Daniel Casali provides a round-up of key market activity during the week of 22nd June.
- The UK has tightened its takeover rules in order to stop companies falling victim to foreign bidders
- From March to May, UK factory output fell at a record pace according to CBI’s industrial trends survey. Of the 360 firms that responded to the survey between late May and mid-June, 74% had produced less in the latest three months compared to the quarter ending in March
- Japan has given the UK 6 weeks to strike a post-Brexit deal
- Wirecard, the German payment processor and financial services provide announced that €1.9 billion of cash missing from its balance sheet probably does not exist at all.
- The automobile industry’s trade association has suggested that potentially 1 in 6 British jobs risk redundancy.
- Consultants have predicted that amongst the shifts in the commercial property market, demand for office space in skyscrapers will drop even as people begin to return to work.
- The IMF have projected global GDP growth will decline by -4.9% in 2020 but will rise 5.4% in 2021.
- According to the International Monetary Fund, Britain will have to borrow over £400bn by 2022 in order to cover coronavirus costs. Sir Robert Stheeman, the chief executive of the Debt Management Office has claimed that borrowing costs may rise if the Bank of England unwinds quantitative easing.
- According the ONS, half a million UK furloughed employees have returned to work in the last two weeks.
- The IMF has said that corporate debt levels are at ‘unmanageable’ levels, which could lead to insolvencies and bankruptcies.
- The Fed has instructed banks to reduce shareholder payouts in the next few months to create a buffer for any future shocks.
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.
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. 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 writing.
Smith & Williamson Investment Management LLP
Authorised and regulated by the Financial Conduct Authority.
Registered in England No. OC 369632. FRN: 580531
Smith & Williamson Investment Management LLP is part of the Tilney Smith & Williamson group.
© Tilney Smith & Williamson Limited 2021