Weekly Market Insight

Latest Economic & Market Update 27th November 2020

27th November 2020

Good afternoon, it is November 27th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Covid-19 accelerating trend of retreating retail in Dublin.
  • Minutes of ECB’s last rate-setting meeting show fresh signs that further monetary stimulus will be injected.  

Business representatives told Dublin City Council’s Reset Summit that retail is unlikely to regain its position in Dublin City centre as the city’s future is likely to be based on hospitality and “experiences”. Covid-19 will be a catalyst for the redevelopment. The summit heard that Covid-19 has accelerated an existing trend of retreating retail due to the presence of online shopping. They also noticed spending patterns were changing with people purchasing experiences. Danny McCoy, Ibec Chief Executive stated that it was critical to get the office worker population back to the city as Dublin is fundamentally going to be a service-driven economy and the experience economy is where the value-added is going to be. Chief Executive of hotel group Dalata, Pat McCann, said that although the lack of office workers was a problem Dublin is equally missing millions of tourists that keep the vibrancy and that there are real advantages for the citizens of Dublin to have a strong vibrant hospitality sector. (Source: Irish Times).

Minutes of the ECB’s rate-setting meeting last month were published on Thursday. The minutes concluded that the outlook for the eurozone economy will be “bumpier than projected” due to coronavirus restrictions that are likely to continue into next year. The ECB warned that the possibility of a double-dip recession cannot be excluded in the euro area. Philip Lane, Chief Economist at the ECB said that he was worried of “a mutually reinforcing adverse loop” if both banks and companies view falling loan demand as a negative indicator for the economy with banks also tightening their lending criteria. Fresh signs that the ECB would gear up to inject further monetary stimulus into the eurozone due to the tightening financial conditions for banks and small businesses were evident in the minutes. Last month the ECB stated that it would “recalibrate” all its monetary instruments and would announce the outcome at its December policy meeting. (Source: Financial Times).

Best & Worst Performers of Large Cap US Stocks on Wednesday
Click image to enlarge
Note that US markets were closed Thursday for Thanksgiving.

Global Market Update
(as at close of markets 26/11/2020)
Note that US markets were closed Thursday for Thanksgiving.