The initial shock of the pandemic has subsided and major support packages for households, businesses and financial markets have been released by monetary policymakers and governments. In episode 11 of Delta, Andrew Jackson, Head of Fixed Income at the international business of Federated Hermes, speaks with colleagues about the recovery scenarios currently under debate:
- Eoin Murray, Head of Investment, who discusses which stage of the crisis markets are in and what developments in the wider world – from medicine to industry to consumer appetite – are needed to create a foundation for an enduring recovery
- Alex Knox, Portfolio Manager – US Small & Mid Cap Equities, who shares insights into the practicalities of how domestic US firms are accessing the financial support provided by the government and her outlook for select industry sectors
- Neil Williams, Senior Economic Adviser, who explains why he disagrees with the consensus view among economists of a V-shaped fall and rebound, since the world economy is suffering a shock to demand as well as supply
“There is stimulus, which will replace earnings and income in the short run, but the economic activity that should have been taking place won’t be there,” Murray says. “We need an answer from the medical community about a treatment, which will determine the trajectory of the economy probably more than monetary or fiscal policy.”
What is the shape of the recovery lying ahead? Explore the scenarios: tune in to Delta.
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