17
Jun
In April, UK sees sharpest drop in GDP (-20.4%) since 1703
Brutal economic shock in April. BOE must boost its action. Stability of the pound. Negative UK Treasury yields. FTSE100 benefits from favourable relative valuations.
Key Points
- The UK’s economy is headed for the worst economic recession in Europe
- Intense shock in April, the worst is probably over
- Exceptional governmental measures for a unique situation
- The BOE must go further to support the UK’s economy
- Likely injections of an additional 100 billion
- Nothing to expect from leading indicators?
- First issuance of negative-yielding government bonds
- Stabilisation of the pound sterling
- Fundamentals are still in favour of British equities and real estate
