We’re pausing briefly today to reflect on the whirlwind surrounding us. With a second wave of the virus emerging across the US, a leak shows that the country is doing even worse than Brazil, Russia or Iran in fighting the outbreak. US stocks responded to that news and yesterday’s announcement from the Fed with their worst day since March, yet other European markets held firm. So did the FTSE All-Share, even taking into account news that UK GDP dropped by a record 20.4% in April, although this is more confirmation that the UK really is the sick man of Europe.
Perhaps the blood-letting had already happened on this side of the Atlantic, and today we just want to take stock and make it to the weekend. Fair enough, we’ve seen our fair share of bad news. Take airlines. British Airways has to cut as many as 12,000 jobs, Lufthansa 22,000, and there are likely to be more jobs cuts for Airbus’s UK employees than those in France and Germany.
Amid the turmoil, however, there are some companies that can hold their heads up high. Games Workshop will pay back all furlough grants and claim no more on the back of strong results, while Edison client IQE is expecting record first half revenues and an increase of over 27% y-o-y.
You can understand how people are pausing for thought when convention keeps being turned on its head. A bankrupt Hertz is now trying to raise $1bn to capitalise on investor frenzy, couples are taking honeymoons before weddings, while plastic rain is the new acid rain.
Do you know who else is suspended in animation? Lab mice that might help us get to Mars.
Finally, a reminder to sign up to Edison’s and Trust Associates’ webinar next Monday focusing on the issues facing investment trusts – 240 attendees have now signed up and we hope to see you there.
Have a great weekend,
The Stream Team