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Fidelity International - A rolling selection of articles related to the Coronavirus

We feature a selection of articles produced by Fidelity International. More articles are available on the Fidelity International Perspectives home page.




To access each article simply click on the heading below:


Macro briefing: More stimulus expected, but will it be enough? - 18/05/2020

As US policymakers weigh the next stage of stimulus to bolster the faltering economy, Federal Reserve chairman Jerome Powell has warned that the economic path ahead is still highly uncertain with significant downside risks. To avoid a prolonged recession and weak recovery, Powell said “additional policy measures” might be needed. As the unemployment figure rises to 36.5m in the US - will additional stimulus, however big, be enough to pull the economy through?


The new economic order - 15/05/2020

As the economic and social impact of Covid-19 plays out, new long-term trends will set the world on a unique course. Global CIO Andrew McCaffery and our Global Macro Team discuss what this new economic order could look like in terms of state intervention, fiscal activism and Asian leadership.


China’s tourists step out again -12/05/2020

China’s five-day May Day holiday was the first big test of domestic demand - and particularly tourism - since Covid-19 lockdowns started being lifted. We take a close look at China’s journey back towards normality and highlight some of the bright spots that we are seeing on-the-ground.


Macro briefing: Will the ECB be stopped from any further QE? - 8/05/2020

A ruling by Germany’s constitutional court questioning the legality of the European Central Bank’s (ECB) monetary policy poses long-term risks to the central bank’s flexibility. It doesn’t bode well for the Pandemic Emergency Purchase Programme (PEPP) and means the ECB may have to frontload their plans to elevate the impact of the pandemic at their June meeting. Anna Stupnytska, global economist, discusses the broader implications if the bank’s firepower was severely reduced.


Macro briefing: Central banks prepare for further action as economic outlook darkens - 04/05/2020

Are central banks doing enough to bolster their economies to ensure recovery once we know a path out of the pandemic? With news that both the European Central Bank (ECB) and the Fed hold steady for now on their policy movements, Fidelity’s head of global macro and investment strategy, Anna Stupnytska outlines what that means for global economics.


Does gold hold the key? - 29/04/2020

Across the Multi Asset Open range, gold has been an important asset and hedging component for the portfolios over the last few years. Chris Forgan, Portfolio Manager and Charlotte Harington, Assistant Portfolio Manager of the Fidelity Multi Asset Open range explain why that thesis has only strengthened in recent months and why its unique properties make it well positioned to take advantage of the new world order we find ourselves in today.


Oil below zero: bad, but not that bad - 22/04/2020

The plunge into negative prices for US WTI oil produced some shocking headlines, but it is due to a technical effect of the futures market. James Trafford, Analyst & Portfolio Manager explains what the technical drivers are behind the oil price.


Dividend cuts - why China is bucking the trend - 22/04/2020

A spate of dividend cuts or postponements has raised concerns among investors globally. We take a look at the forces driving this, while also highlighting some bright spots in China where a number of companies are maintaining - or even increasing - payments to shareholders.


Not business as usual - 17/04/2020

Global health, monetary and fiscal policy has been rightly focusing on limiting the worst impacts of the coronavirus outbreak over recent weeks. Paras Anand, CIO Asset Management Asia Pacific, takes a step back and assesses the longer-term ramifications for businesses in terms of taxation, regulation and unexpected shifts in the jobs market.


Macro briefing: Fed gets creative to mitigate tsunami of layoffs - 17/04/2020

The Federal Reserve (Fed) is now starting to think outside the box and using all creative tools at its disposal, and inventing new ones, to mitigate the surge of layoffs in the US. Wen-Wen Lindroth, Lead Cross-Asset Strategist examines whether these latest announcements will be enough to support the US employment market and the broader economy and discusses whether we should expect to see a ‘U’ shaped, ‘W’ shaped or any kind of recovery anytime soon.


Macro briefing: Clock ticking on further fiscal support - 13/04/2020

With US unemployment on a continuous upward spiral and Eurogroup finance ministers at a stalemate to move the Eurozone forward, we discuss what the broader implications are for markets. The Fidelity Leading Indicator - our proprietary quantitative tool that anticipates the direction and momentum of global growth - shows it’s half way to the Global Financial Crisis trough, so is it time for some more fiscal support?


The great reset - 09/04/2020

“This time is different” is a well-worn phrase but it may be an apt description for the unprecedented situation we find ourselves in. UK fixed income portfolio managers Sajiv Vaid and Kris Atkinson outline why the current crisis marks a line in the sand and the implications for companies, ratings agencies and ultimately investors.


Inflation - down but not out - 01/04/2020

Economic activity has fallen off a cliff over recent weeks and, with it, inflation expectations. But, aided by monetary and fiscal stimulus, will inflation re-emerge once economies re-open? In this context, Tim Foster discusses the outlook for inflation and the value he sees in break-evens.


China and the path from containment to recovery - 24/03/2020

Fidelity China Special Situations PLC’s Dale Nicholls charts China’s path as it emerges from lockdown towards recovery. He outlines how he has responded to this within the portfolio and discusses some of the areas which now offer a very attractive risk-reward profile given the price action we have seen.


Understanding market volatility - March 2020

Financial history shows that from time to time markets experience bouts of heightened volatility. These setbacks could be the result of any number of factors: economic uncertainty, monetary or fiscal policy changes, financial contagion or geopolitical tension, for example. With this in mind, we provide some interactive tools that take a look at the past and highlight what lessons we can learn for the future. You’ll also find some sales aids that you can share with your clients. Although they may be of most use when the market outlook is uncertain, they highlight some general principles of investment which may be helpful to your clients at any time in the cycle.


The three phases of investing through a global pandemic - 24/03/2020

Fidelity Global Special Situations Fund Manager, Jeremy Podger, reviews what has been one of the most eventful periods in a career spanning over 30 years. He also looks ahead to three distinct phases of the coronavirus pandemic - escalation, recovery and consolidation - and discusses how these map onto both equity market returns and economic activity.






March, April and May 2020

Please note that these are the views of investment professionals at Fidelity International and should not be interpreted as the views of RL360.


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For more information about Fidelity International visit www.fidelityinternational.com/


Author

Fidelity International

March, April and May 2020

Please note that these are the views of investment professionals at Fidelity International and should not be interpreted as the views of RL360.

360 fund links

A range of Fidelity funds can be accessed through our guided architecture products Regular Savings Plan, Regular Savings Plan Malaysia, Oracle, Paragon, Quantum, Quantum Malaysia, LifePlan, LifePlan Lebanon, Protected Lifestyle, Preference, Prosper, Kudos, Protected Lifestyle Lebanon, and also through our PIMS portfolio bond.