Your mid-week update
About that vaccine
3 minutes to read
Tracking the recovery
British businesses are operating at half of their pre-Covid 19 capacity, despite lockdown measures easing, according to a survey by the British Chambers of Commerce. Parts of the wider European economy which were hardest-hit by the pandemic - such as dining out - are showing signs of recovery but other areas of activity that began to bounce back earlier have levelled off, namely travel and tourism. The euro hit an 18-month high after European leaders struck an economic rescue deal.
Vaccine developments
Following news the University of Oxford’s possible Covid-19 vaccine produced an immune response in early-stage clinical trials, the lead developer yesterday said its possible the treatment could be rolled out by the end of the year. England’s Chief Medical Officer Chris Whitty and his deputy Jonathan Van-Tam appear to have differing views on whether we're likely to see the vaccine this side of Christmas, should it be shown to work in late-stage trials.
Property transactions rise
The property market recovery continued in June with transactions up 32% on May's data, writes Chris Druce. Though the figure remains 36% lower than June last year, both supply and demand have risen strongly since the April low-point and leading indicators of activity are as strong as they’ve been in years, which suggests exchanges will continue to climb.
In a new diary of an agent, Chris checks in on the mortgage market as lenders treat high loan-to-value lending with caution, particularly to those without guaranteed income such as freelancers.
Global super-prime sales
Flora Harley's analysis of global super and ultra-prime sales reveals transactions were down in 11 of the 12 markets studied in the first half of 2020. Sydney was the standout market with 15 super-prime sales in the first half of 2020 compared to 13 in the first half of 2019. Despite the falling number of purchases, those transacting were generally of a higher value.
Tapping the markets in Asia-Pacific
Justin Eng asks whether companies are borrowing too heavily following the bankruptcy of several large Asia-Pacific corporations. Since the start of the year, companies across the globe have sold a record US$2.1 trillion worth of corporate bonds across varying grades as at July 15th 2020. This far exceeds the amount of bonds issued within the same seven-month time frame over the preceding four years which averaged around US$1.25 trillion annually.
Meanwhile, Japan’s industrial output likely rebounded in June from the near double-digit decline in the previous month, and Malaysia's CPI declined 1.9% in June from a year earlier.
In other news...
Donald Trump yesterday said the spread of the virus in the US will probably ‘get worse before it gets better’.
Some 61% of US bank executives surveyed by Accenture Plc said they don’t expect all of their employees to be called back to the office, and more than 40% said they plan to reduce their real estate footprint as a result of the pandemic.
The Government yesterday published its response to the consultation on the introduction of a 2% SDLT surcharge on home purchases made by non-resident purchasers. The surcharge will be drafted into legislation via the Finance Bill 2020-21 and will apply on or after 1 April 2021.
Natwest Group is promising to invest £3 billion in social housing over the next three years to support the development of 20,000 homes.
Any questions, please contact me, or the team.