Last week was a busy one for the Prime Minister. On Monday, he was back at the helm and kicked off by addressing the nation from Downing Street. He thanked the people of this country “for the sheer grit and guts you have shown and are continuing to show.” He warned that the UK is at the point of “maximum risk” and that he would not “throw away the sacrifice of the British people” by easing lockdown restrictions too quickly. 

On Wednesday, just 17 days after he had left hospital, he and his fiancée Carrie Symonds celebrated the birth of their first child. With Paternity leave on hold, the following day he was back on the podium for the daily briefing. The PM said he will set out a comprehensive plan this week, in which details will be provided on how to restart the economy, reopen schools and get people back to work. He said the UK was past the peak of the virus outbreak and talking about the efforts of government, NHS, Public Health England and local authorities, said, “We are throwing everything at it, heart and soul, night and day.”

Testing target met – “an incredible achievement” 

Health Secretary, Matt Hancock confirmed on Friday that the government had met its “audacious” 100,000 tests per day target by the 30 April deadline. Hancock praised all those involved as he confirmed more than 122,000 tests had been conducted on the final day of the month. He hailed the expansion in British testing capability “an incredible achievement”.  

Later it emerged that over 27,000 of the figure came from the tests that have been mailed to homes and 12,800 had been delivered to centres such as hospitals and NHS sites, with no clarity if they have been conducted yet. 

The government’s “next mission” is its test, track and trace operation, work is currently under way to roll it out, the intention being that by the middle of May an initial 18,000 contact tracers will be in place. The COVID-19 NHS app, which is due to be trialled on the Isle of Wight, will be able to tell where the virus is spreading and help control new infections. 

Trade back on the agenda 

At the end of the week, market sentiment was negatively impacted by President Trump’s threat to impose new tariffs on China. The President is threatening trade tariffs to punish Beijing for its alleged failure to contain the virus. Wall Street sold off sharply in response. A slump in energy company stocks led the UK’s FTSE 100 index lower on Friday. 

There were warnings from the European Central Bank’s chief economist that it may take three years for the eurozone to recover fully from the shock of the pandemic, whilst data from the US showed that GDP in Q1 shrank at its fastest rate since the 2008 financial crisis. Bleak assessments of the economic outlook by policymakers across the globe have been accompanied by expressions of determination to keep injecting liquidity into the financial system. On Wednesday, Chair of the US Federal Reserve, Jerome Powell, commented: “We are still putting out the fire.” The Fed committed to using its ‘full range of tools’ to support the US economy throughout this crisis.

A national treasure 

Second World War veteran Captain Tom Moore thanked the public for their “very overwhelming” generosity, as his fundraising tally topped £32m on his 100^th birthday on Thursday. Among the thousands of birthday greetings was a personalised card from the Queen and a recorded message from Boris Johnson. He was honoured with an RAF flypast and informed of his promotion to honorary colonel. 

Advice makes sense 

We’re here to support you in uncertain times. Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have.  

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

“There is light at the end of the tunnel”

On Thursday, as anticipated, Foreign Secretary Dominic Raab confirmed that lockdown measures would be extended for at least a further three weeks, outlining five specific points which the government would need to be satisfied of before considering it safe to adjust the measures:

• The NHS must be able to cope and provide sufficient care
• Evidence showing a sustained and consistent fall in daily death rates
• Reliable data showing the rate of infection is decreasing to manageable levels
• Ensuring the supply of tests and Personal Protective Equipment (PPE) could meet future demand
• Confidence any adjustments will not trigger a second peak.

He went on to justify the continuation of measures, “We’ve just come too far, we’ve lost too many loved ones, we’ve already sacrificed far too much to ease up now, especially when we’re beginning to see the evidence that our efforts are starting to pay off. And your efforts are paying off. There is light at the end of the tunnel.”

Despite the sombre news of the rising death toll, heart breaking losses for every family affected, there are some positive indicators. The number of people being hospitalised in certain parts of the country is decreasing, some flattening of the curve is evident as social distancing measures begin to feed through. The rate of infection in the community has reduced to under 1, meaning that, on average, each infected person is infecting less than one other person.

Furlough scheme extended

On Friday, Chancellor Rishi Sunak announced that the Coronavirus Job Retention Scheme would be available for another month until the end of June and would be extended again “if necessary”. Under the scheme, the government covers 80% of workers’ wages up to £2,500 per month. Mr Sunak commented, “With the extension of the coronavirus lockdown measures yesterday, it is the right decision to extend the furlough scheme for a month to the end of June to provide clarity.”

A “colossal undertaking”

The government continues to face criticism for not providing enough PPE for healthcare workers. As supply challenges persist, thousands of items of PPE are scheduled to arrive in the UK, meanwhile Public Health England has revised guidelines on PPE use.

Alok Sharma, Business Secretary, led the Friday daily briefing and outlined the setting up of a Vaccine Taskforce to accelerate, expedite and coordinate efforts to research and produce a coronavirus vaccine, positioning the UK at the forefront of international efforts to fight the virus. He called producing a vaccine a “colossal undertaking” that would take many months.

Economy and markets

Global markets rallied on Friday as investors were encouraged by President Trump’s plans to reopen the US economy in a three-stage approach. Helping markets shrug off a 6.8% decline in Chinese GDP in Q1, sentiment was also buoyed by Boeing’s announcement it would resume production of commercial jets. Oil prices have been weak, despite the Organization of the Petroleum Exporting Countries and other producers announcing a deal to cut output.

Also on Friday, the International Monetary Fund updated its COVID-19 response, ‘Assuming the pandemic fades in the second half of 2020 and that policy actions taken around the world are effective in preventing widespread firm bankruptcies, extended job losses, and system-wide financial strains, the Fund projects global growth in 2021 to rebound to 5.8%. This recovery in 2021 is only partial as the level of economic activity is projected to remain below the level we had projected for 2021, before the virus hit.’

Ray of sunshine

Capturing the hearts of the nation, 99-year-old veteran Captain Tom Moore, has raised over £25m for the NHS, by completing 100 laps of his garden before his 100^th birthday. A truly heroic effort. The NHS has invited Captain Moore to be the guest of honour at the opening of the new Nightingale hospital in Harrogate to honour the Yorkshire native’s fundraising efforts.

Keep in touch

Financial advice is essential in the current circumstances. You can rely on us for considered, measured advice to assist you in navigating these uncertain times.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

“We are making progress in this national battle”

As the lockdown continued over the sunny Easter weekend, the government urged people to have a ‘stay-at-home Easter’. In the UK on Easter Sunday, a sombre milestone was reached, as recorded deaths in hospitals passed the 10,000 mark.

Following a week at St Thomas’s Hospital, including three nights in intensive care, the Prime Minister was discharged on Sunday. In a video message, he paid tribute to the NHS, saying there was “no question” the NHS saved his life. In a heartfelt message he continued, “We will win because the NHS is the beating heart of this country, it is the best of this country, it is unconquerable, it is powered by love.” On the advice of his medical team, the Prime Minister will not be returning to work immediately and will spend time convalescing at Chequers.

Boris Johnson also thanked the millions of people across the country who have been following the rules on social distancing, adding “We are making progress in this national battle against coronavirus.”

“Herculean effort”

A major theme of the week was the supply of personal protective equipment (PPE), with many NHS workers saying they still did not have sufficient. On Friday, Health Secretary, Matt Hancock said it had been a “Herculean effort” but there was now enough kit for everyone and unveiled a comprehensive plan for addressing shortages.

Last Thursday, Dominic Raab, who continues to deputise for the PM, chaired an emergency Cobra meeting, with senior ministers and officials from the Scottish, Welsh and Northern Irish governments, to “take stock and assess where we are right across the United Kingdom” on social distancing measures. It is highly anticipated that the restrictive measures which were announced on 23 March will continue. At the 13 April Downing Street conference, Raab stated that he does not expect any changes to be made to lockdown measures until the government can be confident they can be made safely. We will learn more later this week once the Scientific Advisory Group for Emergencies (SAGE) has assessed the data.

Further support initiatives

On 8 April, Chancellor, Rishi Sunak announced measures to support charities, comprising a £750m package to keep struggling charities afloat during the pandemic. The measures involve cash grants direct to charities providing key services during the crisis.

The Home Secretary, Priti Patel took her turn on the podium on 11 April. She disclosed that the National Domestic Abuse helpline has seen a 25% increase in calls and online requests since the lockdown, and pledged an extra £2 million to domestic abuse services.

“We will come out of this crisis more resilient”

Many major global stock markets gained ground last week, partly bolstered by fiscal and monetary stimulus aimed at cushioning the economic blow of the pandemic. European stock markets gained for a fourth straight day on Thursday, the FTSE 100 led the way. Sentiment was buoyed after the Federal Reserve outlined a $2.3tn program to bolster local governments and businesses. EU finance ministers also agreed a €500bn rescue package for European countries hit by the pandemic.

On 9 April, Kristalina Georgieva, International Monetary Fund Managing Director, released a paper, ‘Confronting the Crisis: Priorities for the Global Economy’, which concluded: “It is this common threat that brings us all together, to harness the greatest strengths of our humanity – solidarity, courage, creativity and compassion. We don’t know yet how our economies and way of life will change, but we do know we will come out of this crisis more resilient.”

Easter message of hope

Following her address to the nation on 5 April, the Queen also released an Easter message over the weekend, “Coronavirus will not overcome us”, the monarch said. Speaking from Windsor Castle and underlining the government’s public safety message, acknowledging Easter will be difficult for us but by keeping apart we keep others safe, she wished everyone of all faiths and denominations a blessed Easter, saying: “May the living flame of the Easter hope be a steady guide as we face the future.”

It’s good to talk

We remain composed and professional and will continue our considered, measured approach to carefully navigate these challenging conditions. Financial advice is key, so please don’t hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

The week everything changed

We saw a different face on the Downing Street podium on Friday afternoon, as Minister for the Cabinet Office Michael Gove took centre stage, while the Prime Minister self-isolated after testing positive for COVID-19. Gove announced plans to begin a large-scale testing programme of health workers and the construction of two further NHS Nightingale hospitals in Birmingham and Manchester.

In a video posted to his Twitter account, Boris Johnson was keen to emphasise he was suffering mild symptoms and would continue to lead the government (in the fight against COVID-19).

It’s life…but not as we know it

As confirmed cases of the virus surged, on 23 March, the Prime Minister appealed to the nation to stay at home to slow its spread. The government imposed strict restrictions on everyday life, which will be in place for at least three weeks. Mr Johnson said the country faced a “moment of national emergency” and staying at home was necessary to protect the NHS and save lives.

Chancellor casts another safety net

On 26 March, the Chancellor, Rishi Sunak unveiled much-anticipated measures to help self-employed workers in the wake of the crisis, telling them: “You have not been forgotten.”

Although stringent eligibility criteria apply, many self-employed workers will be able to claim a taxable grant worth 80% of their average monthly trading profits, to help them cope with the financial impact of the virus. Although not available until June, up to a maximum of £2,500 a month for up to three months will be paid in one lump sum. In an unprecedented level of support for the self-employed community, 95% of people who are majority self-employed will benefit from the scheme. The Chancellor added a caveat to the scheme: “I must be honest and point out that in devising this scheme it is now much harder to justify the inconsistent contributions between people of different employment statuses. If we all want to benefit equally from state support, we must all pay in equally in future.”

On the same day, as expected, The Bank of England held interest rates at a record low 0.1%.

Global fiscal measures

G20 governments have promised a multi-trillion revival effort, major central banks have reduced rates, eased monetary policy and restarted asset purchases. Once agreed, the US stimulus package helped support markets last week. After a three-day surge driven by government and central bank measures, the FTSE 100 fell at the end of the week following news of the PM’s self-isolation. In the US, a sharp increase in infections impacted markets at the tail end of the week.

Following a conference call of G20 Finance Ministers and Central Bank Governors last Monday (23 March), International Monetary Fund Managing Director, Kristalina Georgieva, commented: “The outlook for global growth for 2020 is negative, but we expect recovery in 2021. To get there, it is paramount to prioritise containment and strengthen health systems everywhere. The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be.”

A united front

In a heartening moment on Thursday evening, UK landmarks adopted a blue hue and millions across the country took part in a Clap for Carers, as the nation showed their support for those on the front line. An emotive moment for many as we stood unified, appreciative and proud. In an astounding act of selflessness, over 750,000 people have signed up to become NHS volunteers, tripling the government’s initial request for 250,000 supporters to help the most vulnerable in society.

Communication is key

We are here to reassure you that we continue to work hard and are here to support you. We understand that although concerns exist, so too do opportunities. Financial advice is key, so please don’t hesitate to get in contact with any questions or concerns you may have.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.