Daniel Casali provides a round-up of key market activity during the week of 25th May.
- 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%.
- 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%.
- 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.
- 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.
- 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.
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This article was previously published on Smith & Williamson prior to the launch of Evelyn Partners.