Good afternoon, it is December 14th 2020 and here is your economic and market update from BlackBee.
- The State will need to supply 28,000 new homes p.a. for the decade to keep pace with population growth.
- Sunday deadline of Brexit negotiations pushed back following positive talks.
According to a new report from the Economic and Social Research Institute (ERSI), the state will need to build 28,000 new homes a year for the next two decades to keep pace with population growth. This figure is far ahead of the 20,000 that is forecast to be supplied this year. The ERSI have based this on assumptions about future trends including mortality, fertility and net immigration. They have also scenario tested different trends. International migration is a key driver of population growth and in a high immigration scenario, the houses needed to be supplied each year could reach 33,000. In a lower immigration scenario, the supply of housing units needed would be 26,000, still much higher than the current year’s supply. The midlands, surrounding Dublin, will experience the fastest population growth. (Source: ERSI).
Despite warnings that the EU and UK remain far apart on critical issues and that talks could go to the wire, hopes rose on Sunday that a deal could be reached. The UK Prime Minister Boris Johnson, and the European Commission President Ursula von der Leyen, agreed to “go the extra mile” to secure a deal in a “constructive call” on Sunday. Both sides reported progress in the negotiations. The UK’s transition deal ends on January 1st, by this date a deal will need to be in place. British officials have admitted it could drag out to Christmas and not to expect a deal in the next few days however Mr Johnson is still of the opinion that a no-deal outcome was most likely despite the progress in negotiations. The Sunday deadline was pushed back as they explored how to solve the sticking point of a level playing field regarding business competition and fisheries. To address the issue of a level playing field, Brussels pushed the idea that would allow either side to request consultations and introduce tariffs if it was concerned that its companies were at a competitive disadvantage. This was previously rejected by the UK, however, modifications to the idea were discussed on Sunday. (Source: Financial Times).
Best & Worst Performers of Large Cap US Stocks on Friday
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Global Market Update
(as at close of markets 11/12/2020)