Weekly Market Insight

Latest Economic & Market Update 9th December 2020

09th December 2020

Good afternoon, it is December 9th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • Turn-key homes key to solving housing crisis.
  • Water futures set to trade on Wall Street.

Kieron Brennan, the chief executive of Co-operative Housing Ireland (CHI) has said that the key to solving the housing crisis is the acquisition of so-called turn-key properties bought directly from private developers for social housing tenants. He said that over the next five years, the government had committed to delivering 50,000 new social housing units. CHI and other approved housing bodies are expected to supply over half of these. Mr Brennan also stated that there was no way the government’s target of 50,000 homes could be met without the acquisition of turn-key homes. The acquisition of these homes from private developers will also accelerate the pace of house building. (Source: Irish Times). This supports BlackBee’s strategy of addressing the social housing demand and supply imbalance. Refurb projects will provide the government with quicker access to social housing units to address the crisis.

Similar to commodities such as gold and oil, water futures are now set to trade on Wall Street for the first time this week. The CME Group is set to launch futures contracts that are tied to the Nasdaq Veles California Water Index which was launched two years ago. The index is driven by the volume-weighted average of transaction prices in California’s five biggest and most frequently traded water markets. Farmers, hedge funds and municipalities will now be able to hedge against future water availability in California. Unlike gold and oil contracts where there is a physical delivery if the futures contract is not closed out before expiry, water contracts will be settled and there will be no physical delivery. The futures contracts arrive as concerns continue to grow about the increasing demand for water and the decline in supply as a result of population growth and climate change. (Source: Business Insider).

Best & Worst Performers of Large Cap US Stocks on Tuesday
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Global Market Update
(as at close of markets 08/12/2020)