Broad Panic – But Finally Meaningful Policy Action

Mar 23, 2020

10:21 am

• Market panic in full flow • However, policymakers are well engaged and starting to deliver scale intervention • Economists at a loss to understand the true scale of the likely recession • Fear of massive deleveraging particularly amongst corporates • Policymakers need to work hard to mitigate mass unemployment • Bonds are better supported…

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Panic has no bounds

Mar 16, 2020

9:45 am

• Panic in the financial markets prompts policymakers to accelerate their efforts to support the global economy • Fed cuts rates to near zero and provides $700bn of further liquidity – but equities are limit down • Governments will need to expand fiscal policy substantially to replace the collapse in economic activity • Global growth…

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Event Update

Mar 9, 2020

4:08 am

Global equity markets including India, have taken further deep cuts today as a confluence of factors play out – Crude oil price war, spread of coronavirus and domestically the Yes Bank cookie crumbling. As we write this note, US S&P 500 is cooling at a circuit breaker down 7% today and down 17% from its…

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The Great Leveller

Mar 2, 2020

10:33 am

“The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is the fear of the unkown”Not ironically, the quote is by a horror fiction writer. And the past week of equity markets may well have been scripted by someone like that. The newly identified coronavirus Covid19, that Bill…

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