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[dround87] 11/3/2020 10:58

Would sell my house to buy at 80

[1 nhs] 11/3/2020 10:35

Business travel across the world has crashed. Big tech firms, including Amazon, Google, Apple, Microsoft, and others, have restricted employees from traveling overseas. Many of these employees are being sent home for the next month. Similar restrictions are being seen with major US banks. As a result of reduced travel by corporate America and consumers as a whole, the travel industry is headed for a crash, which means airlines, hotels, restaurants, cruise ships, and casinos are going to see a sharp decline in traffic for the next several months

[spacedust] 11/3/2020 10:22

80p coming in April 2020

[jailbird] 11/3/2020 10:11

I did not get that to be honest but Nick Ferrari was impressed with the comment as said he will bring it up tomorrow when he interviews the chancellor

[m1k3y1] 11/3/2020 10:04

jailbird......small businesses do not have debt ? Where did you hear that.

[jailbird] 11/3/2020 10:03

Cutting rates and printing money is not the answer This is not a credit crisis Also small businesses will not benefit from rate cut as these businesses do not have debt . This is a consumer crisis who cannot go out and spend This is looking after the banking sector again not the man on the street Let's see what the budget says

[smithys2019] 11/3/2020 09:46

Yep. Lots of buying opportunities whilst boomers flap about a cold.

[hamhamham1] 11/3/2020 09:40

But the intervening 6 months will be very choppy.

[smithys2019] 11/3/2020 09:30

Printy Printy, asset purchases, then possible helicopter drops. Corona round one will be done by September. Second round possibly around Christmas. By then, guidance will have switched. Primarily affecting retirees, people will accept it is about, aged will be isolated and working age people will be isolated when infected. Life needs to go on.

[smithys2019] 11/3/2020 09:29

We are at the start of where new Labour were in 2000... nearly got the deficit under control (indeed we were in surplus) then blow the bank at the wrong time.

Politicians egos.... the new conservative government need to deliver or they are dead up north. Can’t borrow to improve infrastructure without an economy paying decent tax revenue. And to be fair, 1.75% is a negative real rate. People are paying the government to borrow (mindful borrowing in the long term is inflationary). This far higher then Keynes and Friedmann. Politician egos.

[hamhamham1] 11/3/2020 09:24

Depends in what part in the economic cycle we are.
When things have been up too long, I look for reasons to trigger a down, and when we been down too long I look for reasons to trigger an up.
Cycles exist, ignore them if you want.

[m1k3y1] 11/3/2020 09:22

ham.......do you ever see anything positively

[hamhamham1] 11/3/2020 09:16

Pros and cons...

"It depends on the state of the economy. In a recession, Keynes argued borrowing can be beneficial in creating economic stimulus and shortening the recession. A growing deficit when the economy is close to full capacity will be more damaging."

Personally I agree and I think the stimulus to coming way too early, it's for getting out of recessions, not to try and avoid them!!!

[smithys2019] 11/3/2020 09:09

Uk 30 gilt yields are at 1.75%. At a time there is a massive flight to safety, they would be irresponsible not to borrow.

[hamhamham1] 11/3/2020 08:54

The gov gonna use this as an excuse to break their borrowing rules. They needed a reason, now they got one. But now they'll need to borrow even more, and the downside is the more debt the country has and that knock on effect.

[1 nhs] 11/3/2020 08:40

Don’t we love the BOE

TEMPORARY, !!

Try putting rates back up , lol

[smithys2019] 11/3/2020 08:34

Asset purchase. Plus this could very quickly turn into a liquidity crisis during peak corona.

Government need corporate revenue to pay for their big cash splurge in the north. Can’t do that with no economy (although no.11 couldn’t have timed a better time to lend with current gilt yields)

[hamhamham1] 11/3/2020 08:28

Lent money to companies will have to be paid back, so anyone borrowing will increase their debt levels. It's not free money!

[montyhedge] 11/3/2020 08:25

Problem is you can throw all the money you like at it, it's not 2008 a monetary problem, its medical, a vaccine is the only thing.

[smithys2019] 11/3/2020 08:20

BoE have stated it is very much a temporary cut.

[hamhamham1] 11/3/2020 08:10

The BoE dropped the rates suddenly because of the bad situation, so markets will go back to looking at the situation after looking at the rate drop. The markets love smooth telegraphed moves in everything, the huge volatility, sudden interest rate drops, covid19, etc, does not display a smooth telegraphed market.

[dround87] 11/3/2020 08:08

Really subdued reaction IMHO. Pretty big covid milestones being hit.

[smithys2019] 11/3/2020 08:03

IAG opened 5% up this morning.