Blog

12th October 2020

Monday Espresso

Europe saw surging new Covid cases last week with the UK, Germany, France and Spain reporting acceleration in infections. On Thursday October 9, Boris Johnson ordered pubs and restaurants in northern England to shut. The Spanish government approved a partial lockdown in Madrid on Friday October 9.

UK Chancellor of Exchequer Rishi Sunak announced on Friday a new local furlough scheme to aid the businesses that shut down because of the lockdown restrictions. The plan includes paying two-thirds of the wages to the employees affected as well as increasing the cash grants to the businesses.

Eurozone inflation rate for September was published, standing at -0.3% YoY, sliding further down in the negative territory compared to -0.2% YoY in August. The inflation of Germany, France, Italy and Spain, the four largest economies in Eurozone all came in below the market expectations in September.

China Caixin Service PMI was published on Friday October 9, standing at 54.8, beating the market estimates and showing a continuous expansion of the service sector.

UK unemployment rate will be released on Tuesday October 13 and is expected at 4.1%.

China CPI for September will be announced on Thursday October 15, with an expectation of 1.9% YoY.

-0.19*

-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 30/09/20

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

    Subscribe

    Subscribe to our blog and get our best content in your inbox.



    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.

    © 2021 Copia Capital

    Advisers, staff of professional firms and other eligible counterparties

    I work for an advisory / professional firm or other eligible counterparty.

    I will take responsibility for any jurisdictional restrictions that apply to the services described by this website in accordance with applicable law and regulation.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.

    Customers and prospective customers

    I confirm that I am resident in the UK or other EU Country and I am not a US citizen.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.


    The content of this website may only be viewed by persons that meet either of the above conditions.  If neither option is applicable please click here which will close this webpage.