Knight Frank Daily Update Friday 12th June
UK GDP, global house prices, Asia's recovery and Unilever commits to London
2 minutes to read
Good morning,
Need to know
The ONS this morning said it estimated UK GDP declined 10.4% in the three months to April, the largest drop on record, as restrictions on movement dramatically reduced economic activity.
The release follows data spanning consumer spending, retail sales and business trading that suggests April was the trough of the economic crisis, with moderate improvements in May.
Unilever yesterday said it would seek to end its dual Anglo-Dutch legal structure in favour of becoming a London-based company, in a move hailed by the Business Secretary as "a clear vote of confidence in the UK."
In the US, the Department of Labor said 1.5 million Americans filed for new state unemployment claims last week, the lowest number since the crisis began.
Despite the improving data, Fed officials yesterday estimated that by 2022, the US would still be facing 5.5% unemployment, far higher than pre-coronavirus levels. It expects to keep interest rates close to zero through to the end of 2022.
The employment news prompted stocks to suffer their worst drop in nearly three months, with the S&P 500 declining 5.9% — days after it had recouped its losses for the year. The sell-off eased overnight in Asia, with US futures - a proxy for bets on the future trajectory of the market - rising 1%.
The mandatory use of facemasks slows the growth in new cases of Covid-19 by 40 per cent, according to a German study.
The property market
This morning we publish our Global House Price Index, which tracks the movement in mainstream residential prices across more than 50 countries and territories worldwide. Kate Everett-Allen sifts through the data, and outlines which are the best performers, and why it is unlikely that sellers will lower asking prices significantly.
Flora Harley tells us what the latest global economic data reveals about the nature of the recovery, and shows how prime property has fared alongside a range of other asset classes this year.
Justin Eng reveals which Asian markets are likely to recover faster as the lockdowns start to ease.
Anna Ward brings us the latest Intelligence Talks podcast, which today focusses on Africa and the Middle East, with associate partner Taimur Khan and researcher Tilda Mwai. The team discuss inbound/outbound investment, the impact of the postponement of Expo 2020 (due to be held in Dubai) and the long term trends they think will be important post Covid. Listen on Spotify, Apple and Acast.
Finally, you can find a detailed overview of key property market, financial and economic metrics, compiled by William Matthews, here.
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