CIO Daily Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management
Equity markets rallied and government bond yields rose as investors digested the news of further stimulus packages. In the US, President Trump promised a “big, bold package” including $250 billion spent on sending a $1,000 cheque to individual Americans within two weeks.
The US Federal Reserve announced a program of up to $1 trillion to buy commercial paper from US companies after signs of stress were building. Treasury Secretary Steven Mnuchin said “we heard loud and clear there were liquidity issues”
In the UK, Boris Johnson announced a plan to support UK businesses and individuals stating “we must act like any wartime government and do whatever it takes to support our economy”.
Chancellor of the Exchequer Rishi Sunak set out a plan that includes £330 billion in loans for businesses that need cash to cover expenses as well as £20 billion in tax cuts and grants. Individuals will be allowed to take a three-month mortgage holiday whilst shops and restaurants will not have to pay business rates this year.
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