Key points Global recovery is on track - vaccines are working. The end of JobKeeper won’t derail Australia’s recovery. Inflation could become an issue in the medium term. Shares are at risk of a correction but remain supported by economic and earnings recovery. Australian house...
Introduction Volatility associated with November’s US election should finally be over, enabling investors to refocus on economic prospects and the outlook for corporate profitability and central bank policy. Joe Biden was sworn in as the 46th President of the US. The transition of power was far from...
Australia: The Reserve Bank of Australia cut the official cash rate to a new historic low of 0.1%. The Treasurer released Australia’s latest Federal Budget. This was essentially a ‘no-surprises’ package of measures designed for Covid-19 challenged times. Given the scope of the challenge, the budget deficit...
Introduction Covid-19 developments continued to dominate attention. There were spikes in the number of new infections in both Australia and overseas, suggesting an economic recovery may be delayed. Share markets powered ahead, however, as investors remained convinced that governments and central banks will provide sufficient financial assistance...
Market and Economic overview Australia The coronavirus ‘curve’ of known cases has flattened out, suggesting social distancing measures have been successful in slowing the spread of the disease. The focus is now on a gradual easing of restrictions – people will gradually start returning to work...
Introduction The blanket coverage of coronavirus and its impact on the economy can lead to a lot of confusion. Some reports are hopeful of anti-viral drugs, others say a vaccine is at least a year away. There is talk of curve flattening but still rising cases...
Introduction After a roughly 35% plunge from their February high point to their lows around 23rd March, global and Australian shares have had a 15-20% rally. What’s more, this rally has occurred despite increasingly bleak economic data ranging from plunges in business conditions surveys (or PMIs) to...
Introduction Along with the horrible human consequences, the coronavirus pandemic is having a huge impact on the way we live and, as a result, investment markets. This has raised a whole bunch of questions: why does a big part of the economy have to go into ‘hibernation’?...
What it means for individuals, retirees and the Australian economy With the COVID-19 coronavirus crippling the Australian economy and affecting livelihoods, the Australian Federal Government has announced a range of measures to support both businesses and individuals. The total stimulus announced to date is worth $189...
Key points While reported new coronavirus cases in China have slowed, the pickup in cases outside China has led to a renewed sharp fall in share markets and bond yields. Our base case is that the outbreak will be contained allowing share markets and bond...
