Covid-19 Daily Dashboard – 14 May 2020
An overview of key economic and financial metrics.
1 minute to read
Equities
Following a comment by the chair of the US Federal Reserve that the US may see an “extended period of low productivity growth and stagnant incomes”, with any recovery taking “some time to gather momentum”, global markets have seen declines. Rishi Sunak, Chancellor, suggested that it is “very likely” the UK is in a significant recession.
Bonds
Bonds: Following the above announcements, bond yields have been knocked slightly lower this morning. The UK 10-year government bond yield is currently 0.20%, German 10-year bund yield -0.55% and US 10-year treasury yield is 0.62%.
Currency
Sterling has depreciated this morning to $1.22, however the euro remains stable at $1.08. Hedging benefits for US dollar denominated investors into the UK are circa 0.18% per annum on a five-year basis. The currency hedging benefit of US dollar denominated investors into the Eurozone is 1.02% per annum on a five-year basis.
Baltic Dry
The Baltic Dry index declined for the 16th consecutive session, falling a further -8.1% to $398. The continued contraction in the Baltic Dry is indicative of the subdued demand for raw materials and subsequently manufacturing.
Insurance
COVID-19 could cost the insurance industry over $200 billion, of which half is likely to relate to claims such as trade credit, events cancellation and business interruption, according to Lloyds of London. Claims alone are likely to be on a par with the notable hurricane years of 2005 and 2017.
Download an overview of key economic and financial metrics relating to Covid-19 on 14 May 2020.