The Sharpest European QoQ Economic Contraction On Record

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The following are the comments from Henderson Rowe’s Artur Baluszynski and Kingswood’s Rupert Thompson, discussing the sharpest EU QoQ economic contraction on record, US economic data and the significant drop in economic activity.

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The Sharpest EU QoQ Economic Contraction

Commenting on the sharpest EU QoQ contraction on record, Artur Baluszynski, Head of Research at Henderson Rowe, said: The first quarter QoQ contraction of 3.8% is the sharpest on record. However, Germany only contracted by 2.2% and considering that France and Italy contracted by almost twice that much, we should expect to see some friction to arise when it comes to future contributions to any EU recovery structures.”

The Significant Drop In U.S. Economic Activity

Commenting on US economic data and the significant drop in economic activity, Rupert Thompson, Chief Investment Officer at Kingswood, said: The April economic data in the US have confirmed the extent of the drop in economic activity caused by the coronavirus lockdowns. Retail sales plummeted 16.4% m/m while industrial production was down 11.2%. This follows hard on the heels of yesterday’s news of a further rise in jobless claims in the week ending 7th May, which brought the total rise in claimants over the last few weeks to a massive 36mn. The lockdowns may now be easing but major question marks remain over how sustainable this will prove to be with infection rates still remaining high and how quickly economic activity will rebound.”  

About Kingswood

Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) integrated wealth management group, with on closing of the WFI acquisition around 5,500 active clients and c. £2.5 billion of Assets under Management and Advice

About Henderson Rowe

Henderson Rowe is UK boutique wealth management firm that provides private clients with institutional-quality investment strategies and asset allocation solutions.

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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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