top of page
  • Writer's pictureEdgar Rayo

Finanze® Daily Digest - 19/09/2022

Updated: Sep 29, 2022

The Brief: Today marks the Queen’s state funeral and along with it comes economic consequences as offices and commercial establishments pay their respects by closing down today. As they put their operations on hold, the Bank of England (BOE) has also announced it will postpone its Monetary Policy Committee meeting to Thursday as we await how high the new interest rate hike will be.

Why It Matters: As previously discussed, tradition can be costly, but nobody skips it out of respect, especially for a royalty revered by her countrymen. UK gross domestic product (GDP) only recovered by 0.2%, after falling 0.6% in June, according to the Office for National Statistics. But today’s public holiday is most likely to mark a significant dent on GDP similar to the impact of the Queen’s Platinum Jubilee event. The effect will keep us closer to a technical recession.

Finanze® Foresights: Although the influx of tourists can somehow mitigate the effects of the temporary business shutdown today, we expect today’s event and the upcoming coronation of the new monarch to push earnings for the tourism and trade sector by around £40 to £65 million. But still, the second quarter economic contraction will likely continue as weaker activity will be observed when offices and manufacturing sites shut down today, not to mention the suspension of football events, golf tournaments and cricket test matches that generate millions of pounds in ticket sales and indirect revenues.

--- To the fullest extent permitted by law, Finanze Ltd are not responsible for any errors or omissions in any statements, views, opinions, facts, figures, commentary or any other material in the articles contained herein, or for loss arising from its use or performance, or for the results of any actions or lack of action taken on the basis of information provided in articles.

The topics covered in articles are complex and do not substitute the need for financial, legal, accounting, tax and other advice before making any decisions or taking any action based on information in articles.



Commenting has been turned off.
bottom of page