Continuing worries over the potential economic impact of the coronavirus are already driving government policy decisions. European markets climbed to record levels after China cut tariffs, with Beijing moving to reduce levies as part of a new trade deal. No one can be sure about the extent to which the spread of the virus will drag on the global economy, but the fatality list is now into the hundreds, and with no clinical breakthrough in sight, there is bound to be a significant material impact beyond the tragic human cost.
Any public health scare will invariably alter capital allocations within the pharmaceutical sector, so readers will probably be paying a little more attention to how industry heavyweights like GlaxoSmithKline (GSK) are faring. Click here to get the lowdown from Nilushi Karunaratne on the group’s full-year returns for 2019.
One would imagine that emerging market funds and indices could feel the chill if the spread of the virus isn’t effectively contained. Alex Newman has been reviewing half-year figures from Ashmore (ASHM), one of the more vulnerable listed entities. Click here to read Alex’s thoughts.
Housing is another area which is under increased scrutiny, though in this case it is linked to expectations that the new Conservative government will intervene in the market. For now, builders like Barratt Developments (BDEV) are dealing with legacy issues linked to alterations to existing properties in the wake of the Grenfell Tower disaster. Click here to get Emma Powell’s take on the group’s half-year results.
The packaging sector is sometimes held up as a leading indicator of broader economic activity. But companies like Smurfit Kappa (SKG) have become more vulnerable to regulatory change in the face of mounting environmental concerns. Click to get Alex Janiaud’s summation of the group’s figures from 2019.
