Follow the consumption trail
Boosting consumption has been the primary focus of UK Chancellor Rishi Sunak after a devastating collapse in output in the second quarter. Real GDP contracted -20.4% in Q2, the sharpest fall amongst the G7 nations. This was more than double the contraction in the US (-9.3%) and Japan (-7.8%). GDP in France, Italy and Germany fell by -13.8%, -12.4% and -12% respectively. GDP statistics are of course backward looking and fail to reflect real time economic activity, which has been extremely volatile and almost impossible to forecast during this crisis.
Stimulus or no stimulus?
How will countries handle bankruptcies?
This report is for general information purposes only and is not intended to predict or guarantee the future performance of any investment, investment manager, market sector, or the markets generally. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. We will not update this report or advise you if there is any change in this report. The information is based on sources believed to be reliable. We do not represent or warrant that the report is accurate or complete.
This presentation may contain targeted returns and forward-looking statements. “Forward-looking statements,” can be identified by the use of forward-looking terminology such as “may,” “should,” “expect,” “anticipate,” “outlook,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof, or variations thereon, or other comparable terminology. Investors are cautioned not to place undue reliance on such returns and statements, as actual returns and results could differ materially due to various risks and uncertainties. This material does not constitute investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.