QROPS update 31st October 2011 Pension drawdown & QROPS and QNUPS

At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates.

Cash and income timing from a UK Pension income drawdown, flexible pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension drawdown, QROPS and investment income taken.

Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, income drawdown now including flexible pensions, a QROPS and QNUPS (Qualifying non UK Pension schemes).

IN THE UK

• GBP/USD performed well last week, finally breaking through the $1.60 mark, reaching a high of $1.6152 late on Friday afternoon – the day’s low only $1.6071.
• The pound also rose slightly against the euro on Friday closing at a high of €1.1399 in what turned out to be a range bound session for the pair after the dramatic 1.4% free fall on the Thursday in response to the faith inspired the EU summit.
• British exposure to Greek debt has been quantified at €14.6bn. Whilst putting us in third place this is less than a half of Germany’s and less than a third of that of France.
• The real danger of this exposure is that if aggravated it would put the pressure on our Irish debt to which we have far more sensitivity. 

ELSEWHERE

• GDP for Greece is now expected to contract by 5.5% this year and projections have been revised to not expect any growth before 2013
• EURUSD backs up cable’s recent performance for a good week reaching a high of $1.4241 – a level not seen since the start of September.
• Germany has “found” €55bn after unearthing an accounting error at the nationalised Hypo Real Estate Bank. This will go some way towards the €161bn of debt contributed by the bank to the economy.
• Italy has broken records at a bond auction, borrowing at 6.06%, the highest in the Euro’s lifetime. Italy also has the highest amount of debt of any Eurozone nation.
• Klaus Regling of the EFSF, is looking to the Chinese for €70bn of investment to help it reach the €1tn needed to complete the rescue package. 
• Breaking news overnight is that Japan’s finance ministers intervened at 10.30am Tokyo time today in attempt to weaken JPY as USDJPY fell to 75.6, the intervention has been successful and USDJPY has risen over 5% to a high of 79.51 and GBPJPY broke through 127.00 before falling back to the current 125 level.
• Some sceptics have been saying over the weekend the relief of the EU summit may be turning to disappointment as EU leaders struggle to raise the extra cash promised and the plans do little to address the fundamental problems of insolvency, EURUSD is back below 1.40 and posted a fall of 1.5% from the high of 1.4241 hit on Thursday.

DATA TO LOOK OUT FOR (all times UK BST)

• In the UK this morning, Consumer Credit, Net Lending and Mortgage Approvals figures are released and will help to give a clearer picture of personal finances in the UK
• Eurozone CPI is released at 10.00am and is expected to remain at 3%
• Also released at 10.00am in the Eurozone are the Unemployment Rate figure for Sept, analysts are expecting the rate to match last month’s 10%
• In Canada at 12.30 GDP for August is expected to fall to 0.2% from 0.3% and could leave CAD under pressure.
• Minutes from the Bank of Japan’s last policy meeting are released overnight and with this morning intervention could make interesting reading.

Gerard Associates Ltd advises UK residents, expats and people considering living abroad on the technical and currency options available for Pensions, pension income drawdown, flexible pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS and QNUPS and investments in a clear format allowing all customers to make an informed choice.

This with the reassurance and security of UK FSA authorised and regulated advice - essential for your security.