News

Please see the below article from Tatton Investment Management providing a brief analysis of markets and the key news from global economies over the past week.

Overview: The UK is not growing in real terms or nominal terms

The UK is in a technical recession, defined as two quarters of real growth contraction. Meanwhile, last week’s release of UK jobs market data for December showed surprising tightness. The unemployment rate fell back to 3.8% rather than the expected rise to 4%. Both labour force data and GDP data are suspect, but price data are a bit more reliable. The measure of prices used to compute GDP data on a real basis is called the deflator and differs from the more usually quoted consumer price indices. Last quarter’s deflator growth was very low at less than +0.7% quarter-on-quarter annualised, indicating that nominal growth is now very weak as well.

The market is pretty convinced interest rate cuts will have happened on or by the 20 June Bank of England Monetary Policy Committee (MPC) meeting. We think there is enough fuel for a rate cut either at the meetings scheduled for 21 March and 9 May, but the dynamics of the MPC make this unlikely. As we discuss later, there is a high probability that tax cuts will happen on 6 March and that the ensuing small fiscal boost might lead the MPC to delay.

A number of emerging market central banks have already started easing rates. but developed markets are being dominated by the path of US rate expectations. Perhaps the similarities in the tightness of labour markets in the UK and Europe might cause one to think this is reasonable. Yet the paths of domestic inflation and money supply growth are differing enough to suggest that the European Union and the UK will have to forge their own paths, and that the US be stuck at higher rates.

Meanwhile, for Europe and the UK, energy prices are a big factor in business input costs. The rise in oil prices might make one think things are going badly, and that energy costs are rising. The good news is that natural gas prices continue to decline, and that is a decisive factor in the downswing in electricity prices. This will benefit manufacturers as long as demand holds up. Signs are that manufacturers are feeling less awfully negative, but there’s a long way to go to get to outright positive. Part of the story ought to be that central banks recognise the declining inflation environment and don’t allow real interest rates to become higher through neglect.

The anatomy of asset bubbles

Since the release of ChatGPT in late 2022, the tech-heavy Nasdaq index has gained nearly 50%, and no stock encapsulates the AI (artificial intelligence) fever better than Nvidia. If you had bought Nvidia stock in 2019 and held on, your stake would currently be up 17-fold. As in any bull market, sustained price increases make investors nervous that stocks are, or will soon become, overvalued. But AI-related companies keep pushing ahead, with the Nasdaq already up 6.6% year-to-date at the time of writing. Naturally, warnings of an AI bubble abound in financial media.

The biggest fear with bubbles – indeed, the reason people call them bubbles in the first place – is that they will suddenly burst, leaving investors with severe losses. Even if the current AI craze is a bubble, it could fizzle out or gradually unwind. That might take some time, and in the meantime, AI investors may well be in for some more stellar returns. This is not to say that all is well. US stocks, particularly the mega-tech sector, are extremely expensive even if they have solid fundamentals. The best strategy for the long-term, as usual, is diversification. We have to keep an eye on AI stocks, and particularly their volatility. But without any glaring warning signs usually observed with bubbles, there is no reason to think things are about to burst.

The UK’s fiscal bind tightens

With the Spring Budget fast approaching, tax cuts are reportedly top of Chancellor Jeremy Hunt’s agenda. According to multiple news outlets, these giveaways might have to be funded by additional public spending cuts – though the latter would likely be delayed beyond an upcoming UK election. Hunt will not want to do anything that might get in the way of Bank of England (BoE) interest rate cuts. Even so, the UK will almost certainly need to tighten fiscal policy after the election. According to the Institute for Fiscal Studies (IFS), Britain is in a fiscal bind and needs tough action. High public debt means spending is severely constrained which, in turn, means that public institutions are stretched thin. These institutions might just about cope in normal times, but when shocks and crises break, there is no more capacity to pick up the slack. This can be clearly seen in the long-term stresses on the National Health Service (NHS), for example.

Tight funding makes budget rebalancing extremely difficult. The Labour Party has said it wants to divert more funds to preventative services if elected, but doing so would either mean spending increases or cuts to non-preventative services – neither of which politicians are willing to do. Whether money is being reallocated across departments or to different regions of the country, rebalancing will inevitably mean short-term costs that no one seems willing to bear. Again, these decisions would be so much easier if the UK could generate strong growth. That needs investment in productive sources – both public and private. But according to Oxford Economics, the UK’s public and private investment over the last three decades ranks 32nd out of 34 major economies. Only the severely constrained economies of Argentina and South Africa see less investment as a percentage of GDP than our 17.4%.

Unfortunately, the dire state of public finances means investment is likely to fall in the short term, rather than rise. Both Labour and the Conservatives have made promises to increase or incentivise investment, but these plans are usually the first to go when confronted with difficult budgetary decisions – as seen in Labour’s abandonment of its green investment targets. These moves stave off short-term pain and, hence, might increase electoral chances. But they make the longer-term problems worse. Addressing Britain’s long-term malaise requires bold changes – but these are extremely hard to implement thanks to a cocktail of fiscal and political realities. Heading into an election, both parties are preaching caution when courage is arguably needed more. With finances already so tight, politicians will have to confront these issues sooner rather than later.

Please check our blog content for advice, planning issues and the latest investment, market and economic updates from leading investment houses.

Alex Clare

19/02/2024

Please see below, Brooks Macdonald’s ‘Daily Investment Bulletin’ which covers the key factors currently affecting global markets. Received this morning – 16/02/2024

What has happened?

Yesterday’s US retail sales delivered a surprising contrast to economic narrative. The report for January indicated a bigger than expected decline in retail sales, with a 0.8% m-o-m decrease (vs consensus 0.1% drop). Factors such as seasonal adjustments and inclement weather in January may have contributed to this weakness. Additionally, revisions to the data from the previous two months prompted some analysts to revise their Q4 GDP projections downward, signalling a potential deceleration in growth as we move into early 2024. Despite these conflicting messages, market sentiment remained positive, with the S&P 500 rising by 0.58% to close at a new record high, and the small mid cap Russell 2000 index climbing 2.45%, reaching its highest point this year, just two days after experiencing its most significant decline since June 2023.

 UK already on the road to recovery?

 In the UK, retail sales experienced a robust recovery in January, posting a 3.4% month-on-month surge, which exceeded consensus expectations. The Office for National Statistics (ONS) noted that this was the most substantial monthly increase since April 2021. Y-o-y, sales saw a modest 0.7% increase, which stands in stark contrast to the forecasted 1.4% decrease and the previous 2.4% decline. This data lends support to the analysis and the Bank of England’s (BoE) projections that the UK economy is on the mend from the recession experienced last year, which was confirmed by contraction in GDP figures released earlier in the week.

What does Brooks Macdonald think?

Although individual economic indicators could sometimes provide insights into the economy’s underlying strength, they can often be clouded by extraneous fluctuations such as seasonality. The Federal Reserve’s primary gauge in assessing the disinflationary trajectory is the Personal Consumption Expenditures (PCE) inflation. The forthcoming release of the US Producer Price Index (PPI) later today is poised to be especially telling. This PPI report is anticipated to shed light on key aspects of PCE inflation, particularly in healthcare, air travel, and portfolio management services.

Please continue to check our blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.

Alex Kitteringham

16^th February 2024

Please see today’s Daily Investment Bulletin from Brooks Macdonald received this morning, 15/02/2024.

What has happened

Yesterday saw a more subdued trading session as the market attempted to recover from the Consumer Price Index (CPI) driven sell-off on Tuesday. This rebound aligns with the prevailing belief that the broader trend of disinflation is still in play, and the orderly nature of the market’s pullback, which lacked any signs of panic selling, indicates that investors are still optimistic, focusing on a potentially less aggressive Federal Reserve pivot and a more robust US economic outlook.

UK GDP

The UK concluded 2023 in a recession, but the emphasis is now on recovery prospects. The latest UK Gross Domestic Product (GDP) figures revealed a 0.3% contraction in the fourth quarter, which was more severe than the 0.1% decline anticipated by analysts and followed a 0.1% decrease in the third quarter. Despite this, the economy is estimated to have grown by 0.1% compared to the previous year. The Governor of the Bank of England, Andrew Bailey, has pointed to more positive signals from forward-looking indicators, such as Purchasing Managers’ Indexes (PMIs), as well as rising consumer confidence and business sentiment.

What does Brooks Macdonald think

In light of the lower-than-expected inflation figures and the contracting economy, there is mounting pressure on the BoE to consider reducing interest rates. During a recent session with UK lawmakers, Governor Bailey maintained a cautious stance, noting that inflation in the services sector and wage growth remain concerningly high. The probability of a 25 basis point rate cut by June, as inferred from market data, is now over 50%, and the market anticipates roughly three rate cuts by the end of the year.

Bloomberg as at 15/02/2024. TR denotes Net Total Return

Please continue to check our Blog content for advice and planning issues and the latest investment, markets and economic updates from leading investment houses.

Charlotte Clarke

15/02/2024

Please see this weeks Tatton Investment Management providing a brief analysis of markets and the key news from global economies over the past week:

Overview: Overview: are US stocks bubbling up?

Last week, the US large-cap equity market shook off the rest of the world, and the S&P 500 marched to another new milestone, trading above 5,000 for the first time. But the stand-out performer of the week was a homegrown success story. ARM Holdings PLC, the world-leading designer of computer chips, listed with 10% of the company value since last autumn on the US NASDAQ exchange in the form of American Depository Receipts (ADRs). Last Thursday, ARM’s share price rose 50%, following its fourth-quarter results. Its projected revenue for the current quarter is over $850 million, way above analyst projections of $778 million. Meanwhile, fellow AI microchip company Nvidia threatens to overtake Amazon as the fourth-most valuable US company. Its market cap is now $1.72 trillion, with Amazon at $1.76 trillion at Thursday’s close. Nvidia has added $600 billion in the past two months alone, about the same as Tesla is worth in total.

So is this a repeat of the dot.com bubble of 2000? The first thing to note is that contrary to back then, ARM’s rally was based on hard revenue and profit, and both are growing extremely quickly. Nvidia is doing the same. Its expected next 12 months’ earnings are almost four times the level of one year ago, and that was already after the release of ChatGPT demonstrated to the world the potential of artificial intelligence (AI) and saw Nvidia become the main provider of the required computer chips. The other thing to note is that, unlike the dot.com bubble, there are few stocks involved. The rally in the ‘Magnificent 7’ has been responsible for almost all of the performance of the US stock market this year. Indeed, the group seems to have become the ‘Magnificent 6’, with Tesla doing rather poorly.

Positivity about the mega-caps and AI stocks in the US (and that small number listed outside the US, like ASML and ARM) seems unshakeable, but of course, one might think that this makes these companies dangerous to invest in, given the high valuations. Can earnings growth that is currently expected to be sustained for quite a while justify those valuations? And, even if they cannot – as Tesla is finding out – can people believe so for long enough as they did in the late 1990s? What should one do if this is another asset bubble? We will delve into this conundrum further over the coming weeks.

Bad news for banks as US commercial real estate loan losses continue

Following the collapse of several regional US banks last year, many investors started to think that after the clear-out, life would get easier for lenders. However, as we noted last week, recent events have delivered a reminder that, for some, trouble still lies ahead. New York Community Bancorp (NYCB) made international headlines after it announced a surprise Q4 2023 loss, cut its dividend, and set aside $500 million to cover potential loan losses. Markets sent NYCB shares down 44% in two days and tried to guess who else might be in a similar position. Japan’s Aozora Bank said it expects a $191 million loss for the current financial year, while Deutsche Bank lifted provisions for loan losses tied to US commercial real estate to €123 million, up from €26 million a year ago. Share prices fell for both banks. The fallout continued when analysts at Morgan Stanley recommended clients sell senior bonds issued by Deutsche Pfandbriefbank AG, triggering losses in most real estate bonds from German lenders.

Global trends and accounting timelines mean it is no surprise banks far and wide are facing issues simultaneously. And naturally, when multiple banks start failing all at once, people get very concerned. Just like last year, when the demise of Silicon Valley Bank and Signature Bank spread shockwaves across the Atlantic, talk of financial contagion and flashbacks to the 2008 global financial crisis has been prominent in the last two weeks. But problems with a common cause are not the same as systemic weakness, much less contagion. Commercial property across the Western developed world is ailing because the trends underlying it – digitalisation of the workplace and a sharp increase in interest rates – are global. This is without mentioning China’s longstanding property woes, albeit with different origins.

Overall though, the specific US commercial real estate issue may exist because the US economy is extremely dynamic. The ‘old’ is failing faster there because of rapid investment in the ‘new’; new homes, new ways of working, new plant and machinery. It is important to note that the available balance sheet reserves outweigh the current losses (and the US is helped by the fact that losses are also borne by capital from overseas). Meanwhile, the investment is creating significant growth. The dangerous period comes not now but when investors in the new want to see that new investment come good.

Will South Africa decide on a change for the better?

South Africa has long been a key Emerging Market (EM) destination for international investors. But it is also a classic EM for all the wrong reasons: widespread corruption, institutional instability, and extreme economic and financial volatility have blighted it for a decade. South Africa’s issues have become progressively worse over recent years. Jacob Zuma’s presidency was one of outright corruption and cronyism, which clearly eroded the state’s capacity to provide public goods and services. Indeed, corruption at all state levels has continued or even worsened under Zuma’s successor, Cyril Ramaphosa, leading to the state’s incapability to fulfil some of its most basic functions. It is not uncommon to hear – anecdotally and in the media – that South Africa is close to being a failed state.

There are opportunities for change, however. South Africa faces another general election this year and, for the first time since the democratic version of South Africa was born in 1994, the African National Congress (ANC) Party is unlikely to win a majority. Current polling puts Ramaphosa’s party at 42% of the national vote, which will likely mean some form of power-sharing deal. However, it is unlikely that the ANC would share any power with its closest competitor, the Democratic Alliance, which is still seen as a predominantly white party. The most worrying outcome, at least for EM investors, would be if the ANC chose instead to share power with one of the more militant populist parties, such as the Economic Freedom Fighters (EFF). The EFF’s involvement in a coalition government looks unlikely, but the risk is there and will be pored over by markets in the run-up to the elections.

But we should remember that the time when things look bleakest is sometimes the time of maximum opportunity. If newer parties can come in – albeit only as junior coalition members – and improve the state’s capacity, that would go far in unlocking South Africa’s growth potential. If they could tackle the underlying exclusion and inequality, it would go even further. In that case, South Africa would start to look extremely attractive to foreign investors.

Please check our blog content for advice, planning issues and the latest investment, market and economic updates from leading investment houses.

Andrew Lloyd DipPFS 12/02/2024

Please see the below article from EPIC Investment Partners discussing the current situation with US Household Debt. Received this afternoon 09/02/2024.

Credit card debt among American households has climbed to record highs, topping USD1.13tn in Q4 2023, according to new data from the Federal Reserve Bank of New York. This USD50bn increase reflects financial struggles, particularly for younger and lower-income consumers, as inflation and interest rate hikes drive up the cost of credit card balances. Nearly half of cardholders now carry debt month-to-month, compared to 39% in 2021 and 47% in July 2023.

At the same time, delinquencies on credit card payments have jumped over 50% in the past year. About 6.4% of credit card accounts are 90 days overdue, versus just 4.0% at the end of 2022. This signals that many consumers are finding it difficult to keep up with minimum payments as debt compounds. Mortgages and auto loans have also grown significantly. Overall household debt now sits at a record USD17.5tn (up USD212bn in Q4 2023).

While higher-income households with investments have largely weathered inflation, lower- and middle-income groups, especially renters, have been hit hard. These consumers tend to carry more credit card and other non-mortgage debt, without assets to help offset rising prices. As interest costs climb, their financial stress has forced delinquency rates upwards. Tighter budgets have left little room for savings among much of mainstream America.

The ballooning credit card debt and delinquency rates cited in this report foreshadow trouble for the broader US economy. As the Federal Reserve maintains its higher-for-longer rates to fight inflation, it risks tipping many households into default or bankruptcy. Combine this with potential housing market declines and additional inflationary pressures, and the report paints an ominous picture of some foundational weaknesses in the US economic landscape. Unless these consumer debt and inflation trends reverse, they could spiral into even greater problems for economic growth and stability going forward. The report suggests the US recovery remains highly uneven and vulnerable to shocks that could disproportionately impact poorer Americans who are already barely staying afloat.

Please check our blog content for advice, planning issues, and the latest investment, market and economic updates from leading investment houses.

Alex Clare

09/02/2024

Please see the below article from Brewin Dolphin providing their insight into what the next 12 months could have in store for China. Received yesterday.

Chinese stocks struggled last year amid the country’s turbulent property sector and deflation concerns. Janet Mui, our Head of Market Analysis and a regular commentator on Chinese markets with BBC News, explores what the next 12 months could have in store.

2024 is the year of the dragon in the Chinese zodiac – a magnificent and mystical creature symbolising supernatural power, strength, and prosperity. As the most auspicious of all zodiac signs in Chinese culture, could the year of the dragon bring a change of fortune for China? In short, 2024 is likely to remain an uphill battle for the Chinese economy and its markets. But before we look at why, it’s important to reflect on the context that brought us to where we are today.

Year of the flop

2023 may have been the year of the rabbit, but for investors in China, there was nothing cute and fluffy about it. Instead of roaring back after the end of its strict zero-Covid-19 strategy, China was plagued by the unfolding of a property crisis that saw two of its top property developers, Evergrande and Country Garden, go bankrupt. And despite the “around 5%” GDP growth target being met after significant government stimulus, it’s important to remember that 2022 provided a low comparison base.

The pessimism around China is reflected in the performance of its stock markets. The Hang Seng China Enterprises Index slumped 14.0% compared to a gain of 21.8% in the MSCI World Index. Putting how grim Chinese stocks are into perspective, at the end of January 2024 the Hang Seng Index to S&P 500 ratio had slumped to its lowest level since 1975.

Firing up the dragon

To avoid being overwhelmingly pessimistic on China, let’s take a step back and think about the potential positive developments in 2024.

The authorities have stepped up stimulus measures and they are increasingly pre-emptive and targeted in nature. At some point, they may well develop a “whatever it takes” attitude.

For example, in January in an unprecedented move, China’s central bank announced an impending cut in the reserve requirement ratio ahead of its official meeting date. There is also a clear signal of further monetary and fiscal easing measures to come in 2024. Consideration of a stock market stabilisation fund worth around two trillion yuan ($278 billion) shows the authorities will not turn a blind eye to the haemorrhage in Chinese stocks.

China has also backtracked on measures aimed to deter online gaming companies (after the evaporation of billions of market capitalisation for the affected businesses) which shows increased consideration for how regulatory changes can impact market sentiment. Of course, the risks of a broader regulatory crackdown (the main driver of the stock market downturn in 2021) remain, but the worst is probably behind us.

The external demand picture for China may look brighter too, with interest rates likely to be cut and an increased probability of a soft landing in major economies in 2024.

Low Chinese asset valuations as a result of the depressed sentiment around China could also pique investors’ interest – could one of Warren Buffet’s many investment maxims, “be greedy only when others are fearful,” apply to how investors view China in 2024?

A market like no other

The problem with investment philosophy widely celebrated in the West is that it’s not always applicable to investing in China. The reason why? China is still a centrally directed economy and the state has tightened its grip on private companies in recent years.

For example, being a shareholder may not equate to participation in the future success of a company. Instead, shareholder capital may be used to serve the policy goals of the Chinese government and underwrite the risk in the process. In practice, Chinese authorities may order banks to increase lending to qualified real estate developers without collateral – is that in the best interest of the shareholders of the bank?

True, there are some sectoral bright spots in China in relation to industrial upgrade, artificial intelligence (AI) and de-carbonisation. Electric vehicle (EV) and solar panel production are booming, and China will be a key player in the world’s transition to renewable energy. Progress has been swift, perhaps best seen in BYD (Build Your Dreams) overtaking Tesla as the world’s biggest EV producer in 2023.

However, investors exposed to a broad equity index in China may find it difficult to benefit from these themes. The top ten constituents of the CSI 300 Index are dominated by state-owned banks and insurance companies, whereas the Hang Seng China Enterprises Index has a heavy weighting to Chinese technology giants, which remain under scrutiny in the name of national security.

Even if you target the companies that may benefit from secular tailwinds, many Chinese companies producing and supplying the world’s renewable energy infrastructure are heavily state-subsidised and are not necessarily profitable. These industries may also be challenged by the increasingly protectionist stance of the West, which may become a focal issue for the China hawks in the upcoming US election. During the US-China trade war under Donald Trump’s presidency, 2017-21, Chinese equities significantly underperformed those in the US.

The stakes are high in the beleaguered property sector

Simply put, economic confidence in China will be steered by the property sector in 2024.

The crisis is still unfolding. There is no sign of a turnaround in home sales, which means reduced cash generation and heightened stress in meeting debt obligations. This creates a downward spiral for the economy; lower property investments could lead to lower economic growth which could lead to lower home sales.

The liquidation order of Evergrande, a once leading Chinese developer, will be complicated and investors will have to wait years to retrieve assets. Crucial to sentiment recovering will be whether unfinished residential units are completed and delivered to homebuyers who have already paid. Chinese authorities and Evergrande have made this a priority but it’s worth watching how this one unfolds.

From the government’s perspective, rather than rescuing individual companies, it is trying to make aggregate financial conditions easier for both developers and homebuyers. While there are macro goals to channel more funding to the property sector, it is hard to anticipate a major recovery in 2024 as banks have remained cautious and selective in their lending. Not helping matters is the expectation that refinancing pressures will remain high for property developers in 2024 and 2025, according to Moody’s.

While stimuli such as lower mortgage rates, reduced downpayment ratios, and relaxed home purchase restrictions are helpful, the boost in actual home sales following the introduction of these measures was short-lived. Lower-tier cities which represent the bulk of national home sales, may not react much given weak macro conditions, confidence, and demographics.

So, what’s the verdict? Well, unless there is a revival in the property market, consumers’ appetite to spend may be limited, especially given around 70% of Chinese household wealth is tied to property. The property crisis also highlights the wider difficulty in rebalancing China’s economy from one driven by fixed investments such as infrastructure, construction, and manufacturing, to an economy deriving growth from services and consumption.

Will the dragon take to the skies in 2024

The transition to the year of the dragon is exciting, and for those who are superstitious, it may bring about new energy and fortune.

However, practically speaking, the profound issues in the property sector will take years to resolve. Neither is the relationship between the state and private companies likely to change anytime soon, whichever zodiac year we are in. The domestic policy environment remains unpredictable and the upcoming US election may bring about more protectionist threats against China’s technology and industrial sectors.

On the positive side, the authorities are likely to manage and contain the financial risks in the economy. There may be more forceful easing rolled out, foreign reserves are ample to counter any shocks, technology progress continues, and external demand could recover in 2024 if developed economies achieve a soft-landing scenario.

With this turbulent backdrop, it’s unsurprising that Chinese equities have become very cheap. After falling in seven of the past 10 years, it’s unlikely to see further big drawdowns in 2024. That being said, for markets, it’s going to take a lot more than the prospect of easing and better economic data to turn their entrenched negativity around. China could really do with the year of the dragon living up to its name.

Please check our blog content for advice, planning issues, and the latest investment, market and economic updates from leading investment houses.

Alex Clare

09/02/2024

Please see today’s daily update from EPIC Investment Partners below:

Swati Dhingra, the most dovish member of the Old Lady’s Monetary Policy Committee (MPC) has warned that the central bank may be “underplaying the downside risks” in the economy, highlighting the declining headline inflation and continued weak consumer spending. In an interview in the FT, Dhingra, who voted for a 25bp reduction in the bank rate last week, the only member to do so, believes there is little danger of a resurgence in inflation, given weak household demand. 

She stated that she was “not fully convinced there’s some kind of really sharp excess demand in the economy coming from the consumption side”. She is “More concerned that we might be underplaying the downside risks”. With pandemic savings drying up and the jobs market loosening, she thinks the “buffers” in the economy will also fade. 

“You might see the real economy start to get negatively hit in a more profound way and I don’t see why we should be risking that”, Dhingra said, adding that given weak consumption it was hard “to imagine how that will get reversed so sharply that you will see a resurgence of inflation driven by demand pressure”. 

Dhingra’s interview comes after Huw Pill, the bank’s Chief Economist said that the drop in interest rates is now not a question of “if, but when” with rates dropping as a “reward” for the economy. The remark, in a webcast Q&A, cemented the view that the outlook for the BoE for monetary policy has shifted. Pill said that although it was premature to talk about rate cuts, underlaying domestic inflationary pressures had started to wane, meaning that “as that process works through, we can begin to reduce the bank rate”. 

Also, in a study published in the Proceedings of the National Academy of Sciences, scientists said that hurricanes are now getting so powerful due to climate change that the upper limit of the Saffir-Simpson Hurricane Wind scale, which, as most of us know is Category 5, needs another level. They propose adding a Category 6 label to any hurricane with sustained winds of “at least” 192 mph.  

The scientists found that of the five storms that would have been in the hypothetical Category 6, they’ve all occurred since the year Tom Hanks’ Captain Phillips was released.

Please check our blog content for advice, planning issues and the latest investment, market and economic updates from leading investment houses.

Charlotte Clarke

08/02/2024