19 September 2014

David Nicol, Chief Executive of Brewin Dolphin said:

"Since our merger with Bell Lawrie and Stocktrade in 1993, we have expanded the Brewin Dolphin business and grown our client base and funds under management both north and south of the border.  Following the result of the Scottish Referendum we continue to focus on the delivery of our strategy, to be the leading provider of personal discretionary wealth management throughout the UK.

We will follow closely the discussions surrounding the additional tax powers to be devolved to the Scottish Parliament under the Devo Max proposals and any impact these may have on savings incentive schemes such as pensions and ISAs.  We will do whatever necessary to ensure our clients in Scotland continue to benefit from the best possible advice for their investments and tax arrangements, as for all our clients throughout the UK, Eire and the Channel Islands."

Market Comment

The people of Scotland voted to retain their place in the United Kingdom.  Futures began to price in equity gains as soon in the early hours of the morning. The pound continued rallying but is seeing profit taking this morning. That reflects the extent to which most markets had actually positioned for a No vote.  Now the implications bear some consideration.

Scotland had suffered from weaker capital flows and weaker investment over the months leading up to the referendum and now it can expect some pick up.  The result is perceived as making the UK's continued membership of the EU more likely although of course that may still face a referendum.  Much will depend upon the result of next May's election which remains too close to call. A hung parliament looks the most likely outcome based upon current polling, with the UKIP having overtaken the Liberal Democrats meaning the eventual government is far less obvious than it was in 2010.  With eight months to go the Prime Minister will try to push through the promised devolution legislation. Whether and how the new powers will be used remains is open to some questions.

Back in the economic world, UK retail sales were a touch weaker than expected rising around 4% which is still double the ten year average pace.

Moving over to the States the market has continued to make new all-time highs and closed towards its session high.  That was off the back of some pretty mixed economic data. Continuing jobless claims recorded their lowest reading since 2007 while initial jobless claims showed their second lowest reading of the last ten years.  The evidence, you would think, was becoming pretty incontrovertible, that the US labour market is tightening.  Housing starts and building permits, on the other hand, were weaker than forecast and seem to be showing declining momentum since the whole tapering suggestion pushed bond yields up last May.  We remain positive on the US economic recovery and the prospects for US listed corporates with a long period of slowly accelerating expansion lying ahead.

Guy Foster, CFA

-ENDS-

The value of investments can fall and you may get back less than you invested.

Past performance is not a guide to future performance.

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

For further information please contact the press office on 020 3206 3330



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