Judging by the stock market, the odds are rising for a reflationary run. Economic data, however, offer a conflicting view.
Gilead reports encouraging results for its antiviral Covid-19 tests: Reuters
Today’s US jobless claims report expected to post a 3.5 million rise: MW
Eurozone economy contracted 3.8% in Q1: MW
Fed chairman: More spending needed from Congress to support economy: WSJ
China Mfg PMI posts mild contraction in Apr after dramatic swings: IHS Markit
Big oil via Royal Dutch Shell cuts dividend–first time since WWI: FT
Global carbon emissions set to drop 8% this year: IEA
US pending home sales fall the most since 2010 due to coronavirus: BBG
US growth fell sharply in Q1–deepest decline in over a decade: NY Times
Losses still dominate year-to-date results for all the main regional slices of global stock markets, but China is holding on to it leadership position by posting a modest decline, based on a set of exchange traded funds through Apr. 28.
Second round of coronavirus is ‘inevitable,’ Fauci warns: CNN
Race for developing coronavirus vaccine expands with Pfizer tests: WSJ
What’s on the Fed’s agenda for today’s policy meeting and press conference? BBG
Investors expect big tech will dominate after crisis: NY Times
Eurozone economic sentiment in April posts biggest decline on record: Reuters
Richmond Fed Mfg Index declines sharply in April: RF
US Consumer Confidence Index plunges to 6-year low in April: CNBC
US home prices were rising steadily before coronavirus crisis in Feb: CNBC
Today’s US Q1 GDP report is expected to show a 3.8% fall in output: USAToday
If you didn’t know anything about the coronavirus and remained clueless about the economic devastation, you might look at a chart of the S&P 500 and think that a severe market correction was rebounding and equities would soon reclaim the previous high-water mark. Reality, however, isn’t quite that simple.
Oxford Group’s coronavirus vaccine may be available as early as Sep: NY Times:
China has near-total control over anti-biotic supply. Is America at risk? STAT
US oil prices continue to slide as lack of storage weighs on market: MW
What’s left in the Fed’s playbook after massive stimulus? CNBC
The Federal Reserve is reinventing itself during coronavirus crisis: WSJ
Surge in internet use due to coronavirus is good news for chipmakers: WSJ
Will US stock market look through dismal earnings season… or two: BBG
VIX Index (US stock market’s ‘fear gauge’) falls to 8-week low:
Despite a late-week rally in equity markets, risk-off sentiment dominated last week, leaving most of the major asset classes lower by the close of trading on Friday, Apr. 24. Bucking the trend: inflation-indexed Treasuries, which posted the best gain for the trading week, based on a set of exchange-traded funds.
Some US states begin to reopen their economies: WSJ
Treasury Sec. Mnuchin expects Q3 rebound for US economy: MW
Stock market’s rise is a bet on on testing, treatments to restart economy: Reuters
Bond market considers deflation risk ahead of this week’s Fed meeting: BBG
Surge in gov’t spending will lead to higher taxes… eventually: CIO
Consumer sentiment tumbles for 3rd month in April: CNBC
US Composite PMI: economic output collapses in April: IHS Markit
US durable-goods orders plunged 14% in March: MW
Daily rise in US Covid-19 deaths falls to 3-week low for Apr. 26: Johns Hopkins
● The Technologized Investor: Innovation through Reorientation
Ashby Monk and Dane Rook
Summary via publisher (Stanford U. Press)
Institutional Investors underpin our capitalist world, and could play a major role in addressing some of the greatest challenges to society such as climate change, the ballooning wealth gap, declining infrastructure, aging populations, and the need for stable funding for the sciences and arts. Advanced technology can help institutional Investors deliver the funds needed to tackle these grave challenges. The Technologized Investor is a practical guide showing how institutional Investors can gain the capabilities for deep innovation by reorienting their strategies and organizations around advanced technology. It dissects why technology has historically failed institutional Investors and recommends realistic changes that they can make to unlock technological superpowers. Grounded in the actual experiences of institutional Investors from around the globe, it’s a unique reference manual for practitioners on how to reboot their organizations for long-term performance.
Pandemics and Systemic Financial Risk
Howell E. Jackson (Harvard Law School) and Steven L. Schwarcz (Duke U.)
April 19, 2020
The coronavirus has produced a public health debacle of the first-order. But the virus is also propagating the kind of exogenous shock that can precipitate – and to a considerable degree is already precipitating – a systemic event for our financial system. This currently unfolding systemic shock comes a little more than a decade after the last financial crisis. In the intervening years, much as been written about the global financial crisis of 2008 and its systemic dimensions. Additional scholarly attention has focused on first devising and then critiquing the macroprudential reforms that ensued, both in the Dodd-Frank Act and the many regulations and policy guidelines that implemented its provisions. In this essay, we consider the coronavirus pandemic and its implications for the financial system through the lens of the frameworks we had developed for the analysis of systemic financial risks in the aftermath of the last financial crisis. We compare and contrast the two crises in terms of systemic financial risks and then explore two dimensions on which financial regulatory authorities might profitably engage with public health officials. As we are writing this essay, the pandemic’s ultimate scope and consequences, financial and otherwise, are unknown and unknowable; our analysis, therefore, is necessarily provisional and tentative. We hope, however, it may be of interest and potential use to the academic community and policymakers.