Wednesday’s mood – Withstanding storms

Published on 12-08-2020 12:05:57

Last night Britain was buffeted by ‘apocalyptic’ thunderstorms. Today, the tempest is of the economic variety, with news of a 20.4% fall in GDP in the three months to June – the biggest plunge on record.

Yet the FTSE 100 is up, taking comfort from signs of recovery in May and June, and the hope of further loosening of monetary policy.

We’re withstanding these storms and finding ways to carry on. BP is taking shelter in a radical reduction of its office space. Charming ‘little wine holes’ are re-emerging in Florence. Australia’s jobs market is bearing up to COVID-19 by dividing into three. Airbnb is even planning for an IPO, having recovered from COVID-19 restrictions.

There are other storms to withstand too. Having hit new highs, gold has suffered its biggest one-day fall for seven years. Britain is facing up to a future with no Chinese tourists. At least the new star that astronomers have discovered travelling at speeds fast enough to orbit the earth in 1.5 seconds is orbiting somewhere else instead.

For others outside the storm, fair weather beckons. Online businesses ASOS and Just Eat Takeaway are enjoying the home deliveries boom. Edison client Walker Greenbank has emerged from lockdown in a healthy net cash position. India is producing a new generation of vaccine billionaires.

In the US, financial markets have long been weathering the COVID-19 storm.and the S&P 500 Index is now nearing a six-month high. Tesla is splitting its stock to make it affordable again.

Those who need more comfort as they shelter from storms can take solace from NASA declaring that we all live inside a giant deflated croissant, but there may still be doubts over certain key universal issues. Will Kraft Mac & Cheese ever be an acceptable breakfast?

Until tomorrow,

The Stream team

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