D-PIMS Weekly Market Update - Week of 16th to 22nd November 2020
Today’s Weekly Update:
Over the course of last week, most headlines were related to the Coronavirus or Brexit:
• Britain expects to start rolling out the Pfizer COVID-19 vaccine just before Christmas if it is declared safe and effective, health minister Matt Hancock said on Monday.
As Brexit talks resumed in Brussels, Britain said on Monday its red lines remained unchanged, but that it hoped to reach a trade deal with the European Union if the bloc chose to make progress.
Moderna Inc said on Monday that it’s experimental vaccine was 94.5% effective in preventing COVID-19, based on interim data from a late-stage clinical trial, becoming the second U.S. company in a week to report results that far exceed expectations.
• Britain is working hard to reach a deal with the European Union which fully respects the country’s sovereignty, but there are significant differences and time is in very short supply, an official from the prime minister’s office said on Tuesday.
Britain is confident that it will strike a trade deal with Canada by the end of the year, British trade minister Greg Hands said on Tuesday.
• Britain is beginning to look at its growing fleet of electric cars as both a way to create jobs and balance the power grid, moving transport to the centre of the fight against greenhouse gas emissions.
Prime Minister Boris Johnson on Wednesday called for phasing out of cars fueled entirely by petrol and diesel by 2030, 10 years ahead of the previous schedule. With National Grid Plc expecting as many as 30 million electric vehicles on the road by 2040, the energy and transport industry are stepping up their preparations for the shift.
• The U.S. presidential election battleground state of Georgia is expected on Thursday to affirm Joe Biden’s victory over President Donald Trump after a painstaking recount, which would deal another setback to Trump’s efforts to cling on to power.
On Thursday, Britain pledged to end the “era of retreat” by announcing a major increase in military spending, despite the coronavirus crisis pummelling the economy, as it seeks to define its post-Brexit role on the world stage. Prime Minister Boris Johnson said the extra spending reflected the need to upgrade military capabilities, with plans for a new space command and artificial intelligence agency.
• Britain could ease its stringent COVID-19 lockdown to allow families to gather for Christmas, because there are signs that coronavirus cases are starting to flatten as a result of current lockdowns, Health Secretary Matt Hancock said on Friday.
An aggressive China-led shift to electric vehicles is expected to slash global oil demand growth by 70% by 2030 and will help bring an end to the “oil era”, according to research by the Carbon Tracker think tank published on Friday. Within 10 years, China could save more than $80 billion in annual oil import costs as new-energy vehicles (NEVs) become increasingly competitive, Carbon Tracker said. Its calculations were based on a “conservative” scenario by the International Energy Agency projecting that electric vehicles would account for 40% of China’s total car sales by 2030, and for 20% of sales in India and other emerging markets.
• Over the week, the main Global Stockmarkets where mixed with some up and some down, particularly after taking the strengthening Pound into account. All the investment D-PIMS Portfolios were up over the week, especially the higher risk Portfolios. They were helped by their diversification.
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The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.