Key Weekly Data Points – week commencing 01/06/2020
05/06/2020 - Daniel Casali provides a round-up of key market activity during the week of 1st June.
Daniel Casali provides a round-up of key market activity during the week of 1st June.
Monday 1st
- Estimates have suggested that out of the UK Bounce Back Loan Scheme, which is currently lending to 608,000 borrowers, 40-50% would not be paid back, or approximately £8-9bn.
- YouGov and the Centre for Economic and Business research have indicated that consumers are highly pessimistic about personal finances, despite household confidence stabilising. According to their index, confidence rose in May by 3 points, to 95.8, however this remains below the level for optimism: 100.
Tuesday 2nd
- Due to the health and economic crisis resulting from COVID-19, public spending in the UK is set to surpass £1 trillion this year.
- The Congressional Budget Office has suggested that the effect of COVID-19 on the US economy could last for a decade. Economic output in the US could fall by 3% between 2020-2030. This would be equivalent of $7.9 trillion.
Wednesday 3rd
- The total of workers furloughed in the UK is now 8.7 million, an increase of 300,000 from the previous week. The £14 billion a month scheme is now supporting 25% of the workforce.
- ADP unemployed figures from the US showed 2.76m job losses in May, which was better than the consensus forecast.
Thursday 4th
- According to a Bloomberg report, home prices in the UK fell by 1.7% in May. Further bad news for the housing industry came from the BOE, who suggested that in April, mortgage approvals fell by 15,800.
- Germany passed a €130 billion stimulus package to help against the effects of COVID-19. This was 30% higher than previously expected.
Friday 5th
- The European Central Bank has approved further stimulus measures to tackle the impact of COVID. The total stimulus is now €1.35 trillion
- £4 billion was invested into retail funds by savers during April, after a £9.7 billion outflow in March, according to the Investment Association. £969m of this was invested in ‘responsible investment funds’.
Source: Bloomberg.com
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DISCLAIMER
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. While considerable care was taken to ensure the information contained within this article was accurate and up to date at the time of publication, no warranty is given as to the accuracy or completeness of the information. No liability is accepted for any errors or omissions in such information, or any action or inaction taken on the basis of this publication.
Please remember investment involves risk. The value of investments and the income from them can fall as well as rise and investors may not receive back the original amount invested. Past performance is not a guide to future performance.
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Disclaimer
This article was previously published prior to the launch of Evelyn Partners.