Today all eyes are on Glasgow again for the UN COP 26 climate summit, with commentators calling it the ‘last chance saloon’ to reverse climate change by accelerating the phase out of coal, curtailing deforestation and encouraging investment and development into electric vehicles and renewables. All this in securing global net zero by 2050 and keeping global warming within 1.5 degrees within reach.

We truly hope that leaders and politicians act like Statesmen and stewards of the Earth, by coming together and following up with their soundbites with swift and strong actions. For further colour on our thoughts to COP 26 and to our approach to Socially Responsible Investing in general, please listen to our most recent podcast, In the Markets with Fred & Rory.

As a precursor to this, the UK main markets were relatively buoyant in the month of October, with the FTSE 100 up 2.1%. In a role reversal to previous months the smaller cap indices went in the opposite direction with the FTSE Small Cap down 0.3% and the FTSE AIM All Share off 1.7%. The real action happening in the bond markets, with the UK 10-year yield bouncing around between 120 bps and 98 bps over the course of the month, as the market readies itself for imminent rate rises from the Bank, on the back of inflation, be it transitory or structural.

Inflation was the driver for company beats and misses over the autumn earnings season. Unilever reported an increase in their prices of 4.1% in Q3, maintaining their margins by passing on the rises in their input costs. The question for these businesses is how loyal is the customer base to keep on buying their products at these inflated prices…