Tracking the UK’s economic recovery through the lens of six indicators
On September 17, 2020 by Thomas BelaynehThe UK economy suffered one of its worst economic declines on record in the second quarter, as the government announced a countrywide lockdown on 23rd March 2020 that shuttered businesses and schools across the country. A few days before lockdown began, the Bank of England convened an emergency meeting where the committee unanimously voted to
UK employment remains weak as figures show record decline in total hours worked
On August 11, 2020 by Thomas BelaynehTotal number of weekly hours worked in Q2 2020 was 849.3m, down a record 203.3m on the previous year and down 191.3m hours on Q1 2020. The employment rate is 76.4%, 0.3% higher than last year, but 0.2% lower than Q1 2020. The unemployment rate is 3.9%, little changed on previous quarter and prior year
Equity markets creep higher as growing US-China tensions tempers gains
On August 10, 2020 by Thomas BelaynehStocks on both sides of the Atlantic were up with stock bourses in the US, UK, France, Germany, Spain and Italy all in the green. This was despite news that China had sanctioned 11 Americans in retaliation to similar moves by the US on Hong Kong and Chinese officials. Global investors, however, continue to have
FTSE 100 closes lower as airlines are buffeted by quarantine rules on arrivals from Spain
On July 27, 2020 by Thomas BelaynehThe FTSE 100 closed lower 0.31% lower today after the UK government abruptly imposed mandatory quarantine on travellers arriving in the UK from Spain following a spike in Covid-19 cases. While the government is not advising holidaymakers to cut their holidays short, they require that on return travellers provide their ‘journey and contact details’ as
UK Flash PMIs better-than-expected as all sectors return to growth although hiring remains weak
On July 24, 2020 by Thomas BelaynehFlash estimates released this morning by IHS Markit revealed forecast-beating results across both manufacturing and services in the UK. The Manufacturing PMI rose to 53.6 in July from 50.1 in June, beating expectations for 52. The Services PMI rose to 56.6 in July from 47.1 in June, beating expectations for 51.1, and marking the first
UK GDP grew just 1.8% in May as services remained weak
On July 14, 2020 by Thomas BelaynehGrowing just 1.8% on April, below consensus expectations for 5%, meant GDP in the three months to May remained a seismic 19.1% below the same three-month period last year. Services grew a meagre 0.9%, while industrial and construction output increased 6% and 8.2%, respectively. Services As lockdown restrictions were still largely in force throughout May,
Mask wearing and corporate earnings entice investors to add risk as FTSE rises 1.3%
On July 13, 2020 by Thomas BelaynehDonald Trump and Boris Johnson donned face masks in public for the first time since the pandemic began over the weekend, as Downing Street is expected to make an announcement over the next few days regarding whether it should be mandatory to wear masks in shops. If the UK government were to enact such a
Homebuilder heaven: Persimmon rises 6.4% on robust results
On July 9, 2020 by Thomas BelaynehUK homebuilders were on a high today following Rishi Sunak’s announcement that he would raise the threshold on paying stamp study from £125,000 to £500,000, as well as a strong trading update from Persimmon. Whilst the FTSE 100 declined by 1.73% today, Persimmon advanced 6.41% higher to £25.89 a share, as the company announced construction
FTSE declines for second day in a row as virus fears dampen Sunak’s splurge
On July 8, 2020 by Thomas BelaynehUK blue chips declined for the second day in a row, as daily coronavirus case numbers continue to set new records in the US, weighing on investor sentiment. This was despite UK chancellor, Rishi Sunak, announcing a raft of new fiscal measures to support the economy, which included a 15% VAT cut for the tourism