Finance Monthly September 2019 Edition

8 www.finance-monthly.com NEWS - MONTHLY ROUND-UP THE MONTHLY ROUND-UP THIRD OF BRITS PUT SPENDING ON HOLD DUE TO BREXIT KPMG UK research finds that 30% of the UK pub- lic have changed their spending as a result of Brexit uncertainties. A fifth (22%) have avoided mak- ing big-ticket purchases with almost one in ten (9%) missing out on overseas holidays and 6% avoiding investing in the economy via stocks & shares. Mean- while, 8% of people have put more money into sav- ings ‘just in case’. Paula Smith, Head of Banking, KPMG UK says: “It is clear people are un- certain about the future, spending and investing less while saving more. However, whilst people work to protect their financ- es from Brexit uncertain- ties, interest rates remain stubbornly low so savings aren’t really working for people. The business world has been cautious about investing for growth since the referendum and that’s clearly playing through into the real economy and peo- ple’s financial confidence.” Regionally, Brexit wariness seems to be most preva- lent in London, where al- most half (48%) have post- doing the same. 12% of men have delayed buy- ing a new home or making renovations, almost double the number of women who have taken the same pre- cautions (7%). Whilst 3% of men have admitted to changing wedding plans amid Brexit uncertainty, women aren’t letting Brexit interfere with their upcom- ing nuptials, as none said they had put a wedding on hold. Brexit fears are affecting younger people’s spend- ing the most, as almost half poned a big purchase or added to their savings. Un- like the rest of the country, foreign holidays are not the main sacrifice, investing in stocks & shares is, at 17%. One in 20 (6%) Londoners even delayed a wedding due to Brexit, that’s three times the national average. KPMG has also found that men are much more cau- tious about their money in light of Brexit than women, with over a third (35%) of men changing their money management and only one in four (25%) women (46%) of 18 to 34 year-olds have delayed big purchas- es or put more money into savings. Those aged 35 and over have focussed more on saving ahead of Brexit while those over 55 are the least fazed, with only one in five (19%) hav- ing changed their spend- ing habits at all. Parents with young children are also amongst the most concerned, with foreign holidays (15%), new cars (14%) and home renova- tions (10%) being most commonly sacrificed. BITCOIN TO HIT $15,000 AS CONSENSUS GROWS ON SAFE-HAVEN STATUS The devaluation of China’s currency that is rattling global financial markets has revealed that Bitcoin is now becoming a safe haven asset. The analysis from the CEO of the deVere Group comes as investors piled into the Bitcoin and other cryptocurrencies in Au- gust amid growing trade tensions between the US and China. The Chinese renminbi fell to under 7 to the US dollar – the lowest in more than a decade – igniting drops in stocks and emerging market currencies and driving a rally in govern- ment bonds. Nigel Green, Chief Execu- tive and Founder of de- Vere Group, notes: “The world’s largest cryptocur- rency, Bitcoin, jumped 10% as global stocks were rocked by the de- valuation of China’s yuan as the trade war with the US intensifies. This is not a coincidence. It reveals that consensus is growing that Bitcoin is becoming a flight-to-safety asset dur- ing times of market uncer- tainty.” “Bitcoin is currently realis- ing its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but Bitcoin – which shares its key character- istics of being a store of value and scarcity – could potentially dethrone gold in the future as the world becomes increasingly dig- italised.” He continues: “With the Trump administration now officially labelling China a currency manipulator, escalating the tensions between the world’s two largest currencies econo- mies, investors are set to continue to pile in to decentralised, non-sover- eign, secure currencies, such as Bitcoin to protect them from the turmoil tak- ing place in traditional markets.” “The legitimate risks posed by the continuing trade dispute, China’s currency devaluation and other geopolitical issues, such as Brexit and its far-reaching associated challenges, will lead an in- creasing number of institu- tional and retail investors to diversify their portfolios and hedge against those risks by investing in crypto assets.” “This will drive the price of Bitcoin and other crypto- currencies higher. Under the current circumstances, I believe the Bitcoin price could hit $15,000 within weeks.” The deVere CEO con- cludes: “Cryptocurrencies are now almost universal- ly regarded as the future of money – but what has become clear this week is that they are increasingly regarded a safe haven in the present.”