As we start another week of lockdown, the signs of strain are starting to show, with not only people getting restless, but the business sector too.
This week should see the payment of funds finally start to land in Employers’ bank accounts under the government job retention (furlough) scheme, bringing much-needed relief to many companies. However, as I have alluded to previously, I fear that this week will also herald the start of company closures across the spectrum, due to the prolonged inactivity.
As the Prime Minister returns to work, expect plenty of calls for clarification as to the process for exiting lockdown. This weekend we heard Mr Raab say that it would be unwise to give such information, but I suspect that will just not wash with the business community, who need to know how they can position their firms for the coming months and rightfully so!
This week will see the publication of trading data in the United States for several leading tech firms (the likes of Apple, Google and Amazon) and this will no doubt lead sharemarkets, if they are above or below expectations. Back in the UK, such data has been suspended, but I would expect it to be a fair reflection of what we could expect to see in the UK in terms of the impact of lockdown. I am sure that, whatever the picture, it will reinforce calls for the business sector to be able to get back to working, in some form or other.
Closer to home, this week saw my Father diagnosed with Covid19, having contracted it in his previous Care Home. He looks to have shaken it off, but I can now understand why there are calls for more clarity on what exactly is happening with the slow roll-out of the testing process.
I spent the latter part of the week in discussion with a couple of investment providers, in order to raise a very important point which was put to me by a Client who questioned what exactly happens to justify management charges when an investment loses money, such as we have seen in the past month, pretty much across the board.
Whilst there can be little doubt that investment management teams work extremely hard in a downturn, in order to try and protect and reposition their portfolios for recovery (some shares and bonds will be more in favour than others in a recovering market), it is certainly a ‘niggle’ to see any investment loss being compounded by the addition of charges and, to this end, I have asked whether companies can do more in terms of demonstrating to their customers what they actually do with your money in times like these.
It is possible to look at fund reports, but they only provide a snapshot and brief commentary, whereas it may be more helpful to know how many actual trading transactions are taking place and to see that the ‘team’ are working hard for their salaries.
I think its a very valid observation and I hope to hear more, one suggestion being a ‘flyer’ in with your regular statements maybe, showing some of the main activities that have taken place since the last statement was sent.
That’s it for today, but let’s hope for a positive week ahead, on both the health and wealth fronts!