St James Place : Trading places

In 1793 Emperor Qianlong of China wrote a letter to George III to respond to the British king's request to send a trade representative to China. After the usual pleasantries, the letter famously stated: 'As your Ambassador can see for himself, we possess all things. I set no value on objects strange or ingenious, and have no use for your country's manufactures.'

How times have changed. On Tuesday last week Xi Jinping, the Chinese president, delivered the keynote speech at the annual World Economic Forum in Davos - the first by a Chinese leader. In it, he made an assertive case for the benefits of global trade and exchange. 'The problems troubling the world are not caused by globalisation,' he told the politicians and CEOs gathered in the Swiss Alps. As he spoke, his State Council announced it would further open China's mining, infrastructure, services and technology sectors to foreign investment.

This week's bulletin also includes:

• Donald Trump preached a protectionist message in his inauguration speech in Washington DC on Friday.
• In her first Brexit planning speech, Theresa May confirmed that the UK would leave the single market.
• Earnings results showed that US banks performed well in the fourth quarter, while UK retailers struggled.
• A surge in UK inflation was another blow to cash savers struggling to maintain the real value of their money.

View this week's Market Bulletin, which contains thoughts and opinions of St. James's Place and our range of investment managers on the key issues affecting investors.

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