Covid-19, Second Wave or Tidal Wave?

As we decided to include the possibility of this in our ‘Five Looming Dilemmas for 2020’ series, I hadn’t thought that by the time we came to produce the article we would be right in the middle of the event! Many of you will be under local lockdown, or back to working-from-home due on the latest government advice. One of my favourite authors, Adam Kay (best known for the book This is Going to Hurt), summarised it quite well in a recent tweet. Adam said, “I can’t believe the government’s plan of keeping cases down by telling us to go back to work and eat at restaurants as much as possible hasn’t worked.” I feel as though the UK response has appeared muddled at times. History and understanding For those who have been living in a cave, or recently arrived in 2020 via time machine, Covid-19 is a strain of Coronavirus that originated in China in 2019. Its highly contagious nature has resulted in a rapid spread throughout the globe and current statistics show it has infected over 38m people, with an excess of 1m deaths. The effect on consumers and world markets was initially one of panic, with toilet roll less prevalent than diamonds for the first time in recorded history, as supermarket shelves were stripped bare. Stock markets initially tumbled, with the FTSE100 dropping from around 7,400 in February to a low of around 5,000 in March, a near 39% drop. We currently sit around 5900, still 22.5%

2020-10-30T15:23:41+00:00October 30th, 2020|

Racing Towards The Final Furlough

I remember being glued to the daily briefings in mid-March after initially dismissing the early news with a ‘this will pass attitude’ – clearly Covid-19 was a different beast.  What I hadn’t expected was Chancellor Rishi Sunak’s announcement of the astonishing and unprecedented economic relief package for the UK. History and understanding This package announced on 20th March 2020 included grants to small businesses, access to alternative funding, deferred taxes, support for renters and additional financing for the welfare system.  Additionally, the Chancellor announced the scheme that most of us are now very familiar with and what this article will discuss; the Coronavirus Job Retention Scheme. Within this, the government agreed to pay for 80% of people’s wages so they can be furloughed rather than laid off to protect their jobs. This is one of the most important economic tools in recent history that has helped retain jobs in many of the business sectors that have been most affected by Covid-19. From 1st October, employers pay 20% towards furloughed staff’s wages and the government cover the remaining 60%. The furlough scheme now ends on 31st October 2020 and will be replaced by the Job Support Scheme and the extension of Self Employment Income Support Scheme.  The Job Support Scheme is designed to protect jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6

2020-10-19T09:57:42+00:00October 19th, 2020|

5 Looming Dilemmas of 2020 & the FX impact

By Jamie Jemmeson ACSI, MSTA & Tyler Betts, FX Risk Manager at Infinity International “You can't connect the dots looking forward; you can only connect them looking backwards. So, you have to trust that the dots will somehow connect in your future.” – Steve Jobs Steve Jobs’ philosophy of trusting that dots will connect may be very difficult to fathom in this current landscape; but who are we to question the man who created the world’s first trillion-dollar company. Infinity International will be providing content to our clients on several relevant topics covering a variety of possible concerns during these unprecedented times. To do this, we are drawing on our own experience, client feedback as well as the input from others in our network. Last month we covered a series on FX hedging and how this could assist your business in managing the current market volatility. This month we are looking at the topics which could impact on currency and potentially drive emotional decision-making surrounding FX hedging. In this series, we will focus on five key looming dilemmas of 2020 and what this may mean for FX. There may only be one or two ‘trend changing’ events in a normal year, that could significantly impact the direction of exchange rates; however, this year we have seen COVID-19 increase volatility with several other events on the horizon. 2020 has been a rocky road to date, but there are five further topics that could further drive market volatility. Each week we will cover

2020-08-21T09:45:21+00:00August 20th, 2020|