Insights

Key Weekly Data Points – week commencing 01/06/2020

  • Written By: Daniel Casali
  • Published: Fri, 05 Jun 2020 12:00 GMT

Daniel Casali provides a round-up of key market activity during the week of 1st June.

Reporting 157219337

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

Risk warning
Investment does involve risk. The value of investments and the income from them can go down as well as up. The investor may not receive back, in total, the original amount invested. Past performance is not a guide to future performance. Rates of tax are those prevailing at the time and are subject to change without notice. Clients should always seek appropriate advice from their financial adviser before committing funds for investment. When investments are made in overseas securities, movements in exchange rates may have an effect on the value of that investment. The effect may be favourable or unfavourable.

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. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of publication.

Smith & Williamson Investment Management LLP is part of the Smith & Williamson group.
Smith & Williamson Investment Management LLP is authorised and regulated by the Financial Conduct Authority.

Ref: 82320eb

Return to the COVID-19 Investment page Return to the COVID-19 homepage
Cookie Settings