Good afternoon, it is November 2nd 2020 and here is your economic and market update from BlackBee.
- Planning permission for apartments exceed those for houses for the first time in Ireland’s history.
- Equities suffer their worst week since March.
According to the Office of Planning Regulator (OPR), for the first time in the country’s history, planning permissions for apartments have exceeded those for houses. As reported by RTÉ, out of 40,252 residential units that were granted planning permission in 2019, 51% of those were apartments. In Cork only 24% of all residential units that received planning permission last year were apartments compared to Dublin, where 86% of granted planning permissions were apartments. The report did express concern that most house building was in commuter areas of Dublin such as Kildare, Louth, Meath and Wicklow and stated that it “poses a challenge to the Government’s planning objectives in tackling the sprawl of major urban areas”. OPR states that apartments are “key to sustainable urban development”. This view from OPR also supports BlackBee’s strategy to deliver planning permission for apartments in Dublin as apartments are also vital to address the supply-demand imbalance. (Source: RTÉ).
Concerns over the US elections and fresh lockdowns resulted in global equities suffering their worst week since March. The MSCI World Index erased 5.7% of its value last week. The VIX, which is considered a fear gauge, rose to 38.02 on Friday, up from 27.55 the week before. Despite major tech companies such as Alphabet, Amazon, Apple and Facebook all beating analyst expectations of earnings, tech stocks slid last week with the Nasdaq falling 5.5% for the week. This may be an indication that with further volatility expected due to the US election, new lockdown measures in place and the idea that tech shares may have maxed out, investors are taking money off the table to reduce risk. Oil continues to be hit due to concerns over demand as a result of new lockdown measures with the WTI falling 10.1% last week and crude oil falling 9.8%. (Source: Bloomberg/Financial Times).
Best & Worst Performers of Large Cap US Stocks on Friday
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Global Market Update
(as at close of markets 30/10/2020)