Good afternoon, it is October 14th 2020 and here is your economic and market update from BlackBee.
- Health Budget to increase by €4 billion.
- IMF warn of lasting effects of the Covid-19 pandemic.
The government announced that the 2021 Budget has seen an extra €4 billion added to the healthcare budget. Minister for Health Stephen Donnelly TD said today that it is the largest budget increase in the history of the state signalling the intent of the government to fund improvements and an expansion of health services. He also stated that although measures are included in response to Covid-19, the budget is also about building positive change to the health service. Mr Donnelly stated that there is significant extra funding in the budget for those living in residential care. According to a report from the Comptroller and Auditor General, costs associated with accommodating a resident in public sector nursing homes is 62% higher than that of private nursing homes. There has long been a need for extra funding in public nursing homes and the supply deficit has also been an issue in Ireland. There are currently c.31,000 residential care beds in Ireland which will need to increase to 59,000 by 2040 to facilitate a growing population, highlighting the need for funding and for the government to try align costs to that of the private nursing home sector.
Following the release of the World Economic Outlook report from the IMF, which warned that the coronavirus will have lasting effects and Eli Lily & Co pausing their trial just hours after Johnson & Johnson had paused theirs due to an unexplained illness in a patient, the rally in equity markets stalled as stocks moved lower. Hopes of a deal in the US Congress dimmed as Nancy Pelosi rejected a smaller scale offer from Senate Republican leader Mitch McConnell after she had demanded that the Republicans ramp up their proposal. The IMF’s report also warned that further bankruptcies could compound job losses. Global growth was forecast less severe than their June forecast at -4.4% but was still labelled a deep recession. The S&P500 declined -0.63% with the Dow Jones falling -0.55% and the Nasdaq retreating -0.10%. Stocks also decline in Europe with the Stoxx Europe 600 retreating -0.55%. Source: Bloomberg
Best & Worst Performers of Large Cap US Stocks on Tuesday
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Global Market Update
(as at close of markets 13/10/2020)