QROPS update 7th November 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

• Royal Bank of Scotland, Britain’s biggest government controlled bank posted bigger then estimated declines in Q3 profit as Europe’s sovereign debt crisis erodes revenue from its securities unit.
• Bank of England may pause bond buying program after reactivating it last month as officials continue to monitor the Eurozone debt crisis before making their next move
• Sterling reached a session high of €1.1661 against the euro from the early morning low of €1.1545.
• Against the dollar the pound traded between the high of $1.6044 and the low of $1.5946.
• This morning in the UK, surprisingly good house prices data was published showing a rise in October of 1.2% from a fall of -0.5% in September. The pound remains slightly up on most currencies from Friday’s close.

ELSEWHERE

• The euro fell across the board on Friday after the G20 leaders failed to agree to a funding plan to support European government’s recent efforts to manage the regions debt crisis. Markets have been dominated recently by the G20 and news developing from Europe and this has resulted in a lack of risk appetite within investors.
• German Chancellor Angela Merkel commented on Friday that leaders failed to agree on IMF resources to help the regions efforts to control the debt crisis. They have agreed a plan to put in place to bolster the economic growth.
• In a G20 closing press conference French President Nicolas Sarkozy said “we will fight to defend Europe and the euro”. He said the G20 had agreed to boost the resources of the IMP and would agree on the specific steps by February. France failed to persuade the rest of the G20 to commit hard numbers to providing a bigger financial safety net for the Eurozone.
• As Greece’s status in the Eurozone looked questionable last week, Ireland and Portugal say they will do whatever it takes to remain part of the single currency
• The Canadian dollar declines after a report showed the unemployment rate in Canada rose in October to 7.3% from 7.1% as the nation eliminated positions for those searching for jobs.
• The Swiss franc weakened after the nation’s central bank reported foreign currency holdings fell to 242.7 billion francs in October from 282.2 billion francs at the end of September.
• The US dollar rose against 14 of its 16 most traded currency partners after the US unemployment rate fell to 9.0% which is a 6 month low from the previous months release of 9.1% whilst Nonfarm payrolls expanded less then forecasts coming in at 80k against expectations of 95k.
• Last night Greek Prime Minister George Papandreou agrees to step down to allow the creation of a national unity government intended to secure international funding and avert a collapse of the country’s economy.
• Asian shares struggle earl Monday as investors are nervous despite the agreement of a formation of a new Greek unity government.
• The Italian prime minister is coming under increasing pressure to step aside after contagion pushed Italy’s borrowing costs to a record high. 

DATA TO LOOK OUT FOR (all times GMT)

• Eurozone finance ministers face a tough assignment at their meeting today. Political developments in Greece and Italy overshadowed the G20 meeting, constraining any real progress on the October 26 EZ rescue plan.
• Investors will be looking at Italian bond auctions today to see how much Italian debt is rising by. 6% is seen as the key figure to show whether or not debt is considered too high, currently Italian bonds are trading at 6.6% and rising and because of political instability, Italy is under pressure to restore its credibility on financial markets.
• Eurozone Retails sales are released at 10am, expectations we are to see a fall of -0.5% which although still showing fall would be an improvement on last month’s 01.0%
• Germany releases industrial production data at 11am. 

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.

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