This is a stark reminder to us all as the lockdown easing measures continue to come through, most notably in the UK but also globally. The hospitality sector has been in focus with detailed guidance due on how pubs, bars and restaurants can start gradually to re-open from July 4.
Cinemas, museums and art galleries will be able to begin re-opening their doors from next month in England. Prime Minister Boris Johnson also announced that the two-metre social-distancing rule is also being relaxed and we should remain 2m apart where possible but a “one metre plus” rule would be introduced.
This is also a global trend – on Sunday Spain lifted a slew of restrictions in a bid to get its tourism industry back up and running. As well as opening its land border with France, Spain also welcomed EU nationals, those from the passport-free Schengen zone and Britons at seaports and airports – without enforcing quarantine periods. Around 100 flights from European countries landed at Spain’s airports.
The big news from last week was from the Bank of England (BoE), as the supportive measures by global central banks to stimulate economies continue. The BoE unsurprisingly kept interest rates at all-time low levels of 0.1% but decided to increase Quantitative Easing (QE) and will pump an extra £100bn into the UK economy to help fight the “unprecedented” coronavirus-induced downturn. The Monetary Policy Committee voted 8-1 to increase the size of its bond-buying programme.
However, they said there was growing evidence that the hit to the economy would be “less severe” than initially feared. The BoE’s simultaneous decision to slow the pace of asset purchases means that it will no longer hoover up all the additional debt created by the UK government and will require private sector investors to finance the deficit again. The minutes indicated there had been no discussion of lowering interest rates into negative territory, with the issue still under review at the bank.
Alex Brandreth
Chief Investment Officer
The content in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.