Coronavirus and the economy: your questions answered April 6, 2020 | City Talk Chief Economist & Strategist Keith Wade chatted to us about coronavirus and its economic impact. Here are your nine questions answered. Q1: How do you think that the virus will affect the global economy? It is going to have a very significant impact. The virus could create a fall in GDP unlike anything that we [...]
The impact of coronavirus on dividends April 2, 2020 | City Talk As UK banks temporarily suspend all dividend payments, we discuss the effect coronavirus could have on a vital source of income for investors. What’s happening to dividends? The coronavirus crisis and oil price war are having a profound impact on economic growth and the cash position of companies. Many businesses in the most affected sectors [...]
What impact is Covid-19 having on global economies and markets? March 31, 2020 | City Talk The impact of the new coronavirus (Covid-19) pandemic continues to play out. The extent to which the virus will spread, both between and within countries remains unclear, and the duration and impact are highly uncertain. Sadly, the human impact continues to grow, and the virus has now claimed the lives of over 22,000 people, as [...]
How coronavirus is turning the spotlight on sustainable investing March 25, 2020 | City Talk It is difficult to start any article without referring to the threat presented by the coronavirus sweeping across countries. The human impacts are clearly devastating for anyone affected, even if the overall impact is at present relatively small in the context of major pandemics through history. The economic and financial impacts are also proving significant. [...]
How coronavirus could change our working lives (and the climate) March 24, 2020 | City Talk financial markets. The epicentre of the shock is clearly being felt in travel related industries, as people cancel or put holiday plans on hold, and businesses cancel conferences and move to remote working. Remote working tools widely available As an investor looking at climate change trends, these changes in working practices are interesting in an [...]
Coronavirus to spark “severe” global recession March 20, 2020 | City Talk The coronavirus is having a severe effect on global economic activity and amidst considerable uncertainty we have attempted to gauge the impact and updated our forecasts. We now expect to see the world economy contract this year by 3.1%, before rebounding by 7.2% in 2021. The forecast incorporates a severe recession in the first half [...]
Johanna Kyrklund: Are opportunities beginning to emerge? March 18, 2020 | City Talk After the dramatic market falls of the last few weeks, valuations are looking more appealing. But the risk of a prolonged recession means investors should remain cautious. Last week I said valuations are still not cheap enough to warrant taking more risk. After the large falls we’ve seen this week, is this starting to change? Part of [...]
Keith Wade: Is the world now heading for recession? March 13, 2020 | City Talk As I returned to the UK last weekend, my taxi driver talked of panic-buying and impending food shortages. Having wondered if I had stepped off at the wrong airport, it subsequently became clear that his thinking was very close to that of the markets. On Monday (9 March), equities sold off and credit spreads widened [...]
How should investors act in a crisis? March 11, 2020 | City Talk With markets reeling from the effects of coronavirus, Schroders’ Group CIO, Johanna Kyrklund, highlights what investors should focus on. Coronavirus is the latest threat to market harmony that once again poses a timeless question: how should investors act in a crisis? Whether you’re a fund manager, responsible for billions of pounds of other people’s money, [...]
How stock markets perform after heavy falls March 10, 2020 | City Talk Coronavirus concerns have swept through financial markets. Globally, stocks have endured some of their worst performances since the days of the financial crisis. For instance, the US stock market, as measured by the S&P 500, fell 7.6% in one day on 9 March 2020, its fifth worst trading day since 1988. On the same day, [...]