Good afternoon, it is 12th May 2020 and here is your economic and market update from BlackBee.
Today we are going to
focus on:
> FED support mutes
Bond Market
> Reopening of the UK economy could be set up for fall.
The
US 10 year Treasury yields sits at 0.7%, down from a March high of 1.19%. The
bond markets give insight into future expectations of an economy and show the
risk-free rate of return an investor can expect. However, indicators on the
economy given in the bond market are now muted and being called into question
as the FED have pumped money into the market over the past few weeks. With the
support of the FED, the market will not move too far in any one direction.
Yesterday the UK Prime Minister Boris Johnson announced a 51-page lockdown exit
strategy. In the last few weeks, medical experts have warned that vaccines will
not be ready for at least a year and potentially up to 18 months. Johnson began
his speech by reiterating that the UK could be battling the coronavirus for a
prolonged period until there is an available vaccine. For those who cannot
work from home, Wednesday will mark the beginning of a return to work.
Ministers have been pushing for a return to work for those in construction and
manufacturing. The move has been heavily criticised as it puts these workers at
risk.
After the announcement on Monday from Boris Johnson, there was also footage
released of commuters packing London Underground trains. Phasing the lockdown
exit strategy is vital for countries to prevent another outbreak and lockdown.
Letting workers back to workplaces that do not have safety measures in place
yet, combined with the risk in commuting to work on packed trains, increases
the likelihood of another forced lockdown, an outcome that an already fragile
economy cannot afford.
Best & Worst Performers of Large Cap Stocks on Monday
Global Market Update
(as at close of markets 11/05/2020)
