NEWS & VIEWS
FSL’s Chain Mail is a regular blog containing links to news articles that we think are worth sharing.
We find ourselves in uncharted times as we deal with the impact of Coronavirus on our lives and businesses. In this edition, we wanted to share links to some articles we felt gave a good view on the current situation and try to predict what might come next.
The immediate impact of the virus on the economy is evident with markets crashing across the world and Governments announcing more and more rescue plans. This article from FT Adviser provides a good explanation of the current impact on the economy and what is happening to supply and demand. It suggests that supply, demand and “Supply Shock” is the root cause of the colossal impact of Covid-19 on the economy. As well as clarifying the measures that governments are proposing for the future.
The scale of the economic issue is highlighted further by the FCA’s promise to curtail a market shutdown (reported here in Portfolio Adviser) and by UBS’s statement that a deep recession in Europe is its base case scenario (Business Insider article).
The impact of Coronavirus on the future is very unclear with all of us left to speculate. In Politico, some of the USA’s ‘smartest macro thinkers’ make their predictions of what is to come. While, this opinion piece in The FT suggests that growth in nationalism is a likely side effect.
Look out for our next edition with more FSL Chain Mail links.