D-PIMS Weekly Market Update - Week of 11th to 17th January 2021
Today’s Monday Update:
Over the course of last week, most headlines were related to the US Political situation and Coronavirus:
• On Monday, US Congressional Democrats begin their drive to force President Donald Trump from office, kicking off a week of legislative action. This would end with a vote that would make him the only president in U.S. history, to be impeached twice.
Republicans in the U.S. Congress faced growing backlash on Monday, from businesses that said they would cut off campaign contributions to those who voted the previous week to challenge President-elect Joe Biden’s victory. The announcements by Amazon.com Inc, General Electric Co, Dow Inc, AT&T Inc, Comcast Corp, Verizon Communications Inc, American Express Co, Airbnb Inc, Cisco Systems Inc, Best Buy Co Inc and Mastercard Inc, among others, threaten to cut-off fundraising resources for Republicans, who will soon be out of power in the White House and both chambers of Congress.
• Democrats gave President Donald Trump one last chance on Tuesday to leave office, days before his term expires or face an unprecedented second impeachment over his supporters’ deadly 6th January assault on the U.S. Capitol. Unsurprisingly, he declined the offer.
• Prime Minister Boris Johnson said on Wednesday, that tougher restrictions brought in the previous week were starting to have an effect on the spread of COVID in some parts of the country, cautioning that it was still early days. He also said he did not rule out bringing in even tougher restrictions to try to temper the spread of the coronavirus, which has largely been driven by a new variant.
Donald Trump on Wednesday, became the first president in U.S. history to be impeached twice, as 10 of his fellow Republicans joined Democrats in the House of Representatives to charge him with inciting an insurrection in the previous week’s violent rampage in the Capitol. The Senate’s Republican majority leader, Mitch McConnell, rejected Democratic calls for a quick impeachment trial, saying there was no way to conclude it before Trump leaves office. However, even if he has left the White House, a Senate conviction of Trump could lead to a vote on banning him from running for office again.
• The Biden administration on Thursday revealed a colossal, nearly $2 trillion proposal to address the economic harm from the COVID-19 pandemic, that included $20 billion for vaccine distribution and $50 billion for testing. It builds on the $1.4 trillion COVID relief bill passed in December, more than tripling the funding allocated to state and local governments for vaccine distribution. More than a month into the United States’ vaccination campaign, around 11 million Americans have been vaccinated – far short of the Trump administration’s initial goal of 20 million people by the end of 2020.
• Over the week, the main Global Stockmarkets were mostly down apart from Far Eastern Markets. This was mainly due to the worsening rates of Coronavirus infections in the West, even as the vaccine roll-out builds up. The investment D-PIMS Portfolios were a little down over the week. They were helped by their diverse allocation.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.
Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.