Blog

25th January 2021

Monday Espresso

China’s GDP was published on Monday January 18, showing a growth of 6.5% YoY in the fourth quarter of 2020 and the GDP for the entire year of 2020 saw a 2.3% increase to stand at a record high of 101.6 trillion yuan ($15.4 trillion).

Joe Biden was inaugurated as US President on Wednesday January 20 and signed a series of executive actions last week, some of which reversed Trump’s policies, such as orders to require mask-wearing, demand the US to rejoin the Paris Climate Accord and the World Health Organization and halt the construction of the US-Mexico border wall.

Italian government approved an additional €32 billion stimulus package on Wednesday to help national health services and businesses closed due to the Covid pandemic. The stimulus spending will add to Italy’s 2021 budget deficit.

On Thursday January 21, ECB decided to maintain the benchmark interest rate at 0%, with the marginal lending facility and the deposit facility rates at 0.25% and -0.50% respectively and said will keep the rates accommodative until the inflation outlook of Eurozone improves close to, but below 2%.

  UK unemployment rate will be released on Tuesday January 26 and is expected at 5.1%.

Germany IFO Business Climate index will be published on the Monday January 25, expected at 91.3.

+0.65*

-1.0     A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.

0.0       A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.

+1.0   A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.

*as at latest realignment 18/01/21

Notice:

The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.

Risk Barometer

0

as at latest realignment

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    Copia Capital Management

    Fleet House, 8-12 New Bridge Street, EC4V 6AL

    Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

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