Knight Frank Daily Update Friday 5th June
Transport corridors, compulsory face coverings and the best markets to invest in right now
2 minutes to read
Good morning,
Need to know
As outlined in yesterday's note, we are tracking a range of economic indicators which are now beginning to show small increases from the record lows posted last month, as governments ease lockdowns in many countries.
Today, a monthly index of demand for staff rose to 19.3 from April’s record low of 9.3, although that's still below the 50 dividing line that separates rising and falling demand for staff.
Meanwhile a monthly high street sales tracker showed like-for-like sales declined 18% in May compared to a year earlier, easing from a 30% decline in April.
British consumer confidence in late May fell to its lowest level since the global financial crisis over a decade ago, although interestingly the survey posted a six-point rise in a measure of how willing consumers are to buy expensive items.
The European Central Bank yesterday agreed a larger-than-anticipated increase to its emergency bond-buying program designed to shore up European economies. Officials decided to expand purchases by 600 billion euros to 1.35 trillion euros, and extended them until at least the end of June 2021. As a result, Asian shares are now poised for their biggest weekly rise since 2011.
European countries including Turkey, Greece, Spain and Portugal are keen to adopt “transport corridors” as soon as next month, in a move that would allow British tourists to visit resorts without quarantining for 14 days on their return home.
China will allow more foreign airlines to resume flights to its cities - foreign airlines that are at present unable to send international flights into China will now be able to fly to one city each week.
The property market
In today’s global edition of our Intelligence Talks podcast, Anna Ward speaks to David Bailin, chief investment officer at Citi Private Bank and Knight Frank's Flora Harley. The discussion covers global politics from Brexit, US-China relations and the impact on property, as well as David's thoughts on best property sectors and markets to invest in right now.
During this challenging period when much economic data tends to lag, the Purchasing Managers Index (PMI) can be one of the most useful leading indicators of economic conditions. Nick Holt's analysis of Asia-Pacific property markets finds PMI readings ticked upwards across the region in May as economies reopen.
Michelle Ciesielski provides a view from Australia, where pent-up demand carrying over from the restricted lending phase and a favourable currency play for expats, has seen prices hold up across most cities.
Finally to mark World Environment Day Andrew Shirley spoke to Paul Milton, who has spent 25 years working with some of the world’s leading conservationists including Anders Povlsen, about Covid-19 and its potential impact on the globe’s most endangered ecosystems.
If you have any questions, please contact me, or the team.