Trudeau reasserted his opposition to the US tariffs which consequently led to the President retracting his endorsement of the communiqué and issuing retaliatory tweets personally aimed at Trudeau and Canada’s own tariffs.
Tomorrow’s summit in Singapore, the first between a sitting US President and a North Korean leader, is expected to include discussions on the denuclearisation of the Korean peninsular in return for improving the nation’s economy, although there is no formal agenda. Even North Korea’s state media, which has played down the meeting, said the pair will discuss a “permanent and durable peace-keeping mechanism.”
Back in the UK, Prime Minister Theresa May is struggling to unite her party over a Brexit strategy, ten months before Britain is due to leave the European Union. The EU Withdrawal Bill repeals the 1972 European Communities Act, yet the Labour Party is urging the Tory back-benchers to defeat Mrs May in parliament by backing a proposal for Britain to stay in the EU’s single market and create a new customs union which could reduce border friction after Brexit. The votes in the Commons this week is seen by many as a test of Theresa May’s leadership.
Away from politics, Britain’s economy is on course to lag behind its international peers, according to a forecast from the Confederation of British Industry. The world’s fifth largest economy looks set to grow by only 1.4% this year, compared to 2.2% for the Eurozone and 2.8% for the US. Nevertheless, an interest rate rise in August now looks to be on the cards.
Retail sales recovered in May with the highest growth in four years. With two bank holidays and finer weather, like-for-like retail sales grew 2.8% year-on-year from a fall of 4.2% in April. However, the British Retail Consortium warned that the environment remains extremely challenging by historic standards and this was evidenced by House of Fraser announcing the closure of 31 stores and Poundworld appointing administrators.
Trading on the London Stock Exchange was delayed by an hour last Thursday due to a technical issue; the first major outage of its kind in seven years. On Friday, European markets experienced a broad sell-off as investors were spooked by the prospect of a tightening of financial conditions and political risk, resulting in the FTSE 100 Index falling for a third straight week. Yet the main index is currently only 2% lower than its all-time high and the FTSE 250 Index is reaching new highs.
Beaufort Analysis 282 - “The Italian Job”
Months of political deadlock in Italy ended on Friday with Giuseppe Conte being sworn in as the new prime minister. This marked a significant reversal from earlier in the week, when President Sergio Mattarella vetoed Conte’s pick for finance minister, sending both Italian and European markets into a tailspin. While the media was concerned with the potential apocalypse that faced Europe, the two anti-establishment parties agreed on a list of ministers drawn up from both the Five Star Movement and Right-Wing League. It would appear that the recent market movements in European markets reflected the political uncertainty within Italy, rather than Italy defaulting or leaving the EU.
The week had stored all its headlines for Friday, as along with the news from Italy, we had other issues in Europe with Visa suffering a service disruption which stopped card transactions being processed. £1 in every £3 spent in the UK is spent on a Visa card; systems were down for around 6 hours during the busiest period of the week which wreaked havoc for consumers and businesses alike. Malicious activity was quickly ruled out and Visa admitted a hardware failure was to blame.
The US implemented the much-threatened steel and aluminium tariffs on Friday, with national security concerns to blame. This has sparked outrage and potential retaliatory levies from the affected allies of the US, including the European Union, Canada and Mexico.
Friday also gave good tidings for the US with the lowest unemployment rate in 18 years. This is likely to pave the way for another interest rate rise by the Federal Reserve later this month.
Beaufort Analysis No. 281 - Stepping stones
Updated UK inflation data for April was disappointing, following the timing of Easter, which impacted air fares and consequently, inflation. Whilst inflation fell to 2.4%, soft drink prices did increase after introduction of the new sugar tax. Sterling also depreciated after this inflation news. Despite this fall in inflation, UK retail sales increased in April after a poor month for March, suggesting the economy is not as unhealthy as it may seem given the data for the first quarter. Retail sales for April rose by 1.6% on those for March, but consumer confidence remains low, with a key measure reported to have decreased in April.
As the news of Brexit has been more subdued recently, Mark Carney, the Governor of the Bank of England, has been weighing in with a warning that a disruptive Brexit could have big implications for the economies of both the UK and European Union as inflation could crawl higher. Carney has stated that Brexit has already cost the UK 2% in economic growth, with household incomes £900 a year worse off than had the outcome been to remain in the EU.
President Donald Trump has cancelled his summit with Kim Jong Un, North Korea’s leader, on the 12th June in Singapore, following the North’s statement last week. The North has responded explaining they are open to talk to Donald and the US as anytime. Whilst this is disappointing for the US, the Korean peninsula and the planet as a whole, it cannot be seen to be unexpected given the volatility of their relationship. North Korean officials are expected to travel to the US this week. Following this news, Asian equities, in particular South Korean equities, suffered a small loss with the major Asia indices reporting decreases.
Michael helps Beaufort Group colleagues raise money for Dreams Come True with a ‘No Peaks’ Challenge!
Michael Cox, Professional Standards Manager at Beaufort Financial, has a condition called Retinitis Pigmentosa which means that he currently retains a visual field of 5%. So, Instead of taking part in the National Three Peaks Challenge with his colleagues, Michael will be undertaking a ‘No Peaks’ Challenge to raise money for charity Dreams Come True. His challenge will involve him walking twice the distance of the Three Peaks Challenge.
Michael, who is registered as blind says: “Whilst I won’t be walking up any mountains, I’m convinced I will actually do a fair bit more than 46 miles, but it seemed a nice number being double the distance of the Three Peaks. Dreams Come True is a fantastic charity which enriches the lives of children and young people with serious and life-limiting conditions across the UK by making their dreams come. This may be through medical or sensory equipment or a trip of a lifetime. Fulfilling a dream provides a positive focus and empowers young people and their families with new enthusiasm and strength to deal with the ongoing daily struggles of illness, grueling hospital treatment and sometimes sad loss.”
If you would like to sponsor Michael, please visit: http://uk.virginmoneygiving.com/MichaelCox25
Beaufort Analysis No. 280 - Markets rise despite slowing economy
Mentioned in last week’s Beaufort Analysis, oil remains in the headlines with the price of Brent crude reaching $80 a barrel last Thursday. This is due to the continuing concerns that Iranian exports could fall because of renewed US sanctions, reducing supply in an already tightening market. Donald Trump’s decision this month to withdraw from an international nuclear deal with Iran and revive sanctions that could limit crude exports from OPEC’s third-largest producer, has boosted oil prices. This is in addition to the already strong global demand and plummeting Venezuelan production; the latter potentially worsened by the alleged rigged re-election of President Nicolas Maduro which could lead to further sanctions.
The number of low-paid workers in the UK has hit its lowest level since 1982. Thinktank Resolution Foundation said the share of employees earning less than £8.50 a hour had fallen to 18% due to the introduction of a higher minimum wage. The Office for National Statistics (ONS) announced that wages rose at an annual rate of 2.9% in the three months to March, faster than inflation for the first time in more than a year. Over the same three-month period, the inflation rate was 2.7%. The ONS also confirmed that the employment rate – the proportion of people aged 16 to 64 years in work – was 75.6%; the highest since 1971.
Nevertheless, UK productivity fell during the first three months of 2018, contrary to the strong second half of last year, with manufacturing output slowing, as both domestic and export orders declined. This follows the previous week’s announcement that the construction sector had contracted at its sharpest rate for more than five years, as poor weather hit the building industry. This further addition to slowing economic growth providing the backdrop to the Bank of England’s delay in raising interest rates.
Finally, despite the slowing economy, UK markets have reached all-time highs as measured by both the FTSE 100 and FTSE 250 Indices, surpassing their January levels; the main index hitting a new closing high last Thursday of 7787 and the 250, going one better, by closing above 21,000 for the first time. As we write, both indices are extending their gains further.
Beaufort Analysis No. 287 - Actions speak louder than words…
Trade war rhetoric between the US and China continued to gain momentum last week with a noticeable shift in the Yuan; the currency moved by over 1.1% in a 24-hour period against the US dollar causing the Peoples Bank of China (PBoC) to release a statement. PBoC’s Head of Financial Research was quick to defend the currencies movement stating that the shift should not be taken as guidance of the central bank’s intentions and that the move was reflective of a change in market expectations based on the rise of external uncertainties. In a formal statement to the press the PBoC confirmed their position regarding trade wars and currency, “China upholds multilateralism, globalisation, free trade and rule-based international guidelines, and will not make the yuan’s exchange rate a tool to cope with trade conflicts”.
It was Independence Day in the US on Wednesday calling a welcome half time on trade war discussions. Unsurprisingly, Trump was quick to reignite discussions following the national holiday and wasted no time on imposing tariffs of $34bn on Chinese goods on Friday of last week. China responded swiftly to Trump’s attack imposing tariffs of their own, only to be countered by Trump with a threat of a further $500bn in trade tariffs; which equates to all the goods that the US imports from China. In a move, which can only be described as leftfield, China are seeking an ally in the EU to form a united front against Trump and his escalating trade policies. China has offered preferential treatment to the EU and acceleration of investment negotiations; the latter of which would be particularly favourable. In a most unlikely union, the two could form a coalition against the US.
Fresh from their win against Colombia last Tuesday, where Harry Kane ably scored a penalty in the 57th minute for England, the young team proved that they can win on penalties and proceeded to the quarter-final against old rivals Sweden. The nail-biting match between England and Sweden took place on Saturday and buoyed by their win against Colombia, England defeated Sweden 2-0 with all to play for in the semi-finals against Croatia.
While England is consolidating their position in the World Cup, the same cannot be said of the UK’s position on the world stage, arguably we may have scored an own goal. Yesterday at midnight, David Davis, Brexit secretary, resigned citing he did not want to be a ‘reluctant conscript’. Davis has long been opposed to Theresa May’s soft Brexit position and was critical of the ‘progressive dilution’ of the government’s strategy. Critics of the UK government were quick to react to this news which will have undoubtedly cast aspersions on May’s credibility.