Knight Frank Daily Update Monday 13th July

Good morning,

Need to know

Asian shares rallied overnight alongside both US and UK futures even as the World Health Organization reported a record daily increase in global coronavirus cases, with the total rising by 230,370 in 24 hours.

What appears to be a growing disconnect between market performance and the progression of the virus is being fuelled by unprecedented policy support from global governments and central banks plus the prospects of successful treatment.

Mary Nicola, a portfolio manager at PineBridge Investments, tells Bloomberg the global economy is now entering a multi-year recovery, though there are going to be wobbles along the way.

Scientists are preparing to begin trials of an antibody treatment that could be used to protect older people from the virus. The method includes a three-minute infusion of antibodies that could ward off infection for up to six months.

Meanwhile, one in three South Korean patients seriously ill with coronavirus showed an improvement in their condition after being given Gilead Sciences antiviral remdesivir.

The property market

Two months ago we spoke to Savvas Savouri, the chief economist at asset manager Toscafund about why he thinks pessimism surrounding the economic future of the UK has been overstated.

Today Savvas joins Anna Ward for a new Intelligence Talks podcast on the UK’s virus recovery and what it means for property.

Tom this morning updates our Residential Market Outlook with a closer look at stamp duty, and considers what the latest changes might mean for the government's approach to taxation.

His piece includes the eye-catching statistic that the two central London boroughs of Westminster and Kensington & Chelsea provide as much stamp duty revenue as the counties of Buckinghamshire, Hampshire, Kent and Hertfordshire combined, none of which are known for low house prices.

Scotland is to introduce its own version of the chancellor's stamp duty holiday in a bid to boost the economy north of the border, writes Chris Druce.

Finally, Andrew Shirley's rural update reveals the extent to which farm profits in the UK rely on support payments and has the latest reaction to the chancellor's decision to slash the VAT levied on hospitality, accommodation and attractions from 20% to 5%.

Any questions, please contact me, or the team.