In a time of crisis two things often happen. Pre-existing weaknesses and vulnerabilities, previously not apparent, come to the fore. As Warren Buffett is often quoted as saying: “It's only when the tide goes out that you learn who's been swimming naked.” Second, pre-existing trends often find themselves being accelerated.
UK-domiciled funds saw their largest ever withdrawals on record in March, with net outflows totalling £8.7 billion, according to data provider Morningstar. March saw markets around the world plunge as the world started to fear the global spread and economic consequences of coronavirus.
The government has announced £125 billion worth of taxpayer-backed loans aimed to provide support and funding for UK start-up companies focused on technology and life sciences.
Despite the outbreak of coronavirus, a nationwide lockdown and the effective halt of the UK housing market, UK house prices have risen, according to the latest Nationwide house price index.
The US oil price has fallen to its lowest level since 1999. West Texas Intermediate, the benchmark used for the US oil price, fell to less than $15 a barrel, the lowest it has been since 1999.
Just a handful of companies are responsible for the FTSE 100’s dividend yield, putting income investors at further risk
Dividend concentration among UK FTSE 100 companies is set to worsen, following a slew of dividend cuts.
In total 32 companies in the FTSE 100 have announced either a cut, suspension, or deferment of their dividend payment. The cuts have come from companies in various industries, but most notable of all has been banks given the sector has historically been a big income payer.
The UK’s economic output could fall by 35% in the second quarter of the year if the current lockdown restrictions remain in place, according to analysis from the Office of Budget Responsibility (OBR).
The figure is one of the OBR’s assumptions as part of its analysis focused on the impact of coronavirus on public borrowing and debt. Therefore, the figure should be seen as a “reference scenario” rather than a forecast.
Technology stocks were among the most traded stocks in the first quarter of the year, according to new data released by Saxo Bank, which runs an online trading platform.
The state pension triple lock should be scrapped to help pay for the government’s response to the coronavirus crisis, according to the Social Market Foundation (SMF). This, the think tank argues, would ensure any attempt to reduce spending post-crisis is equally shared among generations.
The economic outlook for the global economy right now can only be described as grim. Across the world, countries have enforced lockdowns in a bid to slow the spread of coronavirus. With consumers staying at home, demand for goods and services has fallen, while many businesses have had to temporarily halt operations. The resulting economic contraction is expected to be the worst since at least the Great Depression.