What the data tells us about the shape of the US economic recovery August 7, 2020 | City Talk Looking at high-frequency data in the US, the key question is whether momentum in consumer spending can be sustained. Some signs of the much hoped-for V-shaped recovery have started to emerge for the US economy. While consumption collapsed in March and April due to lockdown measures and a jump in unemployment, stimulus cheques provided an [...]
How to improve your forecasting in a constantly changing world August 6, 2020 | City Talk Companies are moving to the next phase of business planning, with one eye on economic recovery and the other on what their business and industry will look like as they emerge from and go beyond the crisis. But the future is a blind spot for many. Prior forecasting methods, based on past customer demand, may [...]
Could the bounce-back be quashed by a second wave? August 4, 2020 | City Talk With some countries fearing a second wave of Covid-19 cases, Schroders’ chief economist Keith Wade considers whether a bounce back in the economy could be quashed. While there are hopes that the easing of lockdowns and reopening of businesses are beginning to give life to the global economy, fears of second waves of infections are [...]
Schroders profit dips in first half even as assets rise July 30, 2020 Schroders today posted a 10 per cent fall in profit before tax and exceptional items in the first half of the year amid rising outflows in mutual funds and a contraction in revenue margins. Britain’s largest-listed fund manager by market capitalisation reported £306.2m in profit before tax and exceptional items for the first half of [...]
Does Covid-19 mark the beginning of the end for cash? July 29, 2020 | City Talk Many European countries were already moving away from cash transactions and the pandemic will only speed up this trend. The Covid-19 crisis has changed our daily lives in multiple ways and accelerated a number of trends that were already in place. For many of us, one obvious change is that the need to use cash [...]
Why investing sustainably can get you better income and better outcomes July 23, 2020 | City Talk For those that remain sceptical, we show that an integrated ESG approach can improve income stability. Not only is it possible to combine income investing and sustainable investing, we believe you can actually make your income more resilient, smooth and reliable by investing sustainably. Many things have changed for investors in a post Covid-19 world, but [...]
What are the long-term prospects for healthcare investing post Covid-19? July 16, 2020 | City Talk The pandemic has shone a spotlight on healthcare but what happens when a vaccine is found? We asked Schroders’ investment experts for their views on the sector’s long-term prospects. The Covid-19 crisis has hurt most economic sectors this year. As of 30 June, healthcare was one of only three sectors to post positive year-to-date returns [...]
DEBATE: Is there any point in members of the wealthy elite calling for higher taxes in response to Covid-19? July 14, 2020 In light of this week’s Millionaires for Humanity letter, is there any point in members of the wealthy elite calling for higher taxes in response to Covid-19? Gary Stevenson, inequality economist and trader, says YES. On Monday, 83 millionaires — myself included — signed an open letter calling on governments to raise taxes on people [...]
What are “accidental savers” doing with their surprise savings? July 14, 2020 | City Talk Lockdown restrictions have curbed spending, resulting in higher savings in the UK. Some of this has found its way into the financial markets; actively managed responsible investment funds have been the biggest beneficiaries. The words “accidental” and “saver” don’t often appear in the same sentence together. Saving usually takes some effort and requires sacrifices and [...]
Wealthy investors anticipate lasting lifestyle shifts after coronavirus July 13, 2020 Wealthy investors have not been immune to the disruption caused by the coronavirus pandemic, and anticipate long-term lifestyle changes as a result. Three quarters of wealthy investors in the UK see a permanent shift in the wake of the crisis, according to research by wealth manager UBS. The survey of 200 UK-based investors, with between [...]