Financial markets have been on a rollercoaster over the past year. There was a sharp drop in March as countries locked down and then a swift upswing followed, led by technology shares. Even unloved companies, particularly banks and energy firms, have rebounded lately, thanks to good news about vaccines.
Rather than try to reduce it by austerity, inflation or default, the government should focus on keeping the rate of economic growth above the cost of servicing the debt.
As COVID-19 continues to affect our lives and influence economic activity around the world, there’s lots of uncertainty about what the future holds. Localised outbreaks and lockdowns are possible anywhere until a vaccine is found, with the level of unemployment likely to be the key factor driving the pace of the recovery over the next couple of years.
Depending on what lens you choose, the value of equities can vary widely. We’ve looked through as many as we can, and we’re maintaining a vigilant optimism.
Confusion reigns because of the sheer amount of information flying around us. Yet all that activity should bring us comfort as it's helping fight the pandemic and its economic effects, argues head of fixed income Bryn Jones.
Our lives have been turned upside down by the coronavirus crisis, which is having a profound impact on the global economy and financial markets. Governments are working hard not just to slow the spread of the virus but also to help businesses and their employees. They've announced a range of extraordinary measures, which are being supported by action from central banks.
A plunge in oil prices has sent markets reeling, but the epidemic is still the main concern.
Government budget balances are misunderstood. By politicians — sometimes wilfully — and even by some economists. So it’s no wonder then, if they’re misunderstood by the public.