Good afternoon, it is October 8th 2020 and here is your economic and market update from BlackBee.
- Social housing shortage
- US Stocks Advance on back of Trump tweet
The social housing crisis remains a deep-rooted issue despite government efforts over recent years. Figures from the Housing Agency show that over 68,000 households were on the social housing waiting list at YE 2019 with the number of households waiting longer than 5 years increasing by 10,659 (60%) since 2013. RTÉ reported yesterday that the government had met only 35% of its target for the supply of social housing in the first half of 2020 due to the reduction in construction as a result of Covid-19 restrictions. Only 9% of a target of 7,736 new-build units were supplied and the number of leased properties stood at only 15% of a target of 2,631. Local authorities have only purchased 355 homes, again short of its 800 home target. According to RTÉ, Housing Minister Darragh O’Brien said that additional funding to allow local authorities to refurbish vacant social housing stock has been secured to the value of €40 million. Although there is a need for the government to construct new houses, this is a medium-term solution and there is an urgent need for the government to supply housing in the near term. This is where a strategy of refitting and refurbishing homes would prove beneficial. The restrictions imposed due to Covid-19 have exacerbated the social housing crisis and with unemployment climbing, it is likely that the need for social housing will increase.
US stocks climbed yesterday with the S&P500, Dow Jones and Nasdaq climbing 1.74%, 1.91% and 1.88%, respectively, following tweets from President Trump where he stated that he was ready to sign a standalone bill that would provide stimulus cheques of $1,200. This was a partial u-turn on tweets from two days ago where he ordered his representatives to stop negotiating which led to a selloff in US stocks. A difference still remains between the total amount of the fiscal stimulus package that Democrats and Republicans want. European stocks didn’t react to the news from the US as the Stoxx Europe 600 fell -0.12%. The price of gold climbed 0.4% to $1,887.42. Brent crude fell -1.55% to $41.99 a barrel. (Source: Bloomberg)
Best & Worst Performers of Large Cap US Stocks on Wednesday
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Global Market Update
(as at close of markets 07/10/2020)