Key Weekly Data Points – week commencing 25/05/2020

Daniel Casali provides a round-up of key market activity during the week of 25th May.

Monday 25th

• Singapore has prepared to unveil a fourth stimulus package after saying the economy may shrink by as much as 7% this year, steeper than a previous estimate projecting a contraction of no more than 4%.

Tuesday 26th

• A Treasury survey of independent economists has suggested that Britain’s public finances may have to endure lasting damage from the coronavirus and may be running an annual deficit of 5% of national income by 2024.
• JPM Morgan CEO, Jamie Dimon has said he sees “pretty good odds” of a swift economic rebound, beginning in Q3 of 2020. This was echoed by St. Louis Fed President James Bullard, who suggested US unemployment will be below 10% come December. A survey by Bloomberg indicates that economists expect a 10.3% jobless rate in Q4 2020.
• Global energy investment was set to rise 2% in 2020, pre coronavirus, but is now expected to drop by 20%, the biggest in its history. Oil funding is set to drop 30%, coal by 15% and renewables 10%.

Wednesday 27th

• The President of France, Emmanuel Macron announced an €8bn plan to help rescue the French car industry.
• The Bank of England’s chief economist, Andy Haldane suggested that a V-shaped economic recovery is likely based off promising consumer spending data.

Thursday 28th

• Jobless claims in the US grew by another 2.1m, taking the total to over 40m since the beginning of lockdown.
• China has officially approved its national security laws plan, regarding Hong Kong. This is despite the US suggesting that it would not view Hong Kong as autonomous from Beijing.

Friday 29th

• Last April, the British car industry produced 70,971 cars. This year it produced 197, due to factory shutdowns.
• Donald Trump has ordered a legal review which will target social media groups. The US president is looking to alter laws that give social media platforms immunity from lawsuits.

Source: Bloomberg.com

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