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.
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.”
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.