Tom Bailey

Investors dump bond funds and increase exposure to UK equities

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.

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 GDP is set to plunge – but recovery may be quicker than in other countries

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.

The coronavirus recession: what will it look like and which stocks could prosper?

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.